Company Pensions

[mdb]

This says it’s not deniable upon termination.

https://blogs.findlaw.com/law_and_life/2018/03/do-you-lose-your-pension-if-fired.html

I’m certainly not an attorney. He should speak with the pension administrator- not HR.

Next, a Texas labor relations attorney.

I was aware a 401(k) could either stay where it was or be rolled over into an IRA. I was not aware a guaranteed benefit pension could be rolled over, or if it’s wise to do so. That requires a financial advisor’s guidance.


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Thanks.

They did talk this morning with corporate HR with their concern. And the pension is theirs whether a voluntary or involuntary separation occurs.


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[Bill]

Good news. You’re a good man to be helping your friend.


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[Huntingfool]

I will add this - many companies are offering the pension or a cash buy out. Mine did. I am in the financial planning business for 40 years.

My advice is to look carefully when making this decision if you have to make it. The initial reaction of most folks is to take the cash. Depends on your situation but a guaranteed lifetime pension for you and your spouse is worth a ton of money IMO. Yes you can take the cash and invest it and when you and your spouse both die there may be some money left over for you kids.

The flip side of that is a pension is set for life (assuming the company giving you the pension is well funded which mine is).

So since I turned 60 my wife and I have received a monthly payment of $9000 for the past 7 years. We are both very healthy and my wife's family has a very long life expectancy.

This also allowed us to delay our social security payment to age 70 in order to max it out which will around $5,000 per month both of our lifetimes. So combined we have $14,000 per month income for both of our lives (not counting any income off of our 401k/'savings).

Everyone's situation is different but before you pull the trigger I suggest meeting with an advisor to help you make the best decision.

[mdb]

I will add this - many companies are offering the pension or a cash buy out. Mine did. I am in the financial planning business for 40 years.

My advice is to look carefully when making this decision if you have to make it. The initial reaction of most folks is to take the cash. Depends on your situation but a guaranteed lifetime pension for you and your spouse is worth a ton of money IMO. Yes you can take the cash and invest it and when you and your spouse both die there may be some money left over for you kids.

The flip side of that is a pension is set for life (assuming the company giving you the pension is well funded which mine is).

So since I turned 60 my wife and I have received a monthly payment of $9000 for the past 7 years. We are both very healthy and my wife's family has a very long life expectancy.

This also allowed us to delay our social security payment to age 70 in order to max it out which will around $5,000 per month both of our lifetimes. So combined we have $14,000 per month income for both of our lives (not counting any income off of our 401k/'savings).

Everyone's situation is different but before you pull the trigger I suggest meeting with an advisor to help you make the best decision.

Thanks Huntingfool.
Yes, it is a lot to think about. We appreciate all the input and advice from all.


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[mdb]

So revisiting this subject a few years later. Real close to starting the next chapter. I’ve heard the last several months for a Pension cash out is this. The feds raising interest rates will cause the pension cash payout to be less.
Plugging in different retirement dates does show to make a difference. Ours is locked in till end of November. After that, number goes down.
Anyone else see or are aware of this?


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