The government has updated a rule that governs worker and retiree pension plans. New released guidelines in March now allow employers to offer a lump-sum payout to Americans in order to buy them out of future annuity payments. The Obama Administration said it would stop allowing lump-sum payments, which resulted in a decision among most employers to stops offering them. This was a move designed to protect retirees, who- under a defined benefits plan – receive guaranteed payments for life.
Now, if a retiree receives a lump-sum for life they may be short changed in the long run. Discuss the pro’s and con’s with your accountant to understand what this means for you. Making the right investment means you will have money throughout your life.
Rev. Dr. Donna Taylor is the Pastor of Andrew Chapel, United Methodist Church on the Northern Neck in Montross, VA. Rev. Dr. Taylor promotes best practices for financial literacy and financial empowerment in the church and leads workshops throughout Northern Virginia. Currently, she serves as the Chair of the District Finance Committee. In May 2015, Rev. Dr. Taylor received her Doctor of Ministry from Virginia University of Lynchburg in Lynchburg, VA. Rev. Dr. Donna Taylor is married to Dr. David Taylor, who is also the Director of our church-based free clinic. They have two adult children and three grandchildren. In her leisure time, Rev. Dr. Taylor enjoys traveling, jogging, weightlifting, swimming, yoga, and interior decorating. In May 2015, Rev. Dr. Taylor received her Doctor of Ministry from Virginia University of Lynchburg in Lynchburg, Virginia. Rev. Dr. Taylor was born and raised in New York City and recently discovered her ancestral roots in Guinea-Bissau, West Africa. Rev. Dr. Donna Taylor is married to David Taylor and they have a son and a daughter. Their daughter is a educator and son is an Active-Duty Senior Seaman in the Navy married with three children. In her leisure time, she enjoys traveling, reading, swimming, writing poetry, crocheting and spending time with her family.