Not talking about retirement eligible people but for non retirement eligible folks. Heard from many that they got lump sum when they left. Can you please share if you got penalized for lump sum ? Did they use discount rate from age 60 back to your age (say 40) @2%? Did they take any penalty for early lump sum? Thanks in advance, asking for a friend considering leaving with 15 year service but not retirement eligible ..
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All the information you need is available on the Employee website.
You should know that already.
All the below is gibberish.
For the information about the lump sum.... goto/pension and search “one time lump sum option for vested non-retirees”
This has nothing to do with the voluntary/involuntary seperation but a change in benefits.
July PIPed employee, not retirement eligible here.
The paperwork I received has a pretty significant discount to take pension before 65. It was a one time only offer for a discounted lump sum or to start a discounted annuity on Feb 1st (before I turn 60). .
At 64, it is a 10% penalty.
At 63, it is a 19% penalty.
At 62, it is a 27% penalty.
At 61, it is a 33% penalty.
At 60, it is a 40% penalty.
All the way down to age 50 where it was a 76% penalty.
The three segment interest rates on the paperwork were 0.52%, 2.27% and 3.09%
Being close to 60, I decided to go for it. Put the lump sum into an S&P Index 500 index fund in my tax deferred IRA and reinvest dividends. I think over the course of the rest of my life, it is likely that I will come out ahead.
As others have commented, I wouldn't assume you get the same option if it is a voluntary separation before becoming retirement eligible..
@dzj+19lIwDZs
Whats your source?
The plan summary says the lump sum is only available during special events, but when does that special event window end?
Leave now you can elect to take lump sum.
Please call the pension people from the pension website. They may know the answer.
Was the lump sum option only available for those that left during the "special" 2020/2021 event? Meaning, if a person leaves now, they wouldn't receive the LS option. Appreciate clarification as HR certainly has been absent from helping on these types of questions.
PIP’d here, received full lump sum. However, it would be worthwhile for this friend to confirm eligibility, as my understanding is that this option is only available as part of a company-initiated separation (ie PIP/layoffs), otherwise if you quit on your own then you would still have to wait until retirement age to receive benefits.
I have been trying to get my number from HR for 2 weeks. Each time it’s been me waiting on hold for 2 hours before I give up. I believe the present value calculation actually starts from 3 months following separation date, BUT you only get 20% of that lump sum calculation. If I was to take a SWAG at the number (because it is pretty close to my numbers), I bet it equates to roughly 1 year of salary. I’m taking mine to sink into my new startup company. No guts, no glory (yes, I’m not a good “fit” for Exxon, they pegged me correctly). I copied this from some HR separation document:
Please find below useful information regarding the One Time Lump Sum for Non-Retirees:
One Time Lump Sum option for vested Non-Retirees
If you leave the company with at least 5 years of vesting service, or age 65, you are vested for a pension benefit and you will receive a Benefit Commencement Package (BCP) with a commencement date (BCD) of approximately 3 months after separation date. This package will include a one-time lump sum option and will be sent to your home address the following month after your separation
If you let the BCP expire or you choose not to commence immediately after separation, any subsequent Pension benefit commencement packages you request will not include a lump sum option, and will default to the existing monthly options available to Terminated Vested participants, commencing your pension benefit once you are 50 or greater (early reduction factors apply at each age by commencing before 65).
What is the Benefit Commencement Date for the One Time Lump Sum option for vested non-retirees?
For those employees who are younger than age 65 at separation date, the BCD for this BCP will be three months after their date of separation. For example, if the last day worked is 02/01/2021 and the separation date is 02/02/2021, the BCD would be 06/01/2021. For vested non-retirees who are already age 65 (or greater) at separation from employment, the BCD is immediate (1st of the month) after separation.
How can I run an estimate of the One Time Lump Sum option for vested non-retirees in the projection tool?
Go to ExxonMobil Benefits Web (website link removed). You will be required to register by selecting a username and password, and also choose an image. Once you pick an image, you’ll select it each time you log in in the future.
After you have logged in, click on Pension Snapshot. Then, click on More. To run your own estimates, click on Model
In the field “What date do you plan to stop working?” input “Last Day on Payroll”; and in the field “When do you want to begin receiving your checks?” input “Benefit Commencement Date” (which should always be on the first of the month). Then, select the 100% lump sum option from the “Form of payment” dropdown.
Please, see examples for illustration purposes:
Last Day on Payroll: 02/01/2021 – Benefit Commencement Date: 06/01/2021
Last Day on Payroll: 02/03/2021 – Benefit Commencement Date: 06/01/2021
If you are not able to run the projection through the Online Pension Projection Tool you can request it by contacting the ExxonMobil Benefits Service Center at #
No, they gave the entire amount.
The discount rate is used only when you take the annuity (so that the annuity amount can be reduced compared to what it would be at 65.
The option to take the lump-sum, though one didn’t have 15-years or/and 55-years of age - this rule change, was made in July-2020, and was a pleasant surprise!