About 12% said they had used a significant amount of the lump-sum
cash to pay for vacations, and 1% said they had used a significant amount to pay for boats, jewelry or other luxury items.
Numerous theoretical and empirical studies have reported that a one-dollar increase in lump-sum
aid has much stronger fiscal impacts on recipient governments' expenditures on the aided service than an equal amount of increase in consumer-voters' income does.
Participants will receive lump-sum
payments valued at approximately USD216 million from the pension trust, reducing the plan's projected benefit obligation by slightly more than the lump-sum
amount by the end of 2016.
Companies can use two kinds of transactions to reduce their pension obligations: the offer of lump-sum
buyouts to plan participants or the purchase of an annuity from an insurance company, which effectively transfers responsibility for a certain portion of plan participants to the insurer.
Activity [connected with lump sum windows] increased in 2014 as a confluence of events -- new mortality expectations, increased [Pension Benefit Guaranty Corporation] premiums, improved funded status, movement in interest rates, extended funding relief, and additional focus on managing pension risk -- encouraged many plan sponsors to move forward with lump-sum
windows," the report states.
Is it better to take a lump-sum
pension payment or monthly disbursements?
The deferred withdrawal facility will allow subscribers to remain invested in the NPS and defer the lump-sum
withdrawal for ten more years.
The tax treatment of the lump-sum
payment is normally more complicated.
This is in addition to the lump-sum
pension payout option available to U.
General Motors Corporation (NYSE: GM), a United States-based automaker, is providing lump-sum
pension payouts to around 42,000 of its salaried retirees.
The 13-member commission voted unanimously against considering lump-sum
payments for disability compensation after hearing arguments against the idea from DAV National Legislative Director Joseph A.
Two other circuits, as well as numerous Tax Court rulings, have applied this doctrine in lottery sales cases and have consistently held that a lump-sum
payment in exchange for future installments of lottery winnings is properly characterized as ordinary income; see Lattera, 437 F3d 399 (3d Cir.