I suspect that there's no cut and dry answer to this.
My company is going to stop managing the pension fund, and is transferring it to an insurance company. We're supposed to get more info later, but the initial memo stated that later this year, there will be buyout offers.
My pension was frozen a long time ago when the company switched to 401k, so I don't have much value in there. Something like $280/month when I retire. But I'm curious how much they figure for buyouts. Like 280/month * 10 years? 15 years? Average life expectancy for an American male appears to only be 76 years old, so if they're expecting that I retire at 65, I wouldn't think they'd offer too many years of buyout.
Or maybe it's calculated a different way than just amount * years?
Obviously I'll get an exact figure at some point later this year, but I'm really curious how this works and googling about it seems to only tell me what a pension buyout IS and the ramifications, but no real details about possible amounts.
Is anyone willing to share some details about how your buyout figure was reached?
I'm sure they used an acturarial table on life expectancy to calculate the timeframe.
