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

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. 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 only through the mutual execution of an attorney-client agreement. The answer given is based on the extremely limited facts provided and the proper course of action might change significantly with the introduction of other facts. All who read this answer should not rely on the answer to govern their conduct. Please seek the advice of competent counsel after disclosing all facts to that attorney. This answer is intended for California residents only. The answering party is only licensed to practice in the State of California.


  2. 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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