What can I do with a frozen pension?

**disneysteve** · 02-24-2018, 02:54 AM

I�m not sure I understand. If you still work there do you have any access to that money?

**skives** · 02-24-2018, 03:06 AM

Originally posted by disneysteve View Post

I�m not sure I understand. If you still work there do you have any access to that money?

No not that I could find. I went online to where my retirement stuff is and all I can find is the amount and the pension plan information which doesn't state what my options are. Our pension were frozen for some here 6-7 years ago and some got to keep earning benefits. You had to meet certain requirements which I didn't.

**disneysteve** · 02-24-2018, 03:27 AM

Originally posted by skives View Post

No not that I could find. I went online to where my retirement stuff is and all I can find is the amount and the pension plan information which doesn't state what my options are. Our pension were frozen for some here 6-7 years ago and some got to keep earning benefits. You had to meet certain requirements which I didn't.

So when you retire you�ll get a monthly payment of $180.

It is possible that at retirement you�ll be given the option of taking a lump sum payment. At that point you could invest that money.

**kv968** · 02-24-2018, 05:08 AM

I had a pension at work that was frozen as well about 7-8 years ago and there was nothing I could do about it until I left the company or retired. However in my case the company sold the pension (which was self managed) to an insurance company. At that point they gave us the option to roll the pension over to the insurance company and still be guaranteed the payments the pension was going to pay when I retired, start collecting the pension immediately or cash out the lump sum and roll it over into a rollover IRA. I went with the lump sum option but had the pension not been sold there was nothing I could do with it.

Your company may be different so I'd check but I have a feeling you won't be able to do anything with it at this time unfortunately.

**Thrif-t** · 02-24-2018, 01:52 PM

^Yep that was my experience too. While you are working at that place there is nothing you can do but wait, after you leave, maybe you have options. I say maybe because I'm not sure you can do anything with a stored pension unless they offer it to you.

My previous employer had a pension and I have a $300/mo benefit. I'm going to let it ride, turned down the lump sum. I know its not a lot but I figure it can be my mad money. Everyone wants to invest lump sums, but when the market turns sour, you might wish you had the monthly payment. What goes up must come down. We've been on a high for a while, what if next time around we ride a low for a long time? It's all about choices, I choose to know I will have my $300/mo guaranteed coming in.

**kv968** · 02-25-2018, 04:02 AM

Originally posted by Thrif-t View Post

My previous employer had a pension and I have a $300/mo benefit. I'm going to let it ride, turned down the lump sum. I know its not a lot but I figure it can be my mad money. Everyone wants to invest lump sums, but when the market turns sour, you might wish you had the monthly payment. What goes up must come down. We've been on a high for a while, what if next time around we ride a low for a long time? It's all about choices, I choose to know I will have my $300/mo guaranteed coming in.

Not a bad idea at all to "let it ride" and take the guaranteed monthly payment. I did a whole lot of thinking and figuring before making the decision of taking the lump sum.

I figured that if I averaged about 5-6% per year I'd have what they were going to give me when I retired and I figured I could do that. And so far, so good but you never know. I know that's about an average return so it would seem like a wash to keep the money in there but I'd rather have the money "in hand" and see what I can do with it. Almost like my "mad money" but right now instead of in retirement.

I mostly do a lot of option selling with my lump sum so the return and risk isn't quite as random as straight out buying and holding or trading. It also isn't as lucrative when stocks do really well either but it's more predictable and steady. It's more work than just buying and holding that's for sure but I enjoy it and I also have some buy and hold in there as well.

**Gailete** · 02-25-2018, 06:20 PM

I get a small, less than $100 pension via my ex-husband. His pension through the teamsters is on a watch list as it isn't generating enough income to keep afloat. From reading the paperwork that I get sent yearly, it looks like those that had retired, their pension doesn't get changed, but those still working won't be getting the same kind of money. I think it will really take a big problem for me to lose it, and I have no control over it. And even though he knew about it at the time of the divorse, when he let me know he was retiring and I remindered him about it, he was spitting mad! He didn't like giving me money, not even a dollar, when we were married, so he sure didn't like the idea that I would be getting money from his pension - making less for him! I was hopeing I could use it as 'mad' money, but it generally goes to groceries.

It is sad to hear about those who had been depending on their pensions to find that they have been desimated by bad managedment, bad investments, rules that make it hard to earn what is needed and all the other reasons that pensions get into trouble. When you work long and hard for a company, you should not walk away with less than $200 a month, assuming they even give that to you.

What can I do with a frozen pension?