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I pretty much agree with Mike. All good points.

Let me offer a couple of finer points....

Pensions are actuarially rated such that whether begun at the earliest age or at the plan's full retirement age (usually 65), if you live to your life expectancy, the amount you receive will be about the same regardless of beginning age. It sounds like your pension is closed to new employees but you continue to accrue benefits as long as you work the minimum required number of hours per year. As long as your monthly benefit is below the max insured amount, the financial health of the employer really doesn't matter, as PBGC will insure the accrued benefit. But keep in mind, unless you take the joint survivor benefit (50% to 100% to surviving spouse, depending on the plan), if you die, your benefit will stop. Some plans may offer a guaranteed period of payments, say 10 years, such that if you die within 10 years, the plan will continue paying for the full 10 years. Again, this option depends on the plan.

Medical coverage will likely be the major financial factor in your decision on whether to separate or continue. Have you priced the least expensive Bronze plan on the exchange in your area lately? You don't mention a family, but with premiums and deductibles, these things can get very expensive, until you hit 65 and switch to Medicare.

Some plans will offer in-service distributions, such that you can begin reduced benefits after attaining age 59.5 while working.

BruceM
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