From my experience, if you are laid off immediately roll over your pension. There are yearly deadlines and you do not want to miss one. You can roll it over to an IRA were you should be able to get a much higher rate of return. You can do the same with your 401K, although Vanguard is an excellent provider. Do not forget about your retention stock. Regardless about your feelings about COP, there are many stocks, bonds, ETFS, mutual funds, that offer better performance than COP stock. The COP severance was excellent and allowed me to survive until I found a new position.
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Testing.
Probably hicks/red necks from LSU.
There was some confusion in terminology. xjx explained it correctly. People were referring to the cash balance account as a pension. Still, the message and intentions are both helpful and clear. If you are laid off, transfer it to an IRA to achieve a better long run rate of return/interest. The negative comments here perfectly illustrate the fu**ed up state the company is in.
Finally an answer from someone that actually knows what they are talking about!
Sounds like some confusion on terminology (and intelligence). A true pension, like the heritage Phillips and Conoco Title 1 benefit (and not available to those hired since around 2000) is funded by a separate foundation, does not accrue any investment return, and pays either lifetime monthly benefits or may usually be taken as a cash lump sum, subject only to current income tax liability. What others seem to also lump under the "pension" label includes both 401k and the cash-balance plan. You can leave your 401k with a company even after ending employment. If not, you can roll it over to another tax-protected retirement account, like an IRA. If you cash it out, your divestment will be subject to both your current income tax bracket rate and to a 10% early withdrawal penalty (if younger than 59.5). The cash balance plan (what most employees hired since 2000 have) has a value based on a percentage of your monthly salary plus interest on the existing balance--and that interest is based on the 30 year T-bill, not any market investment scheme. Assuming you are vested (3 years employed or laid-off), you can get your benefit as a monthly anuity or as a lump sum. If you elect not to take payment, you still get interest added to the balance.
@vvs are you retarded? Pensions do not earn a ROR? You have got to be the stupidest drone I've ever read. It's no wonder you will be working for the rest of your life just to retire. Please do some homework before spewing your puke you dumb inbred.
The original poster is very right. Not sure who this ID10t is who this leaving it at vanguard is right. Right it is funded but it is base on a cash balance. It is not a guaranteed return. Move it out and make more and have it in your control.
You must rollover! He who does not is an idiot.
IzlGocz-vvs - Your knowledge of investing is illustrative of why COP is in so much trouble. The performance of the COP pension plan is pathetic. Over a 10-30 year horizon, overall returns will be substantially better in an IRA. However, it depends on risk tolerance. I only assume you are a "low risk - low return" grandpa type. Over the long run, an average managed IRA will earn close to a 10% rate of return - much better than the COP pension.
No, do not roll over the pension. Pensions are few and far between. The ConocoPhillips pension is not part and parcel of ConocoPhillips. The ConocoPhillips pension is well funded. Pensions do not earn a rate of return. The original poster is a fool.