FAQ’s

LUMP SUM PENSION – FREQUENTLY ASKED QUESTIONS

You are about to make an important decision—exchange a portion of your pension payments for lump-sum cash to do something that’s even more important to you. Pay off credit card debt. Buy a new business. Settle that divorce judgment. Whatever the life situation, we understand its significance.

The heartbeat of Pension Funding LLC is our ability to make pension-worthy buyouts that work like advances when a life situation demands more cash than you have available. But life situations can be uncomfortable.  That’s why we’ve identified – key questions and answers to help you make an informed decision before you apply for this advance:

What types of pensions do you purchase?
Is there a minimum pension amount?
How much does this cash advance cost me?
Why not go to a bank or get a credit card advance?
Can you explain exactly how this works?
Why borrow against my pension when it already falls short of what I need?
What kind of credit profile do I need to qualify?
What else do I need to qualify?
Why do I need an insurance policy?
How long after I apply can I receive funds?
Can I repay the lump-sum advance early?
How does this advance affect my credit report?
What happens to COLA annual increases?
What are the tax consequences of this advance?

What types of pensions do you purchase?
Our tailored financing programs are designed for Civil Service, Corporate and Military Pensioners. Unfortunately, Social Security and VA compensation are excluded.

Is there a minimum pension amount?
Yes, the minimum is $500 per month or $6,000 per year in net payments.

How much does this cash advance cost me?
Ask yourself: What’s the value of something now compared to later? Unless it’s family heirloom, the value will be less. But we can advance you cash against your future pension payments (actually a sale of up to 8 years). After the term of your buyout, normal and full pension payment to you resume.

Why not go to a bank or get a credit card advance?
First, banks or credit card issuers do not recognize future pension payments as collateral. During times of credit crunch, this fact is crucial. To our knowledge, there is no other source of funds that allow you to use your pension except that created by Pension Funding LLC.

What’s more, credit card issuers will charge you 18 to 24 percent or more per year in compound interest, if you do not pay off your balance in 30 days. Pension Funding offers an essential service to counter these restrictive funding practices.

In fact, many of our clients use our funding service to pay off high credit card debt.

Can you explain exactly how this works?
We purchase from you a future cash flow on your pension payment stream, and pay you an upfront lump sum of cash on that stream.

Why borrow against my pension when it already falls short of what I need?
In fact, almost three out of five new middle-class retirees will outlive their financial assets if they keep up their pre-retirement ways of living, according to an Ernst & Young LLP study on behalf of Americans for Secure Retirement. If you are managing your expenses, but still face an emergency or situation that demands a fast cash solution, Pension Funding LLC is the logical alternative to a missed opportunity or failure to act.

What kind of credit profile do I need to qualify?
Experience has taught us that prospects with a good credit history qualify. Even with a Chapter 13 or Chapter 7 bankruptcy, you can qualify if the bankruptcies were discharged two years ago or more. Importantly, we want to create a long-term and satisfying relationship built on trust and sound financials.

What else do I need to qualify?
You do not need to be a homeowner. In fact, stable renters are often strong qualifiers. You do need to demonstrate a solid credit history. You must be currently receiving a pension and can even still be working. There are no age restrictions.

How long after I apply can I receive funds?
If you hold a current life insurance policy at that time of application, the entire process—from application to receipt of cash advance—can complete in as little as three weeks. However, we don’t require our applicants to purchase life insurance policies.

Can I repay the advance early?
As the funding source, we commit the value of our time and finances to you. Pension Funding LLC has carefully worked through the right formulas for a win-win transaction. In general, early repayment is not an option, although exceptions may be considered.

How does cash advance affect my credit report?
Be assured that this lump sum buyout (sometimes referred to as a cash advance), is not reported to any credit bureaus. It remains separate and apart from your credit rating. Unlike a bank loan, this is not viewed as debt. It’s like a trade of one asset for another- up to 8 years of future pensions payments for an immediate lump sum.

What happens to COLA annual increases?
Cost of Living Adjustment payments are returned to you electronically each month.

How much does this cash advance (pension buyout) cost me?

Ask yourself: What’s the value of something now compared to later? Unless it’s family heirloom, the value will be less. But we can advance you cash against your future pension payments, up to 8 years of future payments. After the term of your buyout (up to 8 years), normal and full pension payments to you resume.

What are the tax consequences of this advance?
This transaction does not have tax consequences. When you sell $1,000 a month in pension payments for 96 months to receive lump-sum cash, your tax situation does not change. It is always advisable to consult your tax specialist on financial matters.

[Click here to Request Free Estimate]
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