To those laid off that had a pension and not retirement eligible, are you able to roll out the lump sum into an IRA? How does it work, how do you know what $$$ amount you get? I want to make sure I roll before 3M goes under and get reduced lump sum due to intrest rates.
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I'm portfolio 1 and have just over 30 years of service. My lump-sum estimate for retiring Jan 1 2024 dropped 38%. That's not a typo. It went from 17.0 years of pension payments to 10.5 years. The monthly pension option payment didn't change. As others have indicated, the cause was the sharp increase in IRS 417e segment rates used to convert a future pension stream to a current lump-sum. Each year 3M adopts the November segment rates, so they should change again after November. I'm hoping they move lower, because I'd like to take the lump sum, but it's unlikely they'll move to where they were in Nov 2021 (which drove the much larger lump sum estimates in 2022).
Given the interest rate pegged to 11/30/2022 417e segment rates, your pension lump sum will have reduced by about 25-30% (the younger you are, the bigger the drop) from end of last year. I think it will be beneficial to look at taking monthly payments as opposed to lump sum at this stage. Unless if you are JG16 (Director) or above, your monthly pension payment will likely be below the PBGC limit; i.e. your pension should be guaranteed.
Thank you all for the great advice. I will be working to find a financial planner to assist with this. I am looking forward to seeing what life outside 3M looks like, but I might take a little time and cherish the opportunity to enjoy some time in some great weather.
Post ID: @kgo+1mMBh9y8 nailed everything. I'm in the same boat (53 YO w/ 35 years service). Talk to your financial advisor about your options, but when when reviewing with mine it was clear that there was no value in leaving the pension for 3M/Empower to manage as we can get a far higher return elsewhere. One thing to know is you don't need to declare your intent before your separation date.
Your separation packet contains all of the links/phone numbers you can use to contact the necessary agencies. Make yourself comfortable while you're on hold waiting to talk to an agent, but they've generally been helpful.
Yes, you can do this before being retirement eligible. I rolled my pension lump sum to an IRA when I left last year at age 53.
Log in to the Willis Towers Watson website to check your pension lump sum amount. (Search 3M Go if you don't have the link.) Contact them to send you the paperwork to roll it over to an IRA. My significant other and I both did this. One of us received the forms by postal mail and the other by email. Not sure why the difference. They will mail you a check which you then then send to your financial institution along with a deposit slip for your IRA account.
You are too late to avoid the reduced lump sum due to interest rates that changed for anyone who retired/left after 12-01-2022. 3M uses the IRS 417e segment rates from November of the previous year to calculate lump sums distributed in the current calendar year. So you've got a few months to do this before rates change again.