iloveyoga
Thinks s/he gets paid by the post
Tell me about it. My former Megacorp offered a pension buyout that was roughly half of what it would have cost for an annuity. Likely one of the worse deals I have seen posted on this forum. I stuck with the pension that I started 5 years later. If I could have received at least 90% of annuity value, I would have gone with the lump sum.
As it is, they shut down the pension at the end of 2021 and moved the funding to an annuity for all pension owners. So, instead of being covered fully (in my case) by PBGC, it is covered up to $250K in terms of a replacement annuity should the current insurance company default. For now, that coverage is insufficient to replace my current pension/annuity fully should the worst happen. Sigh.
I worked with DB plans for many years back in the 1980s and 1990s. This above is why I gave the advice I did. If the lump sum amount is reasonable, I would take the lump sum so you do not have to be concerned about the future of the annuity. It's been a while since I thought about it, but usually in a plan termination a single premium annuity is purchased for the pensions, so it is basically an insurance company guarantee.