Tag: lump sum payment

417(e) Barometer

Mary Pat Campbell

Link: https://burypensions.wordpress.com/2022/05/24/417e-barometer/

Excerpt:

The 417(e) segment rates for April, 2022 were just released and two takeaways:

  1. 50 basis point increase in one month indicates that lump sums being paid out of Defined Benefit plans will be greatly decreased in 2023 from 2022; and
  2. The economy is in a recession similar to 2008-9.

Author(s): John Bury

Publication Date: 24 May 2022

Publication Site: Burypensions

The Labor Guide to Retirement Plans (I)

Mary Pat Campbell

Link: https://burypensions.wordpress.com/2022/03/22/the-labor-guide-to-retirement-plans-i/

Excerpt:

A book to educate labor people to argue for keeping their underfunded defined benefit plans with sprinklings of propaganda.

Yet pension plans cost governments less than 401(k)s for the same benefit amount. Most public pension plans are in sound financial shape despite media focus on the few that are not. (page 10)

At one point, I commented to a pension attorney that I didn’t think there were more than twenty-five people in the state who understood how the state employee pension plan worked. He agreed and then added that there were a lot more people who thought they did, especially politicians who were proposing reforms to it. (page 16)

Unless your doctor has told you you’re about to die, receiving a lump sum payment is almost always a terrible idea. (page 110)

Author(s): John Bury

Publication Date: 23 Mar 2022

Publication Site: Burypensions