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Old 06-01-2012, 04:01 PM   #21
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Originally Posted by JOHNNIE36 View Post
I had what at the time were considered the magic numbers, age plus length of service equals 85 points.
You never know. When I was hired into my first Megacorp job with a pension plan, they also had an "85 point" retirement plan using the same formula, where if you had the 85 points you received the full retirement benefit that wouldn't be reduced because of early retirement (though you had to be at least 55 in all cases).

In the space of less than two years in the 1996-98 time frame, they first eliminated 85 point retirement (for new hires and current employees under 50), then they eliminated retiree health insurance (again for new hires and current employees under 50), and finally froze the pension (yet again for new hires and current employees under 50).

At the time they froze pensions I had 11+ years of service so I was vested into a puny pension (something like $650 a month at age 65 in 2030) but as times get more dire I think they might have to pick more than low-hanging fruit in the future. Still, I doubt they'd come after current retirees; that seems like a third rail few want to touch.
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Old 06-02-2012, 06:06 AM   #22
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Doesnt the ERISA statute require the pension to be converted to a lump sum using a governmtnt published set of interest rates? That how my mega corp calculation was done.

The calculation also involves your age ( since longevity factors into the lump sum required).

The lower the rate the higher the lump sum. Sinking rates may give you an opportunity to wait until next year to take a larger sum. Thats where I'm at.
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Old 06-02-2012, 06:35 AM   #23
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Doesnt the ERISA statute require the pension to be converted to a lump sum using a governmtnt published set of interest rates? That how my mega corp calculation was done.

The calculation also involves your age ( since longevity factors into the lump sum required).

The lower the rate the higher the lump sum. Sinking rates may give you an opportunity to wait until next year to take a larger sum. Thats where I'm at.
I think a lot of people would lean toward the lump sum. Kind of like a "bird in the hand....." I was thinking about what kind of lump sum I would be offered based on my age (76). Probably not much. And, my big concern is what kind of security does that provide for DW? Right now she would get about 50% of my pension if I go before her. Does that provision go away?
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Old 06-04-2012, 01:50 PM   #24
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Received a letter today from GM clarifying the email I got last week about the salaried retirement program. In a nut shell, the letter said that retirement program for salaried people is no more. Done, over, kaput. For those that retired prior to 10-1-97, the benefits remain the same, except it will be administered by Prudential. I was happy to see that survivor benefits remain intact.

This takes a big load off the shoulders of GM concerning future obligations. I went to Google and learned a lot more about the details. For me, I think I'm better off. I think there is less chance of Prudential going under than GM. Maybe I'll avoid the PBGT after all. That just cut my last tie to GM. After 34.5 years, they owe me nothing and I owe them nothing. My fraternity mug from General Motors Institute (1959) still sits on my desk accummulating pens and pencils. I guess that's my last tie. Can't get rid of that. Too many memories of days gone by and of fraternity brothers.
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