Lump-sum rollover or monthly annuity? What your MPI statement shows you, and what it doesn't.
If you've spent your career on set, your Motion Picture Industry Pension & Health Plans statement holds two very different retirement futures, and most participants are only ever shown one of them in any real detail.
Each year, your statement reports your Individual Account Plan (IAP) balance alongside your defined-benefit Pension. Near your IAP balance you'll see a lump-sum figure, then below it one or two smaller monthly numbers labeled as annuity income. That small layout choice represents one of the most consequential financial decisions you'll make, and it deserves more than a glance.
Your IAP can generally be taken as a lump sum (which can be rolled into an IRA) or converted into a monthly annuity paid for life. The statement typically prints the annuity estimates right alongside the balance, so many participants assume annuitizing is simply "the option." It's one option. The lump-sum rollover is the other, and the two lead to very different places.
Neither path is universally better. They trade off different things: control versus certainty, flexibility versus simplicity. Here's an honest look at both.
The right answer depends far less on the dollar amount and far more on the rest of your financial picture. A useful starting point:
You already have a solid base of guaranteed income from your MPI Pension and Social Security, you're worried about inflation eroding a fixed check over time, you want to keep money available for a spouse or children, or you value flexibility and control.
You don't have much other guaranteed income, certainty and simplicity matter more to you than control, you'd rather not manage investments, or you're concerned about the temptation to spend a lump sum too quickly.
For many MPI households, the conversation lands somewhere in the middle: a strong base Pension plus Social Security already provides the guaranteed floor, which can make the flexibility of rolling the IAP more valuable than turning it into yet another fixed check. But that's a starting hypothesis, not a conclusion. Yours could easily run the other way.
You shouldn't pick by default. You should pick on purpose.
The single biggest mistake I see is participants choosing whichever option was put in front of them, without ever seeing a real side-by-side of what each would mean for their own situation. Whichever way you ultimately go, you deserve to understand the trade-off before you make a decision you usually can't undo.
Before you elect anything, it's worth getting clear on these, the same questions I'd walk through with any MPI participant:
I work with people across the Motion Picture Industry on exactly this decision. There's no cost and no obligation for an initial conversation. Just a clear, honest look at what each path would mean for your situation, using your actual statement.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
This material is provided for general educational purposes only and does not constitute investment advice or a recommendation to take or refrain from any particular course of action. Decisions regarding pension and IAP distributions are significant and generally irrevocable. A rollover is not always the best option; in many situations remaining in an existing plan or electing an annuity may be more appropriate. Any analysis would consider, among other factors, available investment options, fees and expenses, services, and the guarantees associated with each choice.
First Point Financial Management and Sam Javanmard are not affiliated with, endorsed by, or sponsored by the Motion Picture Industry Pension & Health Plans (MPI), SAG-AFTRA, IATSE, or any union or benefit plan. Marks referenced are the property of their respective owners and are used for identification and educational purposes only. CFP® is a certification mark owned by the Certified Financial Planner Board of Standards, Inc.
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