Social Security and pension

[dwk]

After discussing my wife's case for social security disability for three years, she finally received a favorable decision. Prior to her becoming ill, she worked as a nurse at a local hospital. My wife is 53. Is it necessary to wait until she is 59 to start receiving her pension? Ideally, I'd like to take it as a lump sum and invested in an appropriate fund.

Thanks!!! for your help --I've learned quite a bit over the years from this board. Have a Merry Christmas and a safe and healthy new year.

Dan

 

[old woman]

Every pension plan is different

 

[dbr]

Yes, every pension plan is different. Your wife's pension may or may not have a lump sum option. Often when separation from service occurs before age 55 the pension is not payable until age 65 or 66. Separation after age 55 often allows a reduced pension immediately, but your plan will be what it is. In some cases a disability early retirement is part of the pension plan and could allow starting payment before age 55, but that would have to be a provision of the particular plan. Private plans are different from federeal plans such as CSRS or FERS which are different from state and local public employee plans, teacher plans, or Railroad Retirement provisions. Disability for plan purposes is not the same a SS disability. I assume there was no long term disability covereage from the employer?

The best action is to take your questions to the employer to determine what benefits you have.

 

[Alan]

After discussing my wife's case for social security disability for three years, she finally received a favorable decision. Prior to her becoming ill, she worked as a nurse at a local hospital. My wife is 53. Is it necessary to wait until she is 59 to start receiving her pension? Ideally, I'd like to take it as a lump sum and invested in an appropriate fund.

You need to discuss this with the HR folks where she works. e.g. my company will allow a reduced pension between 50 and normal retirement age for health reasons. Also, I pay disability insurance through the company which pays full pay for 6 months, then 50% for another 12 months, so if I was in a similar situation I would do the math since the reduced pension is lowered based on the number of years away from 62, so running out the disability insurance cover may well be more cost effective.