Question about the Pension?

just curious. Former Pfizer employee here with pension. Am 48 years old, not retiring probably for 10 years. Do I take the $1700 monthly and is it secure? Or do I take the lump? Dont' think I can take lump until the age of 50....does anyone know how that works? I'd rather take the monthly as I am in great shape and think I'll live a long life (never know)

 

Lump, always. Puts you in control of your money, not Pfizer.

 

If you plan to live from 58 to 88, you will make a lot less with the lump. Monthly check will pay you more. Do the math. Pfizer is not going anywhere.

 

Fool. Pfizer can always change payout terms, amount (interest rate) and is currently $2.9 billion underfunded in pension liabilities.

Also, Pfizer has strong lobby and political power. One change in the law and you're screwed. http://www.cbsnews.com/8301-505123_162-42849429/how-pfizer-saved-millions-by-dumping-its-retirees-on-medicare/

I would not keep Pfizer as a bank with my hard earned money. Maybe you will, but so too did people think Enron would never go away, once strong and powerful.

 

When can you take your money out? at 50 or later?

 

Any Pfizer employed (former or current) should contact the Pfizer pension # for questions about their pension options, if they did not have the good sense to keep the information when it was sent to them in the mail. Anyone who was not Pfizer legacy was sent pension info. in the mail, and those who have been previously layed-off. In addition, there is a contact # for questions. As a past legacy, I get the option of a pension, under current Pfizer portion, it forces the annuity so a choice may not be an option. Depending on your legacy, your options may be different. It is your responsibility to be informed, and I would take it seriously if you were fortunate to have a pension benefit available. Most people who have any knowledge of pension's would be better off taking a lump sum option over an annuity pymt. option for a plethura of reasons. For the person who thinks an monthly annuity is guaranteed secure, should google... what happens when the PGBC has to take over a company pension program.

 

Wyeth legacy here-I don't know anyone who was fortunate enough to retire that took the annuity over the lump sum. Take your money and run!!! Do your homework-interview a bunch of financial advisors and find one you can trust and that is on the same page as you. Depending on the size of your payout, you will more than likely get a higher monthly check with a conservative investment than you will with an annuity. Everyone's situation is different- but I DO NOT trust Pfizer (or most big corporations). If Pfizer defaults/stops funding (or whatever) look for your monthly check to probably be cut in half (not sure what happens if younger than 62/65!) if the government takes it over. Good luck.

 

Unless you have hit the "rule of 90," Pfizer no longer provides the option of a lump sum. So the monthly check is your only option, but the closer you wait until the age of 65, the more the check will be.

 

Please explain the rule of 90.

If I was laid off at 45 with 21 years of experience, when would I be eligible to take the lump sum. I am 48 now

 

It's called the Rule of Never. Unless you grow up to become CEO like Ian Read it'll never happen. So don't worry about it, move on.

 

the last poster is a complete jerk wanting others to wallow in his/her self hatred. interesting, with anonymity you can see what an evil person he/she is.

you will be fine. just go to fidelity and look at your pension. type different ages and you can see the lump sum or the annuity. After the age of 50 I believe you can take the lump just not earlier.

good luck and enjoy your retirement in the future.

 

The rule of 90 is your age when you retire, quit,
or get laid off--plus, your years of service.
So if you were 45 and had 21 years of
service, you hit 66. Under the new rules,
you can only get the monthly annuity.
Regarding the rule of never poster, I doubt he
ever moved out of his mother's house.

 

Actually form Pharmacia & Upjohn here. You can cash in your P& U pension and your Pfizer pension at 50 but not earlier. It depends what legacy company you came from.

 

It is nice of you to explain this, but keep in mind this person had this explained to them (who knows how many times) while they would have been at Pfizer and did not bother to pay attention. That should say it all about the person's interest in his pension plan.

 

To post #9. Go to the Pfizer Fidelity retirement page and type in different scenarios. If you are Legacy Pfizer, you can take only pre-1993 funds as a lump sum.

 

Yes, I just checked. When I turn 50 it shows my lump sum amount or annuity. But before age 50, I can't collect anything. Maybe it's a provision since I came from a company Pfizer acquired.

 

That would be because you have to be a minimum age of 55 (regardless of company legacy) to start collecting your pension. How many years were you employed at Pfizer, and never remembered this big detail. Unbelievable.

 

You are certainly a self-righteous bastard; maybe, a layoff will be in the cards for you -- don't forget to take notes on everything when a million things are happening at once.

 

Tougher decision for you than for an older "near retiree" like me. You will obviously be working longer since you are still young and have other retirement resources. The pension could be an annuity for you in retirement while you could invest the rest (401K). For me, the lump sum numbers work out best since if invested in a balanced portfolio, they have the chance to grow quite a bit and I can pass it on to my survivors. Don't base it only on Pfizer not being here. That is something to consider, but they are very strong right now. (key words, right now)
Good luck to you on your choices.

 

Exactly...what a jerk-off. I was laid off from a Pfizer acquired debacle and have a pension coming to me. And you're right, when they send you a separation packet an inch thick and you're worried about getting another job, the pension decision is not at the forefront. Wait as long as you can during your working years to take disbursement on the pension dollars....go to Fidelity to check scenarios.