Can company force me to take pension in monthly payments rather than lump sum I prefer? Now that I'm 65 and eligible for pension, company paperwork states lump sum option is limited to those with $20,000 or less in today's dollars. My pension is worth rouightly $39,000, and due to medical conditions and questionable future, the lump sum would be much more useful to me at this time than the $250 per month they are willing to give. Do I have recourse?
Country relating to Question: United States
Nothing. I must sign and return paperwork. Lump sum option is explained but in my form is listed "NA."
Hello and thank you for the question. I am sorry to read of this dilemma.
The company has to follow the pension policy
if the policy provides for lump sum payment, it cannot force you to take in payments.
it has to honor the policy as any other contract
If they wont honor the policy, threat of going to a lawyer and the labor board should get them to reconsider
If it does not, doing so certainly would
and a court on legal action can compel the full payment
If I can clarify anything, please ask me
Is that the case even when my pension is above the cutoff they have set for dispersing lump sums?
It depends very much on the policy
if they committed to distribute in full
they must do so
if they agreed only up to a cut off
then after that they arguably can break up payments above that cut off
I'm only asked to sign and accept their paperwork that sets in motion the monthly payment. If I cannot get the entire lump sum, I hope I would be able to at least get the $20,000 they state is the ceiling for lump sums to be approved. It is confusing.
You are right
it is a bit confusing but not too bad
they must honor what they agreed to
and if they agreed to pay 20,000 in lump
they should do so
their asking you to sign for a plan
is further proof they are trying to change it
as if it was a payment plan, you would not need to sign
That makes sense; certainly they have not begun the payments, and the paperwork is required first for any action.Thank you, I will pursue that course of action.
What I mean is, I will pursue the lump sum.
Kindly click accept for the answer
after if you have a moment, leave positive feedback
I appreciate it!
I shall do so. Thanks again.
Licensed attorney helping individuals and businesses
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