Interesting push for pension over lump sum

[duck__dodgers]

>>>Getting a little off topic, I was/am interested in the phone call I got. Is the guy supposed to represent me, a fellow employee, or the State?

Unless it's your (who you are paying) doctor or attorney or someone registered with the SEC (like investment adviser), trust no one---especially when dealing with any financial company---no matter how many letters they have attached to their name, lol.

Honestly, if you are getting bad vibes, you're better off taking a time out and asking random peeps here for a 2nd opinion (even if they are a doctor, lawyer, Series 7 rep, etc.).

 

[Sj08]

>>>Getting a little off topic, I was/am interested in the phone call I got. Is the guy supposed to represent me, a fellow employee, or the State?

Unless it's your (who you are paying) doctor or attorney or someone registered with the SEC (like investment adviser), trust no one---especially when dealing with any financial company---no matter how many letters they have attached to their name, lol.

Honestly, if you are getting bad vibes, you're better off taking a time out and asking random peeps here for a 2nd opinion (even if they are a doctor, lawyer, Series 7 rep, etc.).

Not getting bad vibes, just interested in why I got a call I didnt ask for, and beyond belief just how pushy the guy was.
Funny thing is 2 days before that, I got a call from a nice lady letting me know they recieved my forms, and simply said she wanted to make sure I wanted to vow out of the pension, I told her yes and she said ok just want to make sure you know that you wont see your rollover for at least 60 days after last payment recieved, said some people keep calling asking where thier money is.
Mabey she was too nice and didn't get the results someone higher up wanted, so they sent the heavy hitter after me.

 

[ATex7239]

Not getting bad vibes, just interested in why I got a call I didnt ask for, and beyond belief just how pushy the guy was.
Funny thing is 2 days before that, I got a call from a nice lady letting me know they recieved my forms, and simply said she wanted to make sure I wanted to vow out of the pension, I told her yes and she said ok just want to make sure you know that you wont see your rollover for at least 60 days after last payment recieved, said some people keep calling asking where thier money is.
Mabey she was too nice and didn't get the results someone higher up wanted, so they sent the heavy hitter after me.

None of this shocks me.

It wouldn’t be much different with a privately held account. They don’t want you to take all your money out. I heard of plenty of people who cashed out invests and got the sales pitch to not so. Anecdotally the institution who manages my employer sponsored retirement accounts is always calling and spamming me to use one of their advisors. Funny I don’t remember getting those types of calls when I was first starting out and the balance was small. Been putting into it for years and finally got some zeros behind it. Now all of a sudden I need their advice; provided for a meager percentage or fee I’m sure.

 

[K-Man]

I believe that is for private pensions - which really aren't guaranteed at all - not state pensions.

State's have no legal way to default - because in theory they can just collect more taxes. The problem of course are in states that have made huge promises, the bill is so big they have to cut back on services for the rest of the population. This will come to a head at some point.

I think you're right about the state pensions. I was thinking of private employers exclusively when I made the previous post.

It didn't happen that way with the city of Detroit, which is paying retirees pennies on the dollar for their pension payments. This isn't meant to be a political matter and please don't make it one, but some state and city government plans are as shaky as are many of those in the private sector. The state and city employees tend to be oblivious or they believe that the pensions will have to be fully funded regardless. Those who had worked for Detroit found out that isn't necessarily true. There would seem to be little to stop cities from transferring pensions to insurance companies either.

 

[SC Maintenance]

I think you're right about the state pensions. I was thinking of private employers exclusively when I made the previous post.

It didn't happen that way with the city of Detroit, which is paying retirees pennies on the dollar for their pension payments. This isn't meant to be a political matter and please don't make it one, but some state and city government plans are as shaky as are many of those in the private sector. The state and city employees tend to be oblivious or they believe that the pensions will have to be fully funded regardless. Those who had worked for Detroit found out that isn't necessarily true. There would seem to be little to stop cities from transferring pensions to insurance companies either.

I am in no way inferring state pensions, or even federal pensions, are un-breach able. They just don't get dumped to the Pension Benefit Guarantee corporation. Well at least yet

The above mentioned PBGC is a entity created by the federal government that assume control of pension contributions for companies that went bankrupt. Since there usually underfunded the pensioners only get a portion of what was promised, which is usually decided by the bankruptcy judge.

Cities can declare Chapter 9 Bankruptcy under the law - which is what Detroit did. So yes, city or county or whatever pensions are not guaranteed either. What happens to them again depends on what the judge decides I guess.

States on the other hand have no provision to declare bankruptcy because under the constitution their sovereign, and hence there is no legal means. However they can just choose not to pay, and there is no recourse - and states have done this. But the debt does not get discharged, and their credit rating collapses and there are other consequences - like if their failure to pay crosses state lines now a federal court could possibly get involved.

I am certain state(s) will default on their pensions somehow - there really is no other way out - unless like SC there is no real COLA in which case massive US inflation would also solve it.

 

[zzyzzx]

Anecdotally the institution who manages my employer sponsored retirement accounts is always calling and spamming me to use one of their advisors. Funny I don’t remember getting those types of calls when I was first starting out and the balance was small. Been putting into it for years and finally got some zeros behind it. Now all of a sudden I need their advice; provided for a meager percentage or fee I’m sure.

I also get these annoying calls and spam emails.

 

[Dave Hess]

For my pension I will do a lump sum rollover into an IRA.

At my job I have a traditional pension, voluntary pension and 401K.

 

[Dave Hess]

I am in no way inferring state pensions, or even federal pensions, are un-breach able. They just don't get dumped to the Pension Benefit Guarantee corporation. Well at least yet

The above mentioned PBGC is a entity created by the federal government that assume control of pension contributions for companies that went bankrupt. Since there usually underfunded the pensioners only get a portion of what was promised, which is usually decided by the bankruptcy judge.

Cities can declare Chapter 9 Bankruptcy under the law - which is what Detroit did. So yes, city or county or whatever pensions are not guaranteed either. What happens to them again depends on what the judge decides I guess.

States on the other hand have no provision to declare bankruptcy because under the constitution their sovereign, and hence there is no legal means. However they can just choose not to pay, and there is no recourse - and states have done this. But the debt does not get discharged, and their credit rating collapses and there are other consequences - like if their failure to pay crosses state lines now a federal court could possibly get involved.

I am certain state(s) will default on their pensions somehow - there really is no other way out - unless like SC there is no real COLA in which case massive US inflation would also solve it.

Back in 2016 lots of Dallas police and firefighters were quitting on short notice and taking lump sum withdrawals from pension when they heard it was running low on funding.

 

[football]

I think you made a big mistake. I know several guys that took the lump sum and EVERY single one of them regret it big time.

Maybe should have listened to the smug guy that does this all day long and knows what he is talking about.

I know this comes across as rude but I honestly think you made a huge error.

If I took the time to dig into the actual numbers I may reconsider, lol ...

And I also work for the county and have a Florida state pension heading my way too. I also have Roth IRA, Traditional IRA, brokerage accounts, that I invest in.

I've had guys crying to me, that had to come back from retirement and continue working because the lump sum money ran out. Statistically, most do a lot better taking the pension. And most systems have beneficiary plans that will continue to pay your wife or kids if you should pass.

I can think of about 6 guys that I know took the lump sum and they ALL regret it. And many came back to work at the same place they left a few years later.

 

[tbm5690]

I can think of about 6 guys that I know took the lump sum and they ALL regret it. And many came back to work at the same place they left a few years later.

It sounds like they didn't properly plan. If they did, they wouldn't have to return to work. Their poor decisions doesn't mean that no one else should take the lump sum if they've done their homework.

I'm 35, planning to work until 65-70, and have a target number calculated, inflation adjusted, to support my wife and I in retirement from that point on. Everyone needs a plan.

 

[Sj08]

I think you made a big mistake. I know several guys that took the lump sum and EVERY single one of them regret it big time.

Maybe should have listened to the smug guy that does this all day long and knows what he is talking about.

I know this comes across as rude but I honestly think you made a huge error.

If I took the time to dig into the actual numbers I may reconsider, lol ...

And I also work for the county and have a Florida state pension heading my way too. I also have Roth IRA, Traditional IRA, brokerage accounts, that I invest in.

I've had guys crying to me, that had to come back from retirement and continue working because the lump sum money ran out. Statistically, most do a lot better taking the pension. And most systems have beneficiary plans that will continue to pay your wife or kids if you should pass.

I can think of about 6 guys that I know took the lump sum and they ALL regret it. And many came back to work at the same place they left a few years later.

I think that unless someone knows what the future will bring and how long we will live it's a calculated guess wich option is best.