I submitted the completed application with my bank to transfer my DB pension to a Self Directed LIRA in November of 2020 and the money still hasn't been transferred over. Is this normal? How long does this process usually take?
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"Why on earth would you transfer out of a defined benefit pension plan? They are so rare in this day and age? How sure are you that you can do better in a LIRA?"
If you're still with the company, you can't transfer out. And if you stay past 55, you're locked in for life.
So you're 54, and asking yourself:
"Will the fossil fuel industry remain semi-stable for the rest of my life?
"Will the pension remain healthy enough for all payouts over time?"
"Will there be a run on the pension of signs of fiscal collapse plague the company?"
I faced this problem myself. So I sent the pension details to the company that manages my money, and they sent back a detailed analysis that indicated:
- Even if the pension remains viable, the math involves indicates (with certain assumptions about lifespan) that the two options, commute or remain, come out pretty close to even over time.
- If the risks do concern you, commuting the value disconnects you from worrying about the health of the pension, the company, and the industry.
But to leave the pension you would need to leave the company. That's one more wrinkle.
Anyway, that's why.
Second half of January. If you don't see it by then, open a ticket with myHR
Does anyone know when in 2021 those who chose to split their payout should expect their second/final payment?
I assume you left the company? If you haven't that's not an option.
I took one look at the paperwork to do that and did something I should have done a long time ago. Hire a wealth management firm. They made the problem go away.
They also rejiggered my portfolio and now I own stocks I hadn't considered... so far so good.