Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Lump Sum vs. Annuity Pension
Old 10-19-2006, 06:47 PM   #1
Recycles dryer sheets
 
Join Date: Apr 2006
Location: SW Ohio
Posts: 57
Lump Sum vs. Annuity Pension

With the shift in interest rates and the new laws being phased in tieing lump sum calculations to a modified corp. bond rate instead of just the treasury rate, I'm toying with taking a pension as an annuity.

My concern is if my company later defaults on it's pension and the government has to pick it up. I have studied the PBGC maximum coverage and have a question about the age scale they use. Is the maximum listed based on the age you retired at, or is it based on your age when your plan defaulted, if you are already retired?

Thanks for any replies!
__________________

__________________
Retired 8/12/2011
zaqxsw is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Lump Sum vs. Annuity Pension
Old 10-19-2006, 07:10 PM   #2
Thinks s/he gets paid by the post
MasterBlaster's Avatar
 
Join Date: Jun 2005
Posts: 4,359
Re: Lump Sum vs. Annuity Pension

Per the PBGC website, The maximum monthly guaranty tables suggest that is is your age when the PBGC starts funding your pension, not how old you were when the original pension started.

Here's a quote from their webpage:

Quote:
The maximum guarantee is set by law for the year in which your plan ended. The amount you receive from PBGC will be based, in part, on your age at the date you begin receiving benefits from PBGC
here's a link to their table and discussion:

http://www.pbgc.gov/workers-retirees...t/page789.html
__________________

__________________
MasterBlaster is offline   Reply With Quote
Re: Lump Sum vs. Annuity Pension
Old 10-19-2006, 07:18 PM   #3
Recycles dryer sheets
 
Join Date: Apr 2006
Location: SW Ohio
Posts: 57
Re: Lump Sum vs. Annuity Pension

Thanks for the quick reply MasterBlaster!
__________________
Retired 8/12/2011
zaqxsw is offline   Reply With Quote
Re: Lump Sum vs. Annuity Pension
Old 10-20-2006, 06:24 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
donheff's Avatar
 
Join Date: Feb 2006
Location: Washington, DC
Posts: 8,634
Re: Lump Sum vs. Annuity Pension

Quote:
Originally Posted by MasterBlaster
Per the PBGC website, The maximum monthly guaranty tables suggest that is is your age when the PBGC starts funding your pension...
here's a link to their table and discussion:
http://www.pbgc.gov/workers-retirees...t/page789.html
Wow, the PBGC really sticks it to ERs. You need some kind of bankruptcy insurance to carry you to 65 .
__________________
Every man is, or hopes to be, an Idler. -- Samuel Johnson
donheff is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Take a lump sum or pension payout Rollie FIRE and Money 45 06-11-2006 07:54 PM
lump sum or annuity payout on rule of 85 scubamonkey Young Dreamers 8 02-24-2006 05:07 PM
Lump sum or annuity runnerr FIRE and Money 17 07-01-2005 03:39 PM
Pension Plan Sum verses Annuity AlanS FIRE and Money 19 02-05-2004 09:50 AM
Annuity vs Lump Sum Pension moguls FIRE and Money 5 05-26-2003 03:09 PM

 

 
All times are GMT -6. The time now is 11:43 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.