Expert: Allen - 1/27/2008

Question
I have 31 years with a national company that is about to be sold. I will turn 55 around the time the sale closes. The most recent annual benefits statement sent by the company projected my monthly pension earnings would be $957 at age 55, or higher at retirement in later years. Lump sum payouts are planned. Since I will be at the eligibility age at the time, can I expect this amount times the actuarial life expectancy? Or is their amount stated in net present value that will be "discounted?" Roughly how much might I expect in lump sum, given my life expectancy? Thanks.

Answer
The lump sum amount payable at age 55 will be calculated using actuarial life expectancy factors at that age. The factors are specified in the plan document and the amount you will receive at age 55 will be between $100,000 and $150,000.
I suggest getting the various choices from the plan administrator and writing me again.