I hear that XOM doesn’t like to carry the liability on their books of your pension after you leave. So if you leave after 5, 10, 15, 20 years and don’t reach 55 they offer you lump sum for your pension payment.
Is this true? If so, what do those amounts look like?
For too many people, Lump Sum is a religious belief and there’s no discount rate that is too high for them.
At current rates in the 5’s, everyone should be taking the lump sum vs. monthly pension question seriously.
4Q2020 and 1Q2021 were the best years to retire for the lump sum pension. The lump sum pension has been dropping since 1Q2021
@bp, you “thought Exxon had smart people working THERE”. So you don’t even work for Exxon? Or are you a BTC employee with a cr-ppy attitude?
If you don’t make it to 55 you get pennies on the dollar. Rising interest rates significantly reduce the lump sum. Lump sums are already much smaller than they were only a few years ago due to interest rates.
why would anyone take the annuity ? i thought XOM had smart people working there ....
Go to Alight and run the numbers yourself. This topic has been beaten to death.
Everyone gets a lump sum option. As of last year, if you opt for the monthly pension and your payment will be $1600/month or less, EM will dump you onto a MetLife annuity. The downside of the MetLife annuity is you lose federal pension guarantee.