donheff
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
My brother is in the final stages of lung cancer. He has worked for the phone company for 35 years. He (actually my sister-in-law) with his POA retired taking a lump sum. The original plan was for him to stay on the company rolls until he died but they learned that the pension choice would be dramatically poorer if he did. By retiring and pulling the lump sum he got all of it, which he will leave to his wife. If he died on the rolls his wife would only get half. The actions have already been taken so I haven't researched this in detail. It sounds like a previous defined benefit plan was converted to defined contribution and, essentially, outsourced to Fidelity. The cash out papers went to Fidelity and Fidelity will send the check. It doesn't make sense to me that a defined contribution plan should be able to half the lump sum that a surviving spouse can receive. To those of you have have such setups, do you know if this is possible? It ended up forcing my brother off the rolls at an arbitrary point just to protect his retirement funds.