8 Questions To Ask Before Taking A Pension Lump Sum Offer

Via Forbes,

By Ashlea Ebeling, Forbes

March 23, 2015

When it comes to analyzing a lump sum pension offer, employees need more help. That’s the conclusion of a new Government Accountability Office report, Participants Need Better Information When Offered Lump Sums That Replace Their Lifetime Benefits.

“Participants presented with a lump sum offer may not have a full appreciation of the range of risks involved in forfeiting their lifetime annuity under their sponsor’s plan,” the report says. Big employers started shedding plan liabilities after the great recession, and the trend appears to be accelerating. In a recent survey of 183 defined benefit plan sponsors, Aon Hewitt found that one-fifth said they were are very likely to offer terminated vested participants a lump sum window in 2015.

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