Company Retirement Pension Questions

Discussion in 'Retirement & Leisure' started by Frank Sanoica, Mar 31, 2016.

  1. Frank Sanoica

    Frank Sanoica Supreme Member
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    Many folks living in Churubsco, Indiana, were employed by two Dana Cororation Plants there. I met my new wife-to-be while we both worked in one of them. I was hired as Facilities Engineer after having left Dana 6 years earlier. They pickedup on my seniority where it left off when I quit the first time. I was on Management Payroll, my wife was hourly, a Union Contract Employee, for which group a separate pension plan applied.

    Her younger sister and her husband also worked there, for Dana, also hourly. We both left Dana bound for Arizona, where I hadbeen offered an excellent position. Her sister and husband remained working in IN until eventually, both plants were closed-down, the larger of the two in about 2005.

    Here's the question, specifically: Wife's sister and husband were notified by Dana they were elibible to choose either a lump-sum buyout on their pension plans, or to take monthly payments. Obviously, monthly payments are begun after retirement age is reached, would that be correct?

    Her sister revealed they both took the lump sum option, and it would appear this occurred well before retirement age for either of them, while they were in their 40s. Would this be a typical circumstance, receiving a pension benefit early? Thanks for any ideas! Frank
     
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  2. Ken N Louis

    Ken N Louis Veteran Member
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    The lump sum would/should be put into an IRA or pay a hefty income tax penalty.
     
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  3. Frank Sanoica

    Frank Sanoica Supreme Member
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    Wondered about that, too. I should have added an answer before someone says, "Why don't you just aske them?"

    They are undergoing a rathermessy divorce proceeding now, and my wife & I feel it is a bad time to ask questions. :rolleyes:
     
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