Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Company Pension Question
Old 06-27-2004, 10:20 AM   #1
Thinks s/he gets paid by the post
 
Join Date: Mar 2004
Posts: 2,083
Company Pension Question

Although I keep track of my projected small pension about $1000 which would start at 65, I have not yet included it in my retirement assets because I am not sure if the it will be there in 9 years.

But I have a couple questions,

Can the monthly payments go directly into a tax deferred retirement type account?

Since most of us are ER'd prior to the start of the benefits, are the payments for most pension plans inflation protected up the age of 65 similar to SS?

I already know that at 65, my pension amount will be fixed.

I hope that I will have the option to take a lump sum amount as well.

Only the principal owner and trustee can answer these but I would rather not ask any retirement related questions for another 8 months.

Thanks

MJ
__________________

__________________
I look to the present moment because that's where I live my life.
MJ 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: Company Pension Question
Old 06-27-2004, 12:15 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,880
Re: Company Pension Question

Hey MJ,

Generally your pension payments can not go into a tax deferred account because tax deferred accounts (401k, IRA, 403b etc) are related to earned income and your pension is not earned income.

Unless *so stated (like ss and military pensions), most pensions are not indexed (inflation protected). *They stay the same amount until you die.

Some pensions offer a lump sum distribution but many do not. *I suggeest you read any literature that you were given as well as contacting the company to get an accurate reply.

You have a right to have any retirement questions answered in an accurate and timely manner. *Do not be intimidated by the powers-to-be. *Just tell them that you are doing a little retirement planning and you need the information. *I'm sure that the trustee and principal owner are very aware what their retirement situation is (in other words they have done a little retirement planning), why should you not be so informed?

Hope this helps,


__________________

__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Re: Company Pension Question
Old 06-27-2004, 01:00 PM   #3
Full time employment: Posting here.
 
Join Date: Sep 2003
Posts: 902
Re: Company Pension Question

Quote:
Since most of us are ER'd prior to the start of the benefits, are the payments for most pension plans inflation protected up the age of 65 similar to SS? I already know that at 65, my pension amount will be fixed.
MJ, if the amount at age 65 is fixed, I would highly doubt that there is a COLA between the ER date and 65. I know my non-COLA'd pension has no such feature, and I've never heard of one that did.

My pension plan distributes a booklet to those who ask (and it is available on the employer's web site) that describes all the details of the pension plan. You might ask if they have anything like that. I wouldn't trust anything an HR rep told me. In my experience they are often clueless, and to make matters worse, they never hesitate to give you an answer.
__________________
Bob_Smith is offline   Reply With Quote
Re: Company Pension Question
Old 06-27-2004, 03:23 PM   #4
Thinks s/he gets paid by the post
 
Join Date: Mar 2004
Posts: 2,083
Re: Company Pension Question

Thanks for the information.

Although I work for a large private family company they don't have a corporate HR department. They do distribute plan pamphlet but it doesn't answer my questions.

I guess there is no harm in asking a few simple questions.

MJ :-/
__________________
I look to the present moment because that's where I live my life.
MJ 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
Another Roth Question kjpliny FIRE and Money 30 03-27-2007 04:35 PM
Social Security and Pension question guest FIRE and Money 31 06-24-2004 06:19 PM
Hope for those who likely will have no pension? Susan Powell Young Dreamers 31 04-04-2004 05:43 PM
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 05:48 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.