Looks like we're in historical low pension segment rates. Novermber/December should be a great time for taking lump sum pension
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I wonder if the little popcorn "rotflmao" girl is going to take his/her tiny little lump sum this go around. They deleted the poor little child's post, I bet he is jealous of anyone who has a 6 figure lump sum, lol No reason to be jealous, lgbt dude, you may still be able to afford a 24-pack of your favorite pee to drown your sorrows.
If you are over 60 there is not many good arguments to wait as interest rates can not do too much lower and they can sure go up!
As long as CVX offers the lump sum option, you can take it whenever you want. Doesn't have to be soon after you retire. That said, not sure the interest rates can go much lower. Also, remember that the 2nd and 3rd segment rates are the ones that affect the LS payout the most.
@1ycj, that's true, no doubt. I also suspect that those folks with that much time in and those numbers would not be found wasting their life away trolling and posting on thelayoff.com. but that's just a hunch, lol.
10 years from now the little extra in the lump sum will not matter. The future impact will depend on how it is invested over the next 10 yrs and your withdrawals.
Lump sums can be large. Take your salary. Divide by 3. Multiply by years of service. It doesn’t take a huge salary to get a million dollars with three decades of service. Some of our leaders have 35 years and salaries near seven figures.
@1unw, Please continue with your laughably large lump sum and multi-millions fictitious piece of comedy. It provides much needed entertainment as we have to battle the virus related shut-downs. Don't stop now, make up some more tall tales, we all wanna hear!
Remember, you can delay the timing of receiving the LS a few months if you think the rates will continue going down.
Would a Sept 1 LS payout use the prior 3 months rate average of June/July/Aug? Not May/Jun/July?
I agree. Between the generous severance package and interest rate crash, you could be looking at half a million dollars or more bump to EOI now versus someone who retired last year or waits a year. Think carefully, possums!
If you look at history, these are the lowest rates ever and thus the largest lump sum. Amazing timing!
What you do with it is entirely your business. I know people who have used it to buy their dream home. Most probably just roll it over, buy VTSAX, then start annual Roth conversions to avoid ever paying income tax on it.
1nhn: Don’t you worry, my projected lump is just a small part of my total wealth. That said, with a projected payout of well over a Million bucks it is worth paying attention to the details.
Nice that rates are down n LS is up. But, more important in the long run will be timing of investment in the market and how it is invested.
Please don't take this the wrong way. but I don't bother with the interest rates and the lump sum or annuity much, because I have done much better in my investment accounts over these years and that number easily dwarfs the lump sum by a long shot. After 29 years at Chevron. When I see comments like this, it makes me think that people have been ignoring their investment accounts, and expecting the CVX pension to take care of their entire retirement budget., like relying on the nanny state. I hope that I am wrong.
Yes this could be the perfect storm of good timing if you of an age close to retirement. Half again more severance than expected. There will very likely be historically low interest rates until at least EOY (boosting the lump payout) and the vaccine will likely not be available until after the new year so you have time to get that lump invested before the expected post virus market bump up. Just remember to provide HR your real SS numbers if you made less during your career than the industry full time average for someone at you final grade and get that lump into an approved IRA ASAP after the payout (or better set up a direct roll in advance with Fidelity). Good luck with your EOI (or new position in Chevron) everyone.
Make sure to wait about 55 days before signing the severance package agreement otherwise the severance payment will occur in 2020 not 2021.
yes the lower the interest rate the higher the lump sum.
they use a rolling average of previous 3 months interest rates...for example, Sept 1 payout based on May/June/July and each month has, and is been low. My Sept 1 payout calc was $50k more than Aug 1, and now Oct payout, shows increase of ~$30k; thus in this case, more $$$ as you go further. First segment rate is currently below 1%...if you look at interest rates each day and get an idea as rates fall, lump sum goes up...use the online benefit pension calc tool
You could use those funds to take some middle-school level English spelling and grammar courses. win-win!
https://fred.stlouisfed.org/series/DAAA#0
Could you please elaborate more? I am interested.