googily
Full time employment: Posting here.
- Joined
- Jul 6, 2013
- Messages
- 792
My Megacorp has followed the herd and announced recently that it is freezing the defined benefits pension at the end of this year. They are moving employees who were still in the DB plan to a Cash Balance plan (but new employees won't even get that).
They are supposed to be sending us documentation, have meetings, etc., but there's one sentence in the announcement that's driving me crazy while I wait, and I'm hoping someone out there can read the tea leaves better than I can:
"The Cash Balance Schedule has a three-year vesting schedule. Your current years of service will transfer to the Cash Balance Schedule and will count towards the vesting requirement and the amount of pay credit."
I have 18 years of service, and am hoping to RE in a couple of years. Does this mean that I will have access to a lump sum from the Cash Balance that covers my 18 years? (while still then having the option of my larger DB remaining as an annuity)
Thanks for any insights. I am miffed about the pension, but between pension and 401k and SS, I'm less worried about financing my years past 59 1/2 -- it's the getting to 59 1/2 that could use a little padding, so this Cash Balance switch could have somewhat of a silver lining.
They are supposed to be sending us documentation, have meetings, etc., but there's one sentence in the announcement that's driving me crazy while I wait, and I'm hoping someone out there can read the tea leaves better than I can:
"The Cash Balance Schedule has a three-year vesting schedule. Your current years of service will transfer to the Cash Balance Schedule and will count towards the vesting requirement and the amount of pay credit."
I have 18 years of service, and am hoping to RE in a couple of years. Does this mean that I will have access to a lump sum from the Cash Balance that covers my 18 years? (while still then having the option of my larger DB remaining as an annuity)
Thanks for any insights. I am miffed about the pension, but between pension and 401k and SS, I'm less worried about financing my years past 59 1/2 -- it's the getting to 59 1/2 that could use a little padding, so this Cash Balance switch could have somewhat of a silver lining.