Pension benefit lump sum

Discussion in 'Pfizer' started by Anonymous, Aug 22, 2014 at 9:28 AM.

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  1. Anonymous

    Anonymous Guest

    And if you are looking at $1M plus (as I am) you don't want to risk that money going back to Pfizer should my wife and I die in an accident. My adviser serves a number of PFE retirees (many of them senior executives and managers), and just about all of them have taken the lump sum.

    But don't let me talk anyone out of the annuity. Everyone's situation is different, but mine absolutely necessitates taking the lump sum.
     

  2. Anonymous

    Anonymous Guest

    As did mine. People looking for cut and dry yes/no answers won't find it here because it depends on the amount and people's situations. My guy has a lot of ex Pfizer people also-wonder if it's the same guy.
     
  3. Anonymous

    Anonymous Guest

    Correct. I took a 250k lump in 2007 and have been able to nearly double it.
    I now have what my pension would have paid out in20 yrs. this discussion cod go on forever, but the fact remains that whatever you do is a gamble. I'm a control person and don't want someone controlling my finances, the govt does enough of that. I don't trust Pfizer at all. Govt insurance could easily disappear, and health can change very quickly. A car accident, Ebola, Isis, some nut case could end life prematurely. The safest bet is the pension, but not always the wisest. You die, it's gone. Also, do you really think Pfizer will be around forever? I don't.
    Good luck with your decision.
     
  4. Anonymous

    Anonymous Guest

  5. Anonymous

    Anonymous Guest

    Wise words. Annuities, aka pensions, are for those who want the fixed income and are not able or do not want to manage their money. The Prudentials of the world love people like that.
    It's really a simple decision; if you can live with the fact that when you die, the money stops, by all means go with the pension if your payout is 250-300k. you'll make that back in 10 years with a pension...but remember, if you invested it wisely you would still have a chunk of cash in ten years and on for your wife, kids, mistress...whoever. Or when your health fails spend it all on your bucket list.
     
  6. Anonymous

    Anonymous Guest

    This could all change tomorrow with Obama's spread the wealth philosophy.
     
  7. Anonymous

    Anonymous Guest

    This is a good education reading this thread. I just went through this exercise with my mother-in-law (MIL). I spoke with an Annuity guy, my CPA and Clark Howard's website (plus others). All three said to go with the Annuity. I recommended the lump sum. It may be in the mindset of professionals to "do no harm". By selecting an annuity the client is protected from "living too long" and out-living their savings. Statistics show that most people do not do well investing on their own (study from Clark's website).

    The thought that swayed me to take the lump-sum was mainly driven by current needs. My MIL is 70, single and has social security and another monthly pension that meet her expenses. If she did not have a "guaranteed" income that covered her needs then I would have leaned to the monthly pension.

    Because one of my MIL's goal was to leave a legacy she also choose the lump-sum. We ran many scenarios with various interest rates and tax implications. The vast majority favored the lump-sum for her situation.

    Good-luck on your decision, do what is best for your situation and risk tolerance!
     
  8. Anonymous

    Anonymous Guest

    If not retained and over 55, Legacy Pfizer, can you take lump sum of pension?
     
  9. Anonymous

    Anonymous Guest

    The changes in pension effective 12/31/17 will have major impact on Legacy Pfizer lump sum amount if reach "90" benchmark after end of 2017.
     
  10. Anonymous

    Anonymous Guest

    Im sure Pfizer will never do anything to harm employees. They are truly an honorable company who has your best interest in mind. (please note sarcasm as I type this). Take the annuity-it will always be funded and you have no worries that the Fed will take it over and reduce your payments. I for one am glad I took the lump!
     
  11. Anonymous

    Anonymous Guest

    Take the lump or get the hump.......it's coming...

    http://www.latimes.com/business/hiltzik/la-fi-mh-worker-pensions-20141205-column.html
     
  12. Anonymous

    Anonymous Guest

    Does anyone know what the lump would be for 18 yrs of service? I've been told by HR 250000, 315000, and 450000. Three separate hr people 1 month apart.
    Any info would be appreciated. Getting tardy to file a complaint with ERISA
     
  13. Anonymous

    Anonymous Guest

    Im curious as to how the lump sum offer works.. I worked at this evil empire for 7 years before I resigned. If I would've received any correspondence in the mail id have thrown it away. Any insight as to why it was offered would be helpful.
     
  14. Anonymous

    Anonymous Guest

    Very typical from HR. Call Fidelity, who handles the pension, and they will look into it. I am very cynical....can you trust Fidelity who is paid by Pfizer? I had 18 yrs in 2007 and my lump sum was $260,000. Others with same tenure received about same.
    Do not trust what HR tells you. The people working there only read prepared scripts, they have little if any real knowledge.
     
  15. Anonymous

    Anonymous Guest

    What are the stipulations to receive a lump sum buyout offer?
     
  16. Anonymous

    Anonymous Guest

    You must first have a lump.
     
  17. Anonymous

    Anonymous Guest

    ....and be employed by lumper.
     
  18. Anonymous

    Anonymous Guest

  19. Anonymous

    Anonymous Guest

    All true with one exception: The high number of vaccine retirees had nothing to do with interest rates. In mid 2011, Pfizer announced that anyone retiring by 12/31/2011 would have the Legacy Wyeth retiree Health Plan. Anyone retiring after that would be carried on the Pfizer retiree health plan. Retiring on the Wyeth Plan put an extra 400 bucks a month in my pocket - it was really that simple.