The organization that I worked for does not allow for lump sum pension buyouts. Do I have any legal recourse if I am disabled?

Asked about 1 year ago - Apple Valley, CA

I worked for a non-profit organization for 16 years and am presently collecting Social Security Disability. I am now in financial difficulty and would like my pension in lump sum form (they offered me payments of $187 a month for life but no lump sum). Do I have any legal recourse to have this matter handled for me in such a way that I can collect my payments as a lump sum? Thank you.

Attorney answers (2)

  1. Neil Pedersen

    Contributor Level 20

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    Lawyer agrees

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    Answered . The answer to your question lies in the terms of the specific plan to which you belong. Some allow for lump sum payouts in exigent circumstances. Others allow borrowing against your money in various amounts. You need to get the terms of your pension plan and scour it for what you are looking for. For an hour or less of their time you could have an attorney do that review for you, so that you do not miss something in the legalese.

    Good luck to you.

    This answer should not be construed to create any attorney-client relationship. Such a relationship can be formed... more
  2. Adam Kielich

    Contributor Level 18

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    Lawyer agrees

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    Answered . If your former employer's plan does not offer a lump sum payout as a benefit option then there is not a way to change the rules to make an exception for you. You need to look at the plan rules and determine whether the plan offers a lump sum option.

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