Question about the Pension?

Read up on the pension.
The rule of 90 deals with increasing benefits. The pention can be taken anytime after turning 55. Either as a lump sum or monthly.

 

A pension should be impt. to you. Its a luxury. Its why most people stick around this hell hole instead of get out because they knew they were building on their pension. Pension documentation has been given to all legacy employees at various times, not just when you get a separation package. I'm still here and I have received an entire pension package that explains fully in detail what I can receive from both legacy companies. Its just that for those that don't appreciate what a pension offers don't bother to keep informed. No one should criticize someone else for their own laziness. Just saying....

 

Annuities look good on the surface, but too many when's and big "IF's. Pensions are no longer the rock solid things they were in the past. Perfectly healthy people die prematurely, and do you think your spouse will be able to do battle with Pfizer? Forget the "advisor"at Pfizer...they know next to nothing. And, ask yourself this question: Why will Pfizer not offer you a lump sum? Because they are concerned with your welfare?

 

Absolutely great advice! Thank you.

 

Very wise and sound advice!

Add to it: And when you get killed by a texting idiot or a drunk, or contract any number of diseases that could kill you, then what ? Annuities are made for suckers and gamblers, as well as for the companies who sell them. With all the hidden fees, loopholes, etc. you lose. Do your own math. Take your lump, add conservatively 4-8% interest to it every year with good investments, and you should be close to receiving what the annuity will pay you....without touching the principal. YOU control your income, not an institution that is more interested in their income vs. yours.

And, PLEASE don't listen to the Pfizer financial idiots; they read the script which can change with every call. A monkey can give you better answers.

 

To be clear, since I too have received several different answers from HRSource: If I do not meet the Rule of 90, am 60 years old with 27 years at Pfizer, I am NOT eligible for the lump sum any longer?

 

Taking a lump sum is NOT for everybody. Only take a lump sum if 1) You have the discipline to invest it and not blow it on a ski/beach condo or S550s. 2) You have other retirement resources that will meet your basic living expenses. 3) You are in poor health and expect to die early. 4) You are comfortable managing investments and know/accept the risks.

 

One of the above posts writer states that a lump sum invested at 4-8% annual return will pay the same as a pension "without touching the principal". Possible, but the longer you live, the less likelihood that your money will last.

 

Here is the breakdown: My Numbers. Pension-5,000 per month. Lump-1,000,000

If I invest conservatevly, i can get 7% If I draw down 6% and the principal remains with modest return. And, I have control over the principal. Lump vs. annuity is a no brainer. there should be NO discussion on this topic. period.

 

Numbers seem a little too round to be realistic. If $1M lump then should be $3-4/month pension. If you can get $5k good luck. I don't believe it.

 

If you don't have the discipline to avoid blowing your lump sum on something stupid, then you're going to have a hard time no matter HOW you take your pension! I retired almost 7 years ago with a lump sum of $1,030,000 and $750,00 in my 401k. Even after the stock market crash, today I have a combined $2,800,000 in my IRA. Haven't withdrawn anything yet because my spouse still works and I'm not 70 1/2 yet. But I would never allow Pfizer to hold onto MY money and dole it out to mea month at a time!

 

Rather than speaking to the people at HR Source go to the Fidelity Site and print out your options. It is all in black and white on the site, and you can print it out to have a written, legal record. I believe that even if you don't meet the rule of 90 (at least, Pfizer legacy), you can still take the lump sum before 2017. Anyone retiring after that period of time can only receive the lump sum if they meet the rule of 90.

 

Totally agree with this. Just curious-do you handle it yourself or do you use an advisor. Advisors aren't cheap-but are worth it when you find a good one.

 

Have used an advisor for years-he is worth every last penny I have paid him!!

 

I don't want to get in the mud slinging, but I'll share my experience and a key consideration. I'm L-W who took the lump sum at retired early at 55.5. I'm now working a low stress job for much less money. A key consideration in my decision to leave early was interest rates and the impact on the lump sum. With rates at historic lows you get a bigger lump sum to provide an equivalent pension. I took a 50% pay cut because I realized that if rates double (very likely), my lump sum would take a drastic cut, cancelling out any additional increases from working longer. No regrets.

 

Any L-W person who is eligible to get out should seriously consider it. You will NEVER get a better lump sum payout than you will now. If you are of the mind set that you will "just stick it out a few more years" until you hit X age you will find out you probably worked the last few years for nothing (except the pleasure of working for this company that truly appreciates you and your efforts!). Interest rates are going up, maybe not next month or the month after- but they will be trending higher. Pray to get cut in the next round of cuts (you know its coming). if you do get cut, you get the gold/silver parachute (severance) as a going away present. This is something many people do not get when they retire!

 

That's right. And as I understand , the Parke Davis people have to take the monthly annuity. Which suxs.

 

If you have the option to take a lump sum this should make you're decision a "no brainer"!!



Congress Considers Letting Pension Trustees Slash Benefits For Retirees: Report
The Huffington Post | By Dave Jamieson
Posted: 10/22/2013 2:32 pm EDT | Updated: 10/22/2013 2:44 pm EDT



http://www.huffingtonpost.com/2013/10/22/pension-cuts-in-these-times_n_4143938.html?ref=topbar

In the coming weeks, Congress will consider legislation that would reform pension laws in a way that could slash benefits already promised to retirees, In These Times reports.

The proposal, which hasn't been made public yet, would give trustees of multiemployer pension plans the discretion to cut guaranteed benefits, so long as those cuts were done as "early corrective actions" to financially troubled plans. While corporations in the past have been able to wiggle out of guarantees for future retirees, the promises to current retirees have generally been untouchable.

That would change under the plan Congress will soon consider. "If adopted, the proposal would strike at the core" of U.S. pension law, reporter Cole Stangler writes.

The proportion of U.S. private-sector workers who enjoy defined-benefit pension plans has eroded significantly in recent years, as corporations switch to cheaper 401(k) plans to shift risks to their employees. Despite having fewer workers paying into such plans, and despite nearly being drained by the financial crisis, a lot of once-endangered multiemployer pension plans have since returned to stability.

According to Stangler, in addition to slashing benefits for many retirees, giving trustees the leeway to cut benefits in multiemployer plans could embolden corporations to argue for the same discretion in their own, smaller plans, which are subject to different rules.

"If this legislation included proposals to allow cuts to retiree benefits it would set a very bad precedent for all pension plans, large and small, public and private sector, troubled and well-funded, single-employer as well as multi-employer," Frank Larkin, of the International Association of Machinists and Aerospace Workers, told In These Times.

The National Coordinating Committee for Multi-Employer Plans, which is made up of unions as well as employers, has already spent hundreds of thousands of dollars lobbying on the proposal.

 

Not reading the Huffington Post is also a no brainer.

 

Not a regular reader and was directed there with the link from another site-the message is what's important if you are considering a lump sum or annuity(whether you like the source or not). Don't have to like it or believe it. Just thought people would like to know. It's an important decision if you are lucky enough to have the option.