Choosing the right Pension Payout Plan

[Don Rickles]

Discuss

[Onebadcad]

I knew a dood, not family, NOT a friend, retired from NYC, took the lump sum.
A few months later a monthly benefit started showing up, he kept silent.
Fifteen years later it was discovered, he pleaded innocent, had to pay back with no interest assessed.

Try that one.

[ratflinger]

I took the lump sum and dumped it in my IRA. The pension plan was set up so that the company I left retained control of the plan. I had some worries that someday the greedy bastards would try to claw it back so I just liquidated and went on my way.

[Don Rickles]

I took the lump sum and dumped it in my IRA. The pension plan was set up so that the company I left retained control of the plan. I had some worries that someday the greedy bastards would try to claw it back so I just liquidated and went on my way.

Not seeing a Lump Sum option availability.

[Mike Mercury]

https://i.ytimg.com/vi/hgULXa65uqc/sddefault.jpg

[ft laud mike]

what are your options?
I retired from FRS (florida)
there were 4 options to choose from, as well as a lump sum payout

[Don Rickles]

what are your options?
I retired from FRS (florida)
there were 4 options to choose from, as well as a lump sum payout

Married




To survivor
0
50%
75%
100%

Or pick a term the employee survives/ the SO would receive decreasing amounts
5
10
15

[Jughead]

My 401 K offers something similar. I will never "annuitize" it as my plans payout is based on the 10 year Treasury and in the fine print it says your monthly check may vary! WTF? I thought once you annuitize the check should stay the same.

Plus once you annuitize and schedule a payout the balance stops growing! At least mine does.

I plan to take out the RMD, or a little more at my choosing, when I want and let the rest grow in the assigned funds. Or I'll do a 1035 exchange and transfer to my eTrade IRA.

[ratflinger]

Married




To survivor
0
50%
75%
100%

Or pick a term the employee survives/ the SO would receive decreasing amounts
5
10
15


You'll have to take a reasonable guess at how long you realistically expect to live and the same for your spouse. All of this against how much other money you have set aside, especially what she will have access to if you die. If there is going to be plenty for her (or you) then I'd take the max monthly payout. Cut it down to 50% or 100% match and then she dies a year after you then you kind of screwed up.

[GTOguy]

You'll have to take a reasonable guess at how long you realistically expect to live and the same for your spouse. All of this against how much other money you have set aside, especially what she will have access to if you die. If there is going to be plenty for her (or you) then I'd take the max monthly payout. Cut it down to 50% or 100% match and then she dies a year after you then you kind of screwed up.

This^^^. Like social security, it's a guessing game. How long will you be healthy? How long will you live? Etc. We all have different time and health windows.

[LATB]

I don’t have any company or government pension. :(