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Author: luckyengr One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75892  
Subject: How to get Early Retirement pension? Date: 6/23/2000 12:15 PM
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I have a pension in an international oil company that I left 10 years ago at age 27.
I also have a second pension in another company that I just left after about 9
years.

I may be in a position to retire in the next year or so when I am 38 or 39.

The problem is that both companies say that I can not access the pensions until I
am 55 or 65. Can they do this? I would really prefer rolling the pension into an
IRA.


Hi luckyengr,

I'm not an expert in this area, but if it is a Pension and not a 401k (or 403b), I would
think that the company can require you to wait until you are 55 for a disbursement.

Have you told the company that you would accept a smaller amount if you received it
now?

You may want to Post your question on the Retirement Investing discussion board. Here
is a link:
http://boards.fool.com/Messages.asp?id=1040013000000000

Fool On,

Keith O'Malley
TMFKGOMalley
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Author: TMFExRO Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 22809 of 75892
Subject: Re: How to get Early Retirement pension? Date: 6/23/2000 1:25 PM
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<< The problem is that both companies say that I can not access the pensions until I
am 55 or 65. Can they do this? >>

Yes, they can.

TMF ExRO
Phil Marti

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Author: JABoa Big gold star, 5000 posts Feste Award Nominee! Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 22812 of 75892
Subject: Re: How to get Early Retirement pension? Date: 6/23/2000 3:00 PM
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Perhaps I might add a bit to Phil's admirably succinct reply. If you have a vested, defined contribution pension (one to which you did not contribute), you are pretty much at the mercy of the company.

Where I used to work, there is a distinction between "early retirement" and "vested retirement." You qualify for early retirement in a number of ways. One is, retire at 60 with any number of years of service; a second, retire at 55 with 10 (I think) years of service; and third, retire at any age with 20 years of service. However, there are "actuarial" knockoffs. We had a colleague who was eligible under rule 3, but because he was just 48, he would collect just 5% of the full amount payable at 65.

The difference with vested retirement is the "actuarial" reduction. If you retire early at 55, you get 70% of what you would at 65. With vested retirement, it's 50%.

Other companies may well have different rules, so this is just an example.

The original poster left his first job at 27, if I recall correctly, so his vested pension won't amount to a gnat's posterior no matter when he takes it. From the second job, maybe a bit, but it won't realistically keep him in anything but a weekly box of Cracker-Jack.

If we're talking about a 401(k) then I take it all back.

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