My pension lump sum hit my IRA today, 7/14/06

I will try not to focus on my former employer's identity, except to say that it is a large Midwest auto parts maker that is in bankruptcy, which doesn't narrow it down much.

Instead of gambling on a stream of future pension payments, I elected to take a lump sum pension payment and sever my financial relationship with my former employer. The check deposited today, 7/14/06. Based on this experience, I have some personal observations.

1) The lump sum process took 3 months for me, from the time I quit until the check posted to my IRA. I believe that a company in liquidation will probably not be paying out lump sums, and will move pensions to the PBGC.

2) My wife needed to sign a special form and get a notary stamp, signifying agreement with the lump sum option. The rollover IRA investment company neglected to send me this form twice, and I didn't know of its existence until after my first set of signatures was rejected, causing about a month of delay. I needed to INSIST ON THE FORM when I was on the phone with the investment company. The first person I talked was unaware of the existence of the form.

3) I had an acceptable job offer in hand before I quit. I believe it was much easier to negotiate salary, benefits, moving expenses, vacations, etc. when I still had a job. An unemployed person is an open invitation for employers to exploit.

4) I didn't discuss my job hunting adventures with my coworkers. I feared that it might get back to my boss, or I feared that a coworker might apply at the same company and get the job I was applying for.

5) I searched the internet for jobs. I thought Monster.com and Careerbuilder.com are good places to start. But I found that it was also important to SEARCH THE WEBSITES OF THE POTENTIAL COMPANIES I WANTED TO WORK FOR. I found that there are many more postings at the company websites than there are on Monster or Careerbuilder.

6) I didn't get disheartened when I didn't find anything acceptable in the first week. I knew that job postings of specific types occur perhaps a couple of times per year. I kept looking. I talked to my family and ended up moving out of the Midwest. The job market in the Midwest is hyper competitive right now, with many unemployed people looking for jobs.

7) I considered the conundrum of working in the same or a different industry. If I worked in a different industry, there would be no question of a conflict of interest, but it might be harder to find a job in a different industry. I looked everywhere that seemed like a good fit for my skills.

8) I tried, but could not arrange to upgrade my skills at company expense. Looking at the job postings, training and experience in 6-sigma was hot. MATLAB, Simulink, finite element analysis, LabView, FMEA and GD&T were also mentioned. I didn't find any recognition of a consultancy started by a guy named Dorian.

For the people who ask how I am doing in Colorado, I am doing fine. The work is interesting and the scenery and activities are great. I worry about my friends that are still in Michigan and I fervently hope that they and my former company fare well, hence the name of the blog, farewellmichigan. That's all for now.