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I am a former employee of Digital Equipment Corporation, which was bought out by Compaq several years ago. Now that HP has announced plans to buy Compaq, I'm getting a little concerned about my CAPP. I want to move it.

I resigned from Digital in 1989, at which time there existed both a Cash Account Pension Plan (CAPP) as well as a voluntary IRA, but they were mutually exclusive. In 1990, Digital changed its policy to allow current employees to roll their CAPP benefits into an IRA. From what I have been able to determine, from some of my former co-workers, is that this option is not available to those of us who left the company before that change in policy, UNLESS there was some sort of personal problem, such as permanent disability, etc., but I am unable to uncover any details.

Therefore, I only have a Cash Account Pension Plan. I have been able to access my plan account via the Hewitt Web site who now administer the Plan for Compaq. The Hewitt people are not very forthcoming about the flexibility of this Plan.

I am now 60 years old, and can receive a monthly distribution of approximately $450, if I so choose. According to this site, I can receive a lump sum distribution at age 66 of approximately $85,000. If I wait until the age of 70, the plan value decreases to about $65K. I don't understand the math!

However, I am NOT ready to retire and, in fact, want to add assets to my own start-up business. I believe that I can substantially increase the value of the CAPP on my own. Again, the Hewitt people are not very forthcoming about how I can get the most out of this plan. They tell me "it's not set up that way", so I'm looking for advice!

I want very much to be able to either roll-over the Plan assets into a new IRA, receive a reduced distribution, or perhaps use it as collateral, or somehow to make use of it, but I really don't want to wait until 2006.

Can you provide me with some ideas?

Thanks for your interest.
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