He can’t possibly lose it all. He’ll lose whatever hasn’t fully vested yet.
It’s a damn shame he can’t be rendered penniless.
“It’s a damn shame he can’t be rendered penniless.”
Like General Flynn who he helped drive into bankruptcy, he may end up there, thanks to legal bills.
On the TSP (401k) side, he’ll keep all of that intact. The monthly pension check will be problem. One can only take a guess, but his TSP (if contributed fair amounts into it), might add up to $400k to $500k.
The problem I see is that he’s only 49. He couldn’t really turn on the TSP until age 55, without some penalty.
He’ll fight this in court but that’ll burn up at least $100k on lawyer fees. And he probably won’t win the case.
“He can’t possibly lose it all. He’ll lose whatever hasn’t fully vested yet.”
I’m not sure exactly which rules apply to him, but it’s one day before he turns 50, which I bet is the magical minimum age to be fully vested. I bet it chews into his pension big time.
“He can’t possibly lose it all. He’ll lose whatever hasn’t fully vested yet.”
Where I worked, that was the case. Even though it didn’t apply to me (I was a recent hire), my understanding of the rules for long-term employees was that if someone quits (or was fired) one day before retirement age, he would have lost about 33% of his monthly benefits (versus retiring a day later)...still got something, but not nearly as much.
BUT, he would have also lost his retirement medical - completely, by quitting early. He’s 50 years old - and now can enjoy his boss’s medical plan (Obamacare) for the next 15 years. I suspect that’s what REALLY scared the hell out of him.