Thread regarding ExxonMobil Corp. layoffs

Yes @1eln+18eWK8zW, the discount factor applies. I came in as experienced hire and PIPed at 59 without 15 years of service (don't feel sorry for me, I was never planning to stay 15 years anyway). To start the pension Feb 1st (either annuity or lumpsum), instead of waiting until I turn 65 would have meant a 42% discount. That is what the paperwork I received in November says.

@1xyn+18eWK8zW

If you’re under 50 and the pension isn’t adjusted for inflation, it is always worth taking the lump sum.

If you are vested but still not retirement eligible and you begin taking the annuity, there are significant discount factors applied and you would get significantly less than you would if you waited until 55 or 60. For those let go, do they still apply the discount factor?

“How much is the pension worth with 5 years with the company? Worth taking the lump sum to invest it myself?“

Depends on the annual salary & interest rate for Q1/2021.

Best option:
Set up a standard IRA with a trusted fiduciary financial advisor - maybe should can also manage it for you for at least a while.
Have lump sum check made out to the IRA. No tax, no penalty.
(Note: They will mail it by standard unregistered mail to your home address. I know one person had a S1.2M check in the mailbox on a rainy windy day.)
This will be a nest-egg.
Keep an eye on it and move on with your career.

Alternatively - get the Lump made out to you (with tax/penalty) .
Cash it and have a great 2-week 'Leaving Houston' experience. or whereever.

How much is the pension worth with 5 years with the company? Worth taking the lump sum to invest it myself?

The final tax, if you cash out, depends on the annual income for next year (plus the 10% early withdrawal penalty).

@1ezf+18eWK8zW

They give option to roll it into your 401(k) account (you should maintain a balance there). Else you can roll it into your IRA (to protect against tax + 10% early withdrawal penalty). You can also cash it out but the law demands that they will hold 20% tax and the early withdrawal penalty is your responsibility. Hope this helps.

I assume you qualify for this only if you have been with the company for more than 5 years, correct?

Can someone shed some light on how this works? Can it all be rolled into a retirement plan to be tax protected? If you get the lump sum as a deposit into your bank account, what' the tax rate, or is it just considered part of income for the year you cash out? Thanks for any help folks can provide.

I was PIPed in July and they proactively sent me the paperwork by certified mail in November. I am late career but was not retirement eligible. They want a decision 35 days in advance for a Feb 1st payout.

This is the thread you alluded to.....

https://www.thelayoff.com/post/@OP+1823MV8U

For those that were let go in July, I believe the date is in Feb before which one needs to submit the documents. They should have sent the papers already.

You are given a one-time option to take out the lump-sum, if you are vested.