If a person voluntarily separate from the company as a terminee before retirement eligibility, are they eligible for the lump sum? Assume they are not on PIP. I’m hearing different stories from the Benefits Service Center. Last year, one person says no. Then on another call they said yes, but with restrictions. Now they are saying no. Can you please share your experience?
It seems that if there are changes to the pension, it should be printed somewhere with transparency.
How are the latest lump sum interest rates looking? 10 year treasury yields up to 1.75% now. Joe and the Feds are ki----g the golden parachute. The trend is not our lump sum friend. I need to get out before the lump falls. Is April 1 the earliest date for retirement now?
Info came by certified mail requiring signature
I just got my lump sum payout approved. If you take the cash or roll into a Roth IRA, it's taxed as income. If you roll it into a traditional IRA, as I am doing, it's not taxed until you start drawing benefits when you retire.
I was 7 years service, left for a better job and got around $80k based on 4Q interest rates.
Lump sum payout was available for voluntary non-retirees in Q4 if > 5 years. Takes about 3 months to process. Also keep in mind that pension projection interest rates change quarterly, which can change your lump sum payout substantially. I believe Q1 rates dropped which likely increased lump sum by quite a bit. This is based on public projections of pension interest rates, I do not know if that is consistent with XOM internal rates:
https://www.asppa.org/news/pbgc-issues-q1-2022-interest-rate-assumptions
You have 3 months to choose your election. I think there are 5 options, one being a lump sum that will auto tax at 20%. Expect it all to take 3-4 months. The folks on the benefits hot line called and gave up dates, pretty helpful actually. They will send a large physical package.
You can lump sum as terminee if your pension has vested (minimum 5 years service). Benefits pension admin will reach out to you and your election should be made within 90 days from separation.
I resigned outright late July 2020 with 18 years of experience and received the lump sum paperwork in September. Deposit check received early November, minus the penalties of course.
And you will get your paperwork from HR on day 88, lol.
What are people’s actual experiences with the paperwork to elect to take a Lump Sum? Did you receive it in a timely manner, and was it emailed or mailed to you? I don’t want to miss out on $100k+ because of clerical delays. Thanks.
@1ker+1eyKi3Ex
And you will get your paperwork from HR on day 88, lol.
You have 3 months post separation to elect the pension lump sum option.
Just in case you needed more proof that they want you to leave.
Take the money and run!
Goto/earlypension
The Late Career Planning Class presented by EYP for XOM says the policy on taking lump sum pre-retirement changed June 1,2020. Now any person can take lump sum pension pay out with them when they quit or are laid off. Took the class July 2021.