TAKE IT NOW!!!
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https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/fact-sheets/your-employers-bankruptcy.pdf.....PBGC pays out benefits up to a monthly max. The monthly max is way more then what most of us will get as a monthly amt..so you will get your pension . so much mis info here its rediculous
Agree with the last poster but keep in mind the funding ratio doesn’t decline as quickly as most think. Every withdrawal reduces the total liability too, not just the cash.
No one can decide what’s best for you.
That said, if Xerox was to go bankrupt, pension plans in the US are way down the list of creditors. That’s why most pensions end-up with the PBGC. Under PBGC, all pensions are paid-out on an annuity basis and, on average, a person will only get about 60% of their initial value. You also may want to look-up Carl Icahn and Pension plans as he has a bit of history with them.
Putting that all together, I am taking out my pension funds as soon as possible as I expect RIGP to fall well below 80% in the next reporting period and Xerox going bankrupt is a possibility within the next few years.
From relatives that work at Kodak and got shafted when they didn't take the lump sum, you want to take the lump sum. But as a financial planner first.
If you were hired before January 1st, 1990 your TRA balance (or the larger of the two) will always be paid in full lump sum assuming you are not wanting to do an annuity. After January 1st, 1990, if the funding level is adequate then you can do a complete lump Doebelieve if it’s funded at 80 percent then it’s half lump sum and annuity. Below 50 percent funded it’s only an annuity. If you go to the xerox benefits web site and your retirement shows you can have the full lump sum either you were hired before 1990 or the funding level is adequate.
One of the benefits of being moved over to HCL was I could move my 401K and pension outside Xerox’s control. For most situations, lump sum option is the best one.
Valid question. Get qualified professional advice on this, tailored to your situation: employment attorney and/or certified financial planner. Then do what is best for you. And you'll sleep better.
Why would you ask a question this important here? BTW, your ability to get the lump sum can be limited by the funding level. Calculated annually.
TAKE IT NOW!
Go-Go’s
Google has he Pension Benefit Guarantee Corporation. At least a portion of your pension is guaranteed through this government program. But there are limits & we don’t know what the government will do with it in the future. I would talk with a financial planner & make an educated decision based on your situation.
Goes.