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Personal Finance and Investing

Pobeka

(4,999 posts)

20. How well is the pension fund managed? Is it underfunded?

Reply to bif (Original post)

Tue Dec 13, 2022, 11:33 AM

Dec 2022

I had the same decision to make. Turned out the pension fund "excess interest" in good years was being taken by my company, which led to an underfunded pension fund (cause, duh, bad years happen too.).

Based on that, I chose the lump sum.

If the pension fund had been well managed, I would've stuck with the annuity.

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Question about collecting a pension or taking a lump sum [View all] bif Dec 2022 OP

This message was self-deleted by its author snowybirdie Dec 2022 #1

You can get snowybirdie Dec 2022 #2

KYN--Kayne Anderson is paying over 9% bif Dec 2022 #7

How much of that KYN 9% includes return of principal? It doesn't look so great at Morningstar progree Dec 2022 #11

I faced the same decision. My company offered an enhanced rate on the annuity, noticeably better MLAA Dec 2022 #3

She worked for a bank ages ago. bif Dec 2022 #8

Do you have to pay multigraincracker Dec 2022 #4

how is her health? lapfog_1 Dec 2022 #5

She's very healthy! bif Dec 2022 #10

Is there a Cost Of Living adjustment on the pension? Is the pension fund reliable over the long term Midnight Writer Dec 2022 #6

No COLA bif Dec 2022 #9

I had one of those small pensions and I cashed it in for the lump sum yellowdogintexas Dec 2022 #12

I cashed in mine for about 20k and... bif Dec 2022 #13

I would absolutely consider an annuity. A HERETIC I AM Dec 2022 #14

I already have an annuity bif Dec 2022 #16

Nothing stopping you from having more than one! LOL.... A HERETIC I AM Dec 2022 #17

Thanks. bif Dec 2022 #18

I am frequently astonished at the trashing of annuities here on DU. PoindexterOglethorpe Dec 2022 #22

My annuity has lost 23.3% in purchasing power in the last 6 years, due to inflation progree Dec 2022 #23

What I appreciate is the rock-solid dependability of the annuities. PoindexterOglethorpe Dec 2022 #24

So true, about annuities often being trashed here on DU. PoindexterOglethorpe Dec 2022 #25

I was offered a buyout at 62 for $104k, so far I have doc03 Dec 2022 #15

If she lives 20 more years and gets $290/month, that's a 6.148% annual average return progree Dec 2022 #19

How well is the pension fund managed? Is it underfunded? Pobeka Dec 2022 #20

After talking to our broker bif Dec 2022 #21