reduction in force 2009/ question for you

How many of you were within five years of reaching the rule of 70 for retirement benefits? In other words, age plus years of service = 70? I was very and I mean very close to be able to get my retirement in a lump sum. However, I fall a couple of MONTHS short and have to wait 5 more years now.
I have long suspected this was one of the determining factors of the rif, but would like to get opinions and facts regarding this.
Serious replies only please.

 

4 mnths short

 

I am nowhere close to retirement but did they add 5 more years? Was it rule of 70 before and now rule of 75? I do not understand why the reduction in force added 5 years.

 

I was two years from making the rule of 70.

 

From what I understand, years of service plus age at time of service has to equal 70. So if you were 47 and 1/2 and had 22 years of service in at the time of termination, you would fall short of rule of 70. If you do not meet the rule of 70 at that time you must wait until you are 55 to touch it.
What this means is the company has control your money until that time. If you make the rule of 70 you can transfer your money to your own IRA and have controll over it.

If anyone has a better explanation, please post.

 

Agreed. I know from a few others that were let go a few years ago that BMS rolled up their service to the end of the calendar year, which amounted to getting a few extra months counted in age and service. So potentially, someone 47 and 22.5 years of service could qualify for the rule of 70 with some negotiation.

My goal: making it to Feb 2014 or getting a buyout... if MJ is not taken over by then....

 

I have an interview coming up is this a company to work for?

 

I think to qualify for the infamous Rule of 70, you had to be at least 50 years old. My understanding is it's designed for those 50-54. So 50 +20 yrs of service = the magic number. I think if you were 49 or younger, your pension is only about 30% of what it would have been. If you make the Rule of 70, then its like 70%, a big difference.

 

Not sure on minimum age for rule of 70. I understand one will take a major hit if they take retirement before age 55. Plus hear the medical payments by retirees are outrageous, but in line with the times.


For the person about to interview: Was a great company, not so anymore. Once was the number 1 sales force in the country, now decimated and getting worse. No leadership, just heavy, from the top down management. It is a paycheck though...

 

To receive your pension, you must be 55 years of age and have at least 10 years with the company. Even though the pension is frozen, you cannot access it until you no longer work work for the company. Of course, you can't access your 401K before age 59-1/2 or you pay a large penalty for early withdrawal. One phone call to Fidelity can answer all these questions. They are very helpful, and do return calls.
The pension amount is calculated on the interest rate of the 30 year treasury notes. When the economy is down, like now, the interest rate is low, thus the pension amount is higher. When we received our pension info last year when we had the employee cutback, the pension amount was calculated for each of us. My amount looked pretty low, however Fidelity based it on my retirement date of age 66, assuming the economy would be stronger and the 30 year treasury note interest rates higher. After speaking with Fidelity, I learned that my current pension amount was higher, so being over 55, I took the pension immediately, as did another of my teamates in the same boat. I took a lump sum, and she took the monthly payment option, as that worked better for her. I have reinvested my pension with another company and can choose funds, make changes, etc. on-line like we used to do with our 401K's. (You can not longer access you funds and manage them on-line because MJN will not pay Fidelity for that service.) Hope this is helpful. It takes alot of time to investigate this stuff, because no one supplies you with any information. Good Luck.

 

Thanks for the information. Will probably be quite helpful in the upcoming months.

 

I was 3 years from rule of 70. Curses........

 

Lion

 

• I beat it by 3-4 months. 21 years with MJN, Dad was VP, Gen Manager. Still don't understand my benefits... When I call, I get the runaround. Gave my life to them- Won 8 Accent on excellence awards,
• and was let go with 21 years under my belt. Sent my manager on at least 4 of those trips, and he screwed me- Covering a vacant territory and growing both of them!!