How valuable is a pension? How does it work?

[SyZ]

In January, I vest with my company's pension

The first two years, I didn't have anything in it

Then, it magically turned into $2,500, then $2,510, then $2,525, then stopped at $2,900. Now it's $3,300

Is this a yearly payment amount? Total value? Present Value? Future Value? What happens if I leave after I vest? Can I withdraw from it early like with other investments? Is it valuable? Not so much?

[Mr FrugalNL]

I for one don't even know what company you work for, so I'm hardly going to be able to tell you what that dollar amount means without any context. Unless you can give us some more information, I'd try to ask your HR department.

[druth]

There should be a document available to you somewhere that describes how it works.

At my company I get 2.5%(changes based on tenure) added per paycheck, and it earns at a fixed percentage.  When I leave I can either take it as a lump sum or they will buy me an annuity that pays out at a tbd amount based on my age at the time, amount in the account and probably some actuarial table voodoo magic.  Can't withdraw from it early or anything fancy like that.

Really though you should ask your HR.

[bobechs]

It is the cash-out value of your pension if you quit or are fired during the reporting period.

I pulled that answer straight out of my ass, so you would probably be better off asking the department that prepared the report what it means.

But it is an answer.

[PhrugalPhan]

It is the cash-out value of your pension if you quit or are fired during the reporting period.

I pulled that answer straight out of my ass, so you would probably be better off asking the department that prepared the report what it means.

But it is an answer.

^^^ What Bobechs said is almost certainly the answer (although that's a really small amount for two years).  When your pension vests is when its worth something worthwhile (assuming your employer doesn't go under or something else catastrophic)

[BFGirl]

For my pension, what you put in is always yours.  The employer has matching and once you vest, you also get the accumulated matching.  If you quit before vesting, you are only entitled to your contributions.

Mine is like an annuity for life.  We don't have a lump sum option.