Does anyone know what happens to a pension if you leave before the unreduced collecting date?....say for example you have been vested but still have a few years before the un-reduced thing?..is it all lost or you still get some as lump sum?...thanks
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You should call benefits. My recollection is that if you reached the vesting period, then you should receive a pension based upon the total years employed (except mgmt. since it was frozen Jan 1 2008). If you do not have the magic 75 points or 30 years (with the years of service and age previous notes), you will be able to start collecting at 65 years of age.
Again, Good luck.
Thanks to all who tried to explain!....just got a job offer outside vz but a coworker told me I could lose the pension if did not meet the 75 point thing....Need another 5 years to reach the 75....or reach the un-reduced early commence date.....but thank you all...I will try HR.
Three of the previous responses provide good answers, particularly calling benefits or using the modeling tool. The third response also provided some good advice, however there are some caveats that need to be cared for. Are you single, married or divorced? Also you can be both married and previously divorced so that plays into your calculations.
When I was going through the VSP, the choices were full lump sum, partial lump sum + annuity and full annuity. There was also various annuities based upon survivor distribution choices.
If you are married or divorced, you significant other or previous partner must sign off on your final decision.
My advice is to use the modeling tool and then call benefits to confirm the options. They may advise you of terms that you were not aware of when you were making your calculations.
Also prior to making the final decision, I strongly recommend you discuss any potential decision with both a financial planner and tax preparer. Remember Ling John's response in Russell Crowe's version of Robin Hood - "A Tax is Due!!!".
Your question is very unclear and the replies other than the one suggesting you call the benefit hotline are ill informed. I can attempt to answer what I suspect you are asking. Firstly your pension money is absolutely earned and your money. It is classified as deferred compensation (compensation earned but held for future payment to you once you meet the plans dispersal requirements). Anyone telling you otherwise is a liar and or a misinformed fool. A pension isn't given to an individual it is earned. I invite you to peruse the PBGC website it explains all your rights under the law. That being said you cannot access YOUR money until you meet the plan requirements for dispersal. The minimum requirements vary by age and years of service and go as follows
30 years of service any age no penalty.
25 years age 50 with a penalty of 6% per year under 50 this equates to a 30% penalty on your 50th birthday that is reduced 1/2 a % a month until you either hit 55 or complete your 30th year.
20 years of service age 55 no penalty.
15 years age 60 no penalty.
10 years age 65 no penalty.
It is really as simple as that either do 30 years or meet both the age and service year requirements to be penalty free. The number you see on the company website is the amount due you on the three upcoming dates listed. Penalty or not those numbers are the
actual amounts you will get on the listed dates with a small
margin of error.
Most people I know got a few grand more but within about ten grand of the stated amount for balances in the 700k to 800k range . Anything estimating beyond the next 3 months is a guesstimate, as one can only ponder what rates will be beyond that.
I believe you are asking about a circumstance where one is over 50 without 30 years. In that case the person eats away at the penalty as stated above at 1/2 a percent a month until they either turn 55 or complete their 30th year. Go on the company site do a lump sum estimate what it tells you you will get next month is essentially what you will get. It is what you have earned up to that date.
He's referring to a under 55 6% penalty per year under 55 maxes out at 30%. Lighten up the number you see in benefits connection is with any penalty already
You don't know what you're talking about. First off, the pension is not money you've put in, it's the company's money. Second, there's no such thing as unreduced collecting rate
Call the 1(800) benefits # they will explain it to you.
Use the modeling tool on the benefits site.
I have no idea what you are talking about.. they can't reduce your money you put in. Nor take from your funds unless you have been there less than 6 months I believe.