I am in a defined benefit pension plan that will provide approximately $28,000/year upon my (early) retirement. I also have an option to have that converted to an investment plan which would them allow me to leave it in the current entity's plan or take control of it myself. Under the self-control option I have been told that there may be an opportunity to take that lump sum (approx. $300,000) and bid out to see if the $28,000/year can be matched.
At the moment with interest rates so low it probably won't pan out that way, but I'll look into it more next year. It doesn't seem feasible that I could generate $28,000/year on $300,000, but I don't know all the details as yet. The big draw at the moment is that instead of under the pension plan the payments stop the month I "kick it", but under the bidding out option they continue for my surviving spouse (up to a point). That sounds like a win situation.
Are any of you familiar with this, know of any more positives, or are aware of any drawbacks?