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Old 08-18-2015, 02:20 PM   #21
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The retirement system does pay most of the cost for the retirees. For 2016 DH would pay $100 and the retirement system would pay $869. By 2018 he will be paying more, they are in a transition phase for a few years.

His subsidy is less than most of the other retirees, he retired at 55 with 26.67 years of service.

We are both using an Obamacare HDHP plan for 2015 because if he takes the retiree plan I lose a large portion of my subsidy - same income but only one of us buying insurance.
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Married, both 62. DH retired June, 2010. I have a pleasant little part time job.
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Old 08-19-2015, 07:23 AM   #22
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The real question for me is what guarantee is there that the medical benefits will not change for retirees at some point in the future any way? A number of retirees have over the years found out that their "medical benefits" were not guaranteed and changed or were eliminated during retirement.
None what soever. My big megacorporation just ended retiree medical benefits as on january 2015. those with 20 years or more are grandfathered in at reduced benefits.

Those with 20 year or less are SOL

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Old 08-19-2015, 08:55 AM   #23
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Super,

I took the VLO package with your megacorp two years and never looked back. I wasn't eligible for the retirement medical.

Actually that's not true. About a year ago same said megacorp offered me a pension buyout option that would have been a sweet deal for me. I accepted the offer, then they later retracted it.

So is the retirement medical benefit guaranteed? Don't count on it.
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Old 08-19-2015, 10:23 AM   #24
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Thank you. This is a reality check indeed on the cost side.
Huh...Big Deal.....Try 1400 a month for me and wife from City of Chicago Retiree Health Care. Yet the media continues to demonize those hated public employees.
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Old 08-19-2015, 10:25 AM   #25
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In your situation I would retire before the end of the year. We were government employees & retiree insurance costs way more then when you are active. We pay $900/month.
Got you beat. 1400/month for City of Chicago retiree + spouse.
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Old 08-19-2015, 11:15 AM   #26
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When I went out the megacorp door in a big bang, I grumbled about how I missed any retiree medical $ at all by being over a year too young to qualify. But not to worry, shortly thereafter they powered down retiree medical, not by pulling the plug cleanly, but by diddling it in and out of the socket for awhile. The retirees who were using it, were SOL, including a few that had cancer. Welcome to the Machine.
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Old 08-19-2015, 11:54 AM   #27
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As a soon-to-be-former employee of Supernova72's Megacorp I am just crossing my fingers, clicking my heels 3 times and hoping their generous retiree medical program lasts the next 10 years until I'm Medicare eligible. The Corp is about as Mega as it gets, so I think there's a pretty good chance, but as many of those above have pointed out, nothing's for sure these days.
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Old 08-19-2015, 07:03 PM   #28
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As a soon-to-be-former employee of Supernova72's Megacorp I am just crossing my fingers, clicking my heels 3 times and hoping their generous retiree medical program lasts the next 10 years until I'm Medicare eligible. The Corp is about as Mega as it gets, so I think there's a pretty good chance, but as many of those above have pointed out, nothing's for sure these days.
I'll keep my fingers crossed for you Stepford!

Yes, if size matters Megacorp wise, it should be around for awhile I would think. If I go 2016 or later I'm guessing it will go up a bit each yr but hey still a good thing.
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Old 08-19-2015, 07:06 PM   #29
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Our payments for employer retiree med bennies basically were identical to Medicare such that nothing really changed when we went on Medicare. Benefits were similar too. Net, great deal.
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Old 08-21-2015, 05:58 PM   #30
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Super,

I took the VLO package with your megacorp two years and never looked back. I wasn't eligible for the retirement medical.

Actually that's not true. About a year ago same said megacorp offered me a pension buyout option that would have been a sweet deal for me. I accepted the offer, then they later retracted it.

So is the retirement medical benefit guaranteed? Don't count on it.
Zedd. Sorry for the delay. I recall that Oct 2014 buyout offer as well to employees who "had worked at Mega and eligible for the pension" at some point. So it sounds like the lump buyout was pulled back then huh?
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Old 08-21-2015, 06:07 PM   #31
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Ripper1 -that is one contest that I am happy to lose to you)
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Old 08-21-2015, 08:41 PM   #32
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Zedd. Sorry for the delay. I recall that Oct 2014 buyout offer as well to employees who "had worked at Mega and eligible for the pension" at some point. So it sounds like the lump buyout was pulled back then huh?
It wasn't the lump sum offer that was retracted. Rather they offered then retracted an early pension commencement option. The offer as compared to the same early commencement date per TotalAccess, their online pension system, was a really attractive deal. I took their offer to imply that they really wanted me to accept that option.

Their explanation was, whoopsie we made a mistake. I was ready to sue their whoopsie off. Cooler heads convinced me that it wasn't worth the effort as it would have had to be heard in federal court.
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Old 08-23-2015, 10:50 PM   #33
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Pension frozen somewhat 2012. Still grows about 4% a year until 60
Can take lump sum or annuity
Can take insurance today at 53 around 500 a month for one at 60 about 150 a month. All stops at 65 Medicare will take over. I feel lucky today, it could be worse, brother is retired 61 and pays 1300 a month for insurance


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Old 08-24-2015, 12:40 PM   #34
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It wasn't the lump sum offer that was retracted. Rather they offered then retracted an early pension commencement option. The offer as compared to the same early commencement date per TotalAccess, their online pension system, was a really attractive deal. I took their offer to imply that they really wanted me to accept that option.

Their explanation was, whoopsie we made a mistake. I was ready to sue their whoopsie off. Cooler heads convinced me that it wasn't worth the effort as it would have had to be heard in federal court.
____
Interesting on the mistake. There are now two incentives to retire before 2016 IMHO. But even if you go in 2016 and on they started a new 401K add on (VIP+) that will put an additional 9% into a separate 401K. 8% for 2017 ER so maybe the incentive is closer to one (retiree medical at $20 a month). Cheers.
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Old 08-31-2015, 04:03 PM   #35
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Interesting on the mistake. There are now two incentives to retire before 2016 IMHO. But even if you go in 2016 and on they started a new 401K add on (VIP+) that will put an additional 9% into a separate 401K. 8% for 2017 ER so maybe the incentive is closer to one (retiree medical at $20 a month). Cheers.
They just announced a lump sum plan for our Megacorp for those who retire after April 2016. No details until January, so may not be an option based on the December 2015 deadline for the health care decision.
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Old 08-31-2015, 04:21 PM   #36
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They just announced a lump sum plan for our Megacorp for those who retire after April 2016. No details until January, so may not be an option based on the December 2015 deadline for the health care decision.
Interesting indeed. I just heard that the IAM machinists who had worked at this Megacorp (but have not drawn yet) received letters on lump sum pension buyout. I think that deadline is either Oct 1st or Oct 31st.
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Old 08-31-2015, 08:57 PM   #37
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My megacorp retiree medical plan is more-or-less a gold plan, with a cost of about $2500/mo for 3 of us. The company subsidy will be about $900/mo, so my share will be $1600/mo. I'm pretty sure that ACA will be more attractive than this to me. I wonder if big companies will start to just contribute their share and let retirees use use exchange plans rather than company-administered plans? That is, if they don't eliminate retiree medical altogether.
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Old 08-31-2015, 09:06 PM   #38
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My megacorp retiree medical plan is more-or-less a gold plan, with a cost of about $2500/mo for 3 of us. The company subsidy will be about $900/mo, so my share will be $1600/mo. I'm pretty sure that ACA will be more attractive than this to me. I wonder if big companies will start to just contribute their share and let retirees use use exchange plans rather than company-administered plans? That is, if they don't eliminate retiree medical altogether.

I've seen some companies already do that with current employees and I foresee that being the case for the retirees in the future as well. Same reason as pensions shifting to 401K contributions, keeps the costs fixed for the company.
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Old 09-01-2015, 08:22 AM   #39
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They just announced a lump sum plan for our Megacorp for those who retire after April 2016. No details until January, so may not be an option based on the December 2015 deadline for the health care decision.
Here is how they are explaining why they have decided to offer a lump sum option:

"This new payment option provides advantages to you and to Megacorp. Taking a lump sum gives you more direct control over when, how and where you invest your funds when you retire. You will be able to roll the lump sum into an individual retirement account (IRA) or other eligible retirement plan that accepts rollovers, including the Megacorp 401k, and manage the investment yourself. You will be able to include the lump sum in your estate planning and pass any remaining money to the heir(s) of your choice. Allowing you to take a lump-sum payment also will reduce Megacorpís growing pension liabilities, making us more competitive in the long term."

While they are pitching it as a good deal for the employee, they are honest in why it is a good deal for Megacorp.
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Old 09-01-2015, 11:00 AM   #40
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They just announced a lump sum plan for our Megacorp for those who retire after April 2016. No details until January, so may not be an option based on the December 2015 deadline for the health care decision.
I did see the announcement later in the day yesterday so thanks for the heads up. I'm glad they are being upfront about on the "why" part which is understandable.

"Paying out the entire benefit in a lump sum to those who elect it will reduce Megacorps pension obligation, making the company more competitive in the long term"

They've been reporting financials GAAP, and non-GAAP for a few years now (including pension, excluding pension). Last I heard the pension obligation was $50B+.

Be interesting to see the discount factor used. The one last year for former employees was ~30%.
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