Did anyone affected by ACT get a payout from the minimum pension plan? The FAQ doesn't mention this, but I assume if you've been around long enough there will be a payout (and not just for the ERP folks)
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Yes, it's best to talk to a Fidelity financial consultant. Everybody's situation is different. I'm 63 and we decided to take the pension when I'm 65. The minimum pension plan payout is better than you would get with an annuity on the open market bought with the lump sum payout. It will be nice to have the guaranteed monthly income from the pension and then be able to be a little more aggressive with investing of stocks, etc.
Just call Fidelity to get the answers to your questions. For me:
401k rollover after July 1.
Lump sum payout/rollover of pension funds ... process started but check will arrive around 6 weeks from July 1.
You need call Fidelity to get the process started or I suppose you can do it online.
I'm took the ERP. My fidelity guy said to pull after the last day+30 into my 401k. I already pulled my portion out when I was 59.5
I withdrew mine and rolled it to IRA then the next tax year I did a "backdoor" conversion to a Roth. My recall is the way the minimum pension works is they take the annuity value if you company account and if this is less than a complex formula based on years of service and salary then there may be a minimum pension available. If not then you won't have a minimum pension payout. If you read the fidelity documents the formula is there and you can also query the value of your minimum pension bennifit. If you get confused just call the help number fidelity provides and they will walk you through it
Be aware if interest rates rise your min pension will get smaller because the annuity value of your SERP goes up. And vice versa ... if the interest rates fall then the value may go up. And both depend upon the value of your SERP and the market fluctuation .
Disclaimer. I'M NOT A FINANCIAL ADVISOR. Call fidelity for up to date information and consult a professional if you are uncertain. I'm just trying to gi e a thumbnail from my recollection and experience. Your situation may be different. Fidelity guy was helpful to me and spent as much time as I needed to be comfortable with decisions. Good luck
I seem to recall a post on this site, perhaps a month or more ago - it was during the time period people were preparing to be walked out. Anyhow, someone had mentioned that it was wise to request a one time pay out, especially if you're not close to the withdrawal age. The reasoning was that the money would sit completely idle otherwise and would not accrue a cent. If you pull it out, or roll it over you can invest it until needed or wanted. I also wonder if it is similar to the 401k. As long as you were working at the company you separated from when you are 55 or older, you may withdraw that without penalty. However, if you roll your 401k over to an IRA you can no longer do this.
My advice would be to research these important decisions a bit more.
Thanks @qfy. I tried the fidelity tool and it suggested that there was a significant chunk there. Can you still be in the plan if you're no longer an employee? I was thinking of rolling it over to an IRA so I can control the investments (without paying penalties & tax)
They will not automatically pay that out. It is like the Profit Sharing or 401K. You cannot draw til 59 1/2. You can go to fidelity and model a lump sum payout for different years. If you do decide to do it and you are not 59 1/2 you will pay a penalty. I would not mess with it if I did not really have to, just let it sit for now.