Are pension benefits available in a lump-sum payment?

Only on a limited basis. If the actuarial value of your pension is less than $5,000, the Trustees will pay that amount to you in one lump sum. Pensions with an actuarial value that exceeds $5,000 can only be paid in the form of monthly payments. No other lump-sum payments are possible.

Benefits to be paid as a lump-sum may be subject to mandatory 5% withholding for Federal Income Tax unless you elect to rollover such payments into another qualified retirement account. You should consult with your financial and/or tax advisor to select the best approach. Neither the Board of Trustees nor the Fund Office may give tax advice.

Rollovers to qualified retirement accounts such as 401K plans are allowable only if you qualify for a lump sum payment from the Plan. If the actuarial value of your Pension benefit is more than $5,000, benefits must be paid monthly and cannot be rolled over.

Posted in: Pension