Just one more f you. I am thankful to have a lump sum pension of note (30+ yr employee) but I just lost about 35K.
8 replies (most recent on top)
Pension amount frozen 15 years ago likely to be sufficient to pay for your health insurance in retirement!
That's how I'm viewing mine given the crazy and everything escalating cost of Healthcare.
Reality 30+ years with rates where they are is a win. I got my lump sum which was frozen for all close to 15 years ago when riff’d and rollover was a smooth nontaxable event.
Many of the 15,000 wont get and we all know people during that timeperiod that received less since rates were historically higher.
Personally, while I have officially left, it pains me to see how many friends and my directvreports living in such a Me culture. Hans/Executive Team would of never survived in Bell Atlantic/NYNEX during 90’s
I think OP is talking about the PBGC rate which is used to calculate the lump sum. The lower the rate, the higher the payout and vice versa. Can't speak to union, but as far as I know the management pensions (those who still have one) use the PBGC rate. 2020 and 2021 were the years to retire and make out favorably. Rate was %.
This post is misleading the PBGC Pension Benefit Guaranty Corporation, doesn’t tell employers what to pay out in annuity, your employer does (or in our case what the union and company agreed to). It’s a federal insurance for pensions.
This is old news. Cwa has filed a lawsuit because pension are covered by state protections now, not federal(PBGC). It has less protections if the pension becomes unsolvable. This is definitely not good news for people wanting to take annuity payments rather than a lump sum. The annuity payments has 10k higher payout per year than taking 4% of your 401k, but your 401k will give you a cost of living raise, while the annuity does not. Say your buyout is 600k, 4% of 600k is 24k per year and the annuity is 36-37% of your yearly pay. The problem with state protections on your pension is that if the pension becomes unsolvable the state will insure up to I think 200k while if we still had the protection of the PBGC, your pension would be fully insured.
What do you mean, they no longer use the PBGC rate? Don't they (PBGC) just protect/ guarantee your pension in the event it becomes underfunded or gets terminated?
at least you get a pension.
Don’t they use the best of 3 rates when you retire ?