With the end of the year approaching pension buyout offers are all the rage among corporations wanting to reduce their corporate pension liability. Major employers such as The Hartford Financial Services Group, Inc. (HIG) and Boeing Co. (BA) have made offers to former employees that include offers to take their accrued pension benefit as a lump-sum payment. In some cases these offers also include an option to take an annuity with an insurance company.
If you receive such an offer should you accept it? Like so many questions in the world of financial planning the answer is “…it depends.”