Which is better considering the taxes on the cash out?
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Be sure to do your research. You can wait to draw your pension until retirement as previously stated. However, you are required to take your pension immediately if you want to continue any group medical benefits you may be eligible for.
I just got a summary regarding the pension, and the amount of money in the pension is incredibly high. And there is more than enough money in the pension to cover current liabilities. So the pension is well funded.
First, the pension is not being terminated. Secondly, even if it were, they cannot take away what you've already earned, but no, they're not going to "lump sum" it either (they could offer to buy you out, but there is no indication they are doing that as part of this lay-off and you are under no obligation to accept).
As before, you can wait until retirement age to draw your pension. The difference of course is that your pension amount at that time will be for an employee at whatever your tenure happened to be when you were canned.
Are they doing lump sum for the pension when it terminated
QTD is qualified termination date. If you are just quitting on your own terms then yes you can extend Pension, although I'm not sure if will have that much of an impact
What's QTD? Quit Date? A forced layoff day?
This depends on if you have a QTD set or not. If so, you can't extend your time served and increase your pension past the QTD day, even if you have the PTO it will automatically be cashed out at that date. Any remaining PTO you have can only be used up to the QTD.
I don't understand the advantage of cashing out PTO, unless you are old enough to be grandfathered into the program that lets the cash out amount be factored into your pension. If you use up PTO (if this is an option) it will extend your time of service and increases your pension. Plus you get paid while on PTO so you get the money anyway. You may even earn a few more days PTO while on PTO. You get to keep your other benefits a little longer, too. Unless you have no emergency money set aside, I don't think a cash out is a good choice.
Cash out! Even with taxes, you will get some money. If you use your PTO before, you get nothing. Save up your PTO and factor it into your severence package.
I do not think they offer you a choice. I think they cash you out and then you are off the books for salary for health benefits and your pension value is now fixed based on your current numbers
Cash it out. If they over-tax it, you'll get the excess taxes back at tax time next year. You wouldn't want them to undertax it or you'd owe.
Unless you have another job to go to when you leave the Farm, I recommend cashing the PTO out. Yes, there are those that will argue both sides and the middle of the tax issue, but bottom line, the cash will come in handy while you don't have an income. Also, being a realist, will you leadership let you take time?