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Old 08-24-2009, 11:53 PM   #21
Confused about dryer sheets
 
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With the information I've obtained by you good people, coupled with what I've recently learned from my own research and consult with an expert, the employer by law must provide for cost of living increases, whether it's a lum-sum payout or annuity. If anyone is interested in the authority, drop me a note and I can email a nice article.
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Old 08-25-2009, 06:16 AM   #22
Recycles dryer sheets
 
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Quote:
Originally Posted by sailfish View Post
... many states don't tax pensions payed out monthly, as opposed to a fixed annuity bought later. NJ doesn't tax the first $20,000...
I'm a NJ resident and will have to decide lump vs. monthly a few years from now, so that's for that valuable piece of information!

edit: Then I did some more reading and it the $20k exclusion is only if you're 62 or older and filing jointly so it won't help me. Oh well, still good to know.
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Old 08-25-2009, 08:24 AM   #23
Thinks s/he gets paid by the post
 
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Quote:
Originally Posted by lgriffa View Post
......... the employer by law must provide for cost of living increases, whether it's a lum-sum payout or annuity.
do you mean: THE employer (as in all employers?) or
MY employer (specific to your plan)?

I thought most corporate pensions were fixed so I'm confused
by your statement.
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Old 08-31-2009, 08:04 PM   #24
Confused about dryer sheets
 
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Now that I've become an quasi-expert on this issue, I've learned that ERISA requires ALL lump-sum payouts to include COLA (cost of living increases).
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Old 09-06-2009, 02:14 AM   #25
Recycles dryer sheets
 
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It's hard to know for sure unless you post the amounts. In the case of that one commentor, there is absolutely no way I'd take a 350K lump sum over a 60K pension unless I were quite advanced in age.
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Old 09-06-2009, 07:14 PM   #26
Full time employment: Posting here.
 
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Quote:
there is absolutely no way I'd take a 350K lump sum over a 60K pension unless I were quite advanced in age.
Yup, that one doesn't even seem close to me.

My wife's pension gets an assumed 8% for both her contributions and the 100% company match, it's like a savings account on steroids. Barring crazy inflation we'll leave whatever we can in there for as long as we can.
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