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Timing of payments


Guest Brownek

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Guest Brownek

How long does it take for a retiree to receive their first check (lump sum or annuity) after their retirement date in your plan. We are currently involved in a dispute with the company over this issue and comparative data will help our case. We are a union representing the pilot group.

Thanks.

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Karen L. Browne, C.E.B.S.

Benefits Specialist

Air Line Pilots Association, Int.

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No single correct answer.

It depends on a large number of factors, including

1. how much notice the EE gave the company of retirement,

2. how complex the plan is (such as whether the plan includes special benefits or minimums from a prior plan),

3. how conscientious the company is in processsing the paperwork,

4. how quickly the EE and spouse review the paperwork and decide on the form of payment,

5. how the first check is being paid (if using a trustee, how much lead time is needed before the check is cut).

I am an actuary. In my firm, we have a group of employees who are specialists at doing the calculations of all the benefits. But each one gets reviewed by the actuary assigned to the case. Of course, we put a higher priority on those that are retiring, but a substantial percentage of these don't get to us more than 2 weeks before the retirement date, and quite a few are received in our office after the retirement date, often because the EE decided at the last minute to retire.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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