Visteon offered approximately 10,000 eligible salaried retirees and former employees the option to receive a voluntary lump sum pension benefit payment. Those that were made the offer had a short window in which to make this important decision.
By taking advantage of the lump sum pension payment option, Visteon retirees were able to reduce many potential pension risks including longevity risk due to inflation, tax risk, and mortality risk. Most importantly a lump sum pension payment completely eliminates “PBGC risk” – the risk that monthly pension payments are someday reduced by the Pension Benefit Guaranty Corporation, as Delphi retirees suffered.
Mainstay Capital Management developed a comprehensive Visteon Pension Payment AnalyzerTM to assist employees and retirees in evaluating this option.
MCM’s Visteon Pension Payment AnalyzerTM helped answer these questions:
- Which pension benefit payment option is best for my personal situation?
- What is the present lump sum value of my pension?
- What are my monthly cash flow needs in retirement?
- How are monthly pension payments impacted by inflation?
- What are the tax implications of a lump sum versus monthly pension payments?
- Do I want the ability to take distributions from my pension benefit at my discretion?
- How does the life expectancy of my spouse and I impact this decision?
- How can each pension payment option impact my estate planning and financial legacy?
- How would my overall retirement income plan change with a lump sum pension payment?
- How can a lump sum pension payment improve flexibility in my income and tax planning?
- What is the best way to optimize my overall retirement savings and pension benefit?
- What changes should I consider in my Visteon VIP, IRA, and Social Security distributions?
- How would a PBGC takeover of Visteon’s pension plan impact my pension benefit?
- How much would my monthly pension payment be reduced in a PBGC takeover?
Mainstay has counseled thousands of auto workers on retirement saving, planning, and investing. We can provide a comprehensive Retirement Income Analysis, help you evaluate "what-if" scenarios, and assist you in making well-informed decisions concerning your Visteon pension payment options.
Call Mainstay Capital Management toll-free at 1-866-444-6246 to discuss your personal situation.