Pension buyout
- Thread starter Shecoope
- Start date
You so know that's retirement money?
yeah.
6 pt yrs. My paperwork shows an annual payment of about $12,000 payable at 65 yrs old. Likewise, they're contributing about $9/ hr worked for the annual bump up. It’s going up some $1500/yr for every year worked.
It’s all supplemental with my other income sources. But I do wonder sometimes what my lump sum would look like. I’m thinking $5k-$10k would be their offer to rid me of any future liability. But now I’m wondering if that’s too high.
This lump sum talk is a bit new to me. I didn’t realize they did that. We had a guy who almost quit at 4 yrs 9 months. We told him to stick it out. If anything in 30 years, he’ll have $10k/yr. But he was young. He did stick it out. But He may have taken a smaller lump sum in the mere $2-3k range. You’re almost better forgetting about it forever and see a nice surprise at 65.
I’ll need to do some math. From all my hours worked and see what the lump sum would be. They may be contributing $8-9/hr to the pension but offering you $1-2.
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If you are under 5 you get nothing because you aren't vested
Did you take buyout offer
UpstateNYUPSer(Ret)
Well-Known Member
Keep in mind that you only have 60 days after you receive the check to roll over any or all of it to avoid the 10% penalty and reduce that tax hit.
You should have done a direct rollover and avoided all of that mess.
UpstateNYUPSer(Ret)
Well-Known Member
Do you really think the kid cares about any of that?
"It's my money and I want it now!!" (regardless of how stupid it would be to not roll it over.)
sailfish
Master of Karate and Friendship for Everyone
For a rollover they send you a check written to your finance manager. I don't know anything about payout direct deposit but I'm still waiting for them to review my proof of age before we can proceed.
How long has it been ?
sailfish
Master of Karate and Friendship for Everyone
Almost a week.
That stuff takes time.
Smart move. You would have probably bought baby dolls anyways....
Wally
BrownCafe Innovator & King of Puns
Was there much difference between investing the buyout or staying in?
sailfish
Master of Karate and Friendship for Everyone
First off, they're not baby dolls. Second, I only buy one, maybe two new ones in a year. And third, with the exception of the asian ball-jointed type (which make up a very small minority of my collection), they don't cost anything remotely close to that much.
So shove it.
sailfish
Master of Karate and Friendship for Everyone
With a compound interest calculator I estimated the buyout amount alone to be worth over $200k by the time I'm ready to cash out. If I were to take the monthly installments at 65, I would have to live to over 120 to receive the same amount. And that doesn't even take into consideration the tax on those monthly installments.
I already submitted the documentation in online and It says complete just waiting on the funds to hit my account it should be soon fingers crossed
sailfish
Master of Karate and Friendship for Everyone
Are you taking the full amount in cash?
UpstateNYUPSer(Ret)
Well-Known Member
Yes, he is. He is going to kick himself in the butt when he files his taxes next year.
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