What happens to Pension and 401k ? Are our pensions safe in these conditions ?
Can we take out lumpsum pension money ?
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Thanks a lot for the info. Excellent comments
Do what you like. I took the lump sum 6 years ago, and my broker increased the amount by 30% since then. I feel better that I have it then letting COP keep it.
If the retirement plan is funded beyond the 80% level, then Lump Sums can be paid. Once funding of the retirement plan falls below 80%, by law COP will not be able to pay Lum Sums. Funding occurs once a year, and COP is under no obligation to keep it topped off above 80%. Having said that, they have kept it topped off in the past years, but considering the whole market has tanked right along with oil prices, COP may find it more challenging to fund, remember they will pay the dividend first! For those looking to get their Lump Sums in the near future, I would pay close attention to the funding level and announcements and plan accordingly.
ConocoPhillips pension is a defined-benefit plan. Rate of return is not a factor in a defined-benefit plan. Regardless, the more idiots that cash out the pension the less risk for those that do not cash out the pension.
COP pension has a really bad rate of return. Definitely roll it over to an IRA.
ENRON brought about major changes in corporate pensions. The noted Annual Funding Notice for the ConocoPhillips Retirement Plan will indicate the sources of funding. The ConocoPhillips pension is not part and parcel of ConocoPhillips or ConocoPhillips stock. ConocoPhillips could go under and the pension would remain.
Pensions, Severance Packages, Dividends, and Executive Pay?? COP does have the cash to pay all of this?? Remember ENRON!! This company is imploding!! The sky is falling!!
Thanks for clarifying
Yes financial advisers do hate pensions. The financial adviser makes money churning your money. Pensions just sit idle and wait for you to grow old. Pensions pay out until you die. Ideally a mix of Social Security, pension, 401K, home equity, greeter at Walmart, etc.
Yes the pensions are safe (enough). Search for Annual Funding Notice for the ConocoPhillips Retirement Plan to find the same information received via mail. Pensions are few and far between. Not financial advice, but unless you are planning on an early death cashing out a pension is nuts! Financial advisers hate pensions.
EOI
Thanks
You can roll them over to an IRA. I believe that the pension is only 80% guaranteed.