Mps,
If you really need funds now, and have no other alternative, then I think the only choice is really to take at least a partial lump sum payment of your pension. But I would wonder why the need to access such cash now is so crucial, and whether or not there's ANYPLACE else that you might access cash if you need it?

Beyond the immediate cash flow/liquidity needs, here are a few other factors to consider when evaluating a pension payment versus a lump sum:

1) Rate of return. A pension generally incorporates some kind of internal rate of return used to provide its guaranteed income stream. Typically, this comes out to be somewhere around 4%-7% if you live to life expectancy, although it can vary. To the extent that you feel comfortable investing for a higher return, taking the lump sum and investing it can potentially give you more wealth to fund your retirement. But you do trade off an implicit guaranteed return embedded in the pension, for a POTENTIAL investment return with the lump sum. For some, that's an appealing trade-off; for others, they'd prefer the guarantee.

2) Company risk. At the end of the day, there is some risk to a pension if the company goes under, and/or if the pension is underfunded and the company cannot afford to bring up the reserves to where they need to be. Pensions are insured by the Pension Benefit Guaranty Corporation (PBGC), but only up to a limit. Any pension amounts above the limit will still be at risk.

3) Life expectancy. A pension essentially creates more wealth for you, the longer it pays out; the alternative lump sum puts assets immediately on your balance sheet, which you in turn spend down over time. If you live a long time, you can harvest significant wealth out of a pension (and in essence taking the lump sum means you have to beat the rate of return over time, as discussed in #1 above). However, if you are unhealthy and live a shorter period of time, you won't receive very many pension payments, and may find that the lump sum provides more money to yourself and/or your heirs.

I hope that helps a little!