General Electric (GE) recently announced they had frozen their defined benefit plan and were offering lump-sum pension payouts to about 100,000 retirees. GE will also discontinue making pension contributions after 2021. This follows a similar action by Ford to freeze their defined benefit pension for their retirees. A Ford executive recently commented that although they no longer actively report internally on these figures, over the last few years, the take-up rate for a lump sum payment would bounce around between a third to a half. The recent average hovers around 40%. As pension liabilities loom, coupled with relaxed rules from the IRS on pension freezes, many more companies will likely freeze existing pensions and offer lump sums.
Read the full blog post by Leon LaBrecque on Forbes.com here: https://www.forbes.com/sites/leonlabrecque/2019/10/13/should-you-take-ls...
View Leon LaBrecque's Forbes contributor profile and other blog posts here: https://www.forbes.com/sites/leonlabrecque/
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Image is Getty from original post.