How We Helped Three PG&E Employees with Retirement Planning Considerations

Michael Lee

By Farther

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How We Helped Three PG&E Employees with Retirement Planning

Our Farther Focus team has worked with many employees of PG&E over the years. And with more than 26,000 people working at PG&E currently, many different situations can unfold when it comes to financial planning, and, more specifically, retirement planning. Our goal in this case study piece is to briefly capture three different types of planning circumstances surrounding PG&E employment — involuntary separation, voluntary retirement, and nearing retirement. Let's dive into the individual cases.‍

Case Study #1: Involuntary Separation

Name: John
Position: Senior Contract Analyst
Age: 57 Years Old
Years of Service: 37
Planning Focus: Involuntary Separation from PG&E in 2019

John qualified for retirement benefits when he was laid off from PG&E. As such, he was able to effectively retire with his severance. We recommended that since he was still considered young for a retiree, he pursue other employment opportunities. He eventually found a new position at the CPUC.

When it came to his pension, John chose to receive his pension as a joint annuity immediately following his separation from the company. Since he had more than 35 years of service he was qualified for his full pension regardless of his new employment status.

Case Study #2: Voluntary Retirement

Name: Phil
Position: Senior Lineworker
Age: 64 Years Old
Years of Service: 32
Planning Focus: Voluntary Retirement from PG&E in 2022

Phil qualified for retirement benefits and chose to retire. He considered retiring in either 2021 or 2022, and we provided consultations planning his cash flow, budget, and retirement timeline. Since union employees receive full pension and retirement benefits once they have 30 years of service, he had the freedom of choosing between the two dates. He was able to optimize by working through March. This allowed a final cost of living adjustment to fully factor into his paycheck – which also translates into increasing his pension payouts.

Once Phil retired, we provided support by managing his pension and 401K funds. On top of that, we helped guide him through each step of the retirement process:

1. Picking a date based on his cash flow situation

2. Submission of a resignation letter

3. Pension election packet submission

4. Special enrollment for Retiree Medical

5. Rollover of 401K funds through Fidelity

Case Study #3: Current PG&E Employee Nearing Retirement

Name: Sherry
Position: IT Senior Manager
Age: 64 Years Old
Years of Service: 27
Planning Focus: Currently Employed at PG&E

Sherry is a current employee at PG&E. She has plans to retire sometime in the next five years. She is fully eligible to retire with full pension and other benefits but she enjoys her work and is not quite ready to give it up. We provide ongoing consultations on picking dates and making sure she's making the most of her benefits. As a current employee of PG&E, she must keep the funds of her 401K at Fidelity. We provide management services on her 401K by rebalancing her funds and providing guidance on the after-tax rollover feature. This allows her to circumvent the salary and contribution limits to fund a Roth IRA each year she has spillover contributions.

Additionally, she had an inherited IRA from her father who also worked at PG&E. We provide management services on those funds, selecting investments and following required distribution guidelines.

Michael Lee

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Principal, Wealth Advisor & Focus Team Lead

With over 10 years of experience as an advisor, Michael brings a laser-focused approach to holistic wealth management. His first foray into retirement planning was when his mother retired from Kaiser Permanente Walnut Creek. As a first generation American, Michael had the duty of translating for his family – and he felt, firsthand, the stress and anxiety that large financial decisions can cause for the majority of retirees. Michael provides fiduciary advice to soon-to-be retirees of large corporations. And he makes it his number one priority to chop down complex financial concepts – including pensions, 401K/TSA, Social Security, and taxes – into easy-to-understand bites for his clients. Michael’s expertise enables him to add a strong layer of financial advice to a company’s HR team – with a particularly strong understanding of the retirement programs offered by PG&E, AT&T, Kaiser Permanente, Chevron, Northrop Grumman, Boeing, and Raytheon. Born and raised in Oakland, CA, Michael is an active member of the dog rescue community – having fostered many dogs through rescue organizations including Chows Plus and Love Second Chances. You can find him exploring around town with his latest rescue, Chow Chow Maple.

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