I have over 20 yrs in not yet 50 though. I am also on the old plan. Has anyone gotten a lump sum for retirement on the old plan?
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The people on old plan at least here in phx.
They have been offered a lumo sum when they leave . It was equal to 6 years at max payment. Not a good deal.
Stay strong!
Honeywell is a wonderful company that continuously reinvents according to economic needs. I was employed for 25 years and I immensely enjoyed my job and years of service. I endured many RIF’s, due to the fluctuating economy, and I would encourage you to learn how to survive. Focus on your responsibilities and how you can contribute to make the company better.
Wishing you all many years of success!!
I am wondering the same thing. I’m on the old plan and I now that the old plan isn’t eligible for a lump sum, but I wondered if If anyone has been offered one or asked for one. Those that said you got a lump sum were you on the old plan?
Listen to Sasha. Fiduciary. Make absolutely sure of that. Also make sure they don't have other non-fiduciary "licenses" that they sneakily try to sell you mutual funds through. And if they start talking about annuities, run for the hills.
My recommendation...
Look for a financial advisor that is a fiduciary. They truly have your interests 1st. We've been working with one for over a year to ensure HW pension and rollover IRA (HW 401k) are working for our interests.
Old retirement plans are not lump sum eligible. Only the new plans that started around 2000 have a lump sum option
Best advice: see a financial planner before you decide to get a professional opinion. Big firm preferable in my opinion. Big bank or brokerage. They should provide you good information for free or small fee. Worth it so they can point out some factors you may not have considered for either option so you can make a better decision. You will be stuck with the consequences so best to get some input before deciding.
Also, write down questions before you go in so you don't forget to ask them while you're there. Ask the people who are trained in this business then make your decision.
Not advocating one way or the other, but by taking the lump sum, you have complete control of the money. Given the economic climate these days, who knows what might happen if Honeywell is holding the pension funds. The pension could become underfunded due to a downturn, or you could get screwed over if they decide to restructure the company or sell of pieces and they figure out a way to minimize their pension obligations (and they will figure out a way).
On the other hand, it is difficult to get a reliable 6% return on investment these days, so leaving the money with Honeywell could be a better option.
Tough choice to make at this point in time.
Yes, I did a couple of months ago. I rolled it over in to an IRA. It is basically in cash due to the stock markets volatility. It is a pain in the a–. You will be asigned a retirement specialist to help you. Get on it A.S.A.P because they hold the money forever.
I'm in the old plan too. Lump sum is not an option for me. As long as I don't kick the bucket too soon the payments are better. I'm still employed here, financially capable of walking but enjoying the circus for now.
Similar situation. Got the lump sum but insisted I be paid in gold. Don't want any of that worthless paper money.