Monthly pension payments are a fixed dollar amount. They begin at retirement and last until a retiree's death. Some plans offer a survivor's benefit for a living spouse. A lump sum distribution is a one-time cash disbursement at retirement. The retiree is solely responsible for managing the ...
How was the lump sum calculated? How does the value of the lump sum compare to the monthly annuity? What are the pros and cons of accepting the lump sum? What are the tax implications of taking the lump sum? What role does the Pension Benefit Guaranty Corporation (PBGC) play? What leve...
plans with a lump-sum option have three choices regarding the value built up in the plan: (1) take the benefit as a lump sum and invest the proceeds, (2) use the lump sum to buy an annuity from an insurance carrier, or (3) elect the annuity benefit available inside the pension ...
“A separate development that overlapped to some degree with the beginning of a decline in DB pension plans was a change in how the benefits were paid to retirees or terminated vested workers and their beneficiaries,” the report explains. “As an alternative to the monthly annuity benefit these...