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August 24, 2007


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The sponsoring company never has "possession" of the assets of a qualified defined benefit plan and almost all are guaranteed by the PBGC. A lump-sum distribution makes sense only if you feel you can generate better returns on you own than the pension trust. Talk with a qualified professional.

This was my first inclination too, however many such plans place anywhere up to 10% in their own company stock and most allow much higher percentages individually, so while you may be protected in ownership, you may not be in value.

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