My pension lump sum is NOT as high as my coworker ? Does anyone know why? My co worker told me his numbers after 20 years and mine with be 50% LOWER after 20 years. I came from Geico in 2014? What am I missing.
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My wife left me. Should I leave 11/30 or 12/1?
You would have thought after the 2020 purge, more of you geniuses would have checked this all out ahead of time instead of waiting til the next eleventh hour. As you want your leadership to take accountability, you should do the same.
To the OP, your pension and your co-workers pension have nothing to do with each other. So many variables but the big one it seems like is you came in 2014, after FAP was grandfathered. Some on board prior to 2014, rolled their money to cash balance. Bad move
Correct. Contact HR.
Yeah, like we're going to trust what some "pension actuary" or whatever says over what an internet rando knows!
In contrast to the role that interest rates play in lump-sum calculations, pension annuities are not directly impacted by rate changes, said Linda Stone, senior pension fellow at the American Academy of Actuaries.
You have two choices on how to take your pension upon retirement. You can either take the lump sum (which will go WAY down in 2023 vs 2022..but may go back up in years ahead depending on interest rates). Or you can take a monthly payment (which will go UP in 2023 vs 2022).
Some folks can't manage a lump sum without blowing it. So if you retire when the interest rates are higher and take the monthly payment- that may be a good thing.
Nothing wrong with getting an Allstate check every month til you kick. And this has nothing to do with your 401K or Social Security.
Lower interest rates mean a higher lump sum but a lower monthly payment option.
Higher interest rates mean a lower lump sum but a higher monthly payment option.
If you are thinking about retiring in 2023- please contact a financial planner ASAP on your options.
I blame execs
You need 55 age and 20 years of service to retire. If you retire before meeting those requirements you have a substantial pension penalty
Best Advice: Use Pension Calculator. Understand under the ARP FAP formula rates are 2.5% higher next year than this year so add the rate when calculating estimated retirement date. My lump sum is dropping 22% if I retire in 2023 versus 2022
What’s the best way to calculate out to leave or stay? Use the pension calculator? Please be gentle with me in seeking help. I’m caring for a parent on hospice. 19 year employee. age 49 assume I would otherwise stay another 16 years unless laid off.
Many Allstate friends do not understand that the FAP lump sum will tank in value if they do not leave this year. The rates are going up which means the pension drops big. The ARP plan states
........... Before January 1, 2014, ARP participants earned benefits under one of two formulas (final average pay or cash balance) based on their date of hire or their choice at the time Allstate introduced the cash balance formula. In order to better align our pension benefits with market practices, provide future pension benefits more equitably to Allstate employees, and reduce costs, final average pay benefits were frozen as of December 31, 2013. As of January 1, 2014, all eligible participants earn benefits under a cash balance formula only.
It doesn't matter if you were hired before 2000 you are on the new plan now. They locked in that value and you are part of new plan.
Old timers have two different pension plans.
Personally they need to sunset pension is place of a yearly bonus plan. Nobody is looking to stay decades anymore to get a pension. People want money now not decades from now
I looked at the salary variance and it came down to the formula. All else being equal My cash balance is 50% -70% LOWER than the old FAP formula that was frozen . Great plan if you were hired prior to 2000
THANKS!!
I searched "allstate retirement lump sum" There are 2 plans and one froze in 2013. It states
................In order to better align our pension benefits with market practices, provide future pension benefits more equitably to Allstate employees, and reduce costs, final average pay benefits were frozen as of December 31, 2013. As of January 1, 2014, all eligible participants earn benefits under a cash balance formula only.
Salary variance?
THANKS!!
I searched "allstate retirement lump sum" There are 2 plans and one froze in 2013. It states
................In order to better align our pension benefits with market practices, provide future pension benefits more equitably to Allstate employees, and reduce costs, final average pay benefits were frozen as of December 31, 2013. As of January 1, 2014, all eligible participants earn benefits under a cash balance formula only.
I am 25 year of service employee and wondered the same with a friend fellow Allstate adjuster. We uncovered there are two retirement pension plans. I searched allstate retirement lump sum. One is Final Average Pay plan and the other one is a Cash Balance plan. I get the old plan and my associate hired 6 years ago gets the cash balance. At 26 years mine is 2x -2.5x bigger than his plan after he works 25 years. I know. Maybe this helps