Nightnurse

I have repeatedly asked for a copy of the plan but get no joy from the HR team or the actuary. I only have til 10/30 to accept the offer and no one can tell me what will happen if I don’t accept that offer other than the 8% decrease. The original opening date was In July, and at that time my offer was $4000 less than it currently shows. So the 8% reduction is even more confusing to me. thanks for opinions. Looks like I have no choice but to accept the offer, then investigate deeper to see if I am being short changed.

@maryflemingphr no they have not.

Worked 14 years 1997-2010, took lump sum from defined pension. Returned to hospital in 2016 at age 62 with intent to work until age 70. Was told I would need to work 5 years to be vested. In 2021 hospital was bought out and pension was frozen, employees were gifted an additional 4-7 years of vesting deep on age and wages. Moneys were give to an actuary and all employees are now being offered a window to receive a lump sum. I don’t want a lump sum. I had returned to work specifically to earn an annuity and expected that if I were offered an annuity of $1000 at ERA after 14 years at half the wages that I would now at double the wages and 8 years vested look forward to at least half of that. In addition my lump sum in 2010 was over $100,000. So I would expect a lump sum of at least half of that after 8 years vested at double wages. I was offered a tiny annuity and small lump sum. When I question it to the actuary handing the funds, this is the reply I got…. Can anyone here help me understand this? I feel discriminated against because I am over 65. and disappointed because I thought I could keep working and earn another pension to help me when I planned to fully retire at 71. Hello, This email is in reference to your recent question regarding your XXX Pension Benefit. The current benefit amount that would commence on 11/01/2021 is $14,589.23 as a lump sum and $127.86 as a life annuity. This benefit is less than your previous lump sum benefit in 2010 because of how the plan calculates benefits after a benefit has already been received. The plan states that if a participant is rehired after receiving a lump sum payment, and earns additional benefit service, their benefit is calculated as if no payment was made. The amount of the lump sum previously paid is increased with interest at 8% per year. Therefore, because of this high 8% interest rate being added to your previous lump sum during the calculation, your benefit is less than before. If you chose to wait until you reached age 70 your benefit would decrease to $0.00. This is again due to the high interest rate being added to your previous lump sum benefit during the calculation. If you have any other questions, please let us know. Thank you, I asked for clarification… and got this… We apologize for the confusion. Let us try to explain the offset better so it may make more sense.If a Participant is rehired after receiving a lump sum payment (which fits your scenario as you took a large lump sum in 2010) , and earns additional benefit service, their benefit is calculated as if no payment was made. The resulting lump sum value, at the new payment date, is reduced by the amount of the lump sum previously paid increased with interest at 8% per year. The final present value is then converted to an annuity. In your case what is happening is, since the plan froze and no benefits are being earned, the offset is growing faster and will eventually wear away any additional benefits. Since you were over 65 at 2/1/2021 you should have received a separate packet prior to the lump sum offering that back dates your lump sum amount to the first eligible payment date. That is the date that your lump sum will be greatest since the offset will continue to wear away your benefit. If you need that reprinted please let us know. I have not received a reprinted backdated offering even thought I asked. Nor can I get them to give me a copy of the pension plan with the rules they are stating. One customer service person told me it was federal law being followed. I am real savvy with my nursing skills but I am lost with this stuff. I really feel like they are stealing my pension. Thanks