Private pensions are especially convoluted. And I assume no government pensions are lump sum optioned. In fact, my ild employer no longer offers pensions and hasn’t for maybe 15 years. There were added benefits in mine that were always shifting, but a lump sum option never materialized. It started as a COLA pension that was partial contributory and ended with no COLA, but added Medicare subsidies if you go through their broker. The subsidy depended on years of service and they do adjust every year with Medicare costs. They don’t cover all of it but I can’t complain about an extra $2200/yr. Since some of the pension details we’re grandfathered, I do get a COLA, but usually about $25/mo, each year, LOL, and about $20/mo of it is tax free from the early contributions. Better than a stick in the eye, but compared to total, fairly insignificant The lump sum equivalent would have to have been well north of $1.5 M and I doubt I would have taken it anyway. It is very stressless to see those checks (pensions and SS) go in every month, plus I do monthly auto withdrawals from Fidelity, and pretty much leave everything alone now, with only the odd expensive trip or purchase requiring any action.
