We examine pre-retirement lump-sum distributions from pension plans, which have grown significantly in recent years. Most LSD recipients do not roll over the funds into qualified accounts, but the likelihood of rollover rises for larger distributions. We find that tax penalties imposed in 1986 on non-rollovers by people younger than 55 raised the likelihood of rollovers among this group, but had less effect on the likelihood that such households saved the funds, where saving includes investing in taxable assets and paying off debt. Simple calculations indicate that cash-outs reduce annual retirement income by $1,000 to $3,000. These calculations almost surely overstate the pension loss. Nevertheless, pension loss may be quite important among the affected households, who are likely to have accumulated less retirement wealth than average.