Originally Posted by glinka
I'm retired from General Motors, with pension of just under $2000 a month. They are talking about buyout of pension. The question is how to figure how much is enough. How is buyout taxed? What to do with money? Annuity or what?
I am a GM retiree also (salaried) but retired long ago, 1988. From what I have read, you must have retired after 1997 in order to be offered the buyout. Anyony retiring before that date stays on the old system and cannot get the buyout. If you retired after 1997 from what I understand, you have three choices. Buyout, stay as you are or take a monthly payment based on an annuity from Prudential. I don't think the spousal benefit is available. So if you fall in that category be sure to check out that provision.
Edited to add: By the old system, I mean nothing changes except everything is now run by Prudential.