So when does the defined benefit pension plan get cut or changed?

Discussion in 'Johnson & Johnson' started by Anonymous, Jan 30, 2010 at 4:15 PM.

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  1. Anonymous

    Anonymous Guest


    You can't be serious. Asking for retirement and pension advice on cafePharma? Get a financial planner, or go on the pension calculator. The dumbest FP in the world is better than the smartest CPharma responder. This is the worst possible place to come looking for information.
     

  2. Anonymous

    Anonymous Guest

    Can you elect to have a lump sum payout today if you've left the company. I don't want to spend it, I want to save it myself. Roth would be a much better investment vehicle than the defined pension plan. Also, I'm leary of corporate leaders that cut benefits to the rank and file while getting 30mm per annum. Call me crazy.
     
  3. Anonymous

    Anonymous Guest

    Go away
     
  4. Anonymous

    Anonymous Guest

    There is no lump sum payout option in the J&J pension. There are a lot of options as to how you get paid. Too numerous to mention. Go to pension calculator. There is a lot of info there.

    Also, here is another way they could limit pensions - stop giving us raises which will happen for some of us under the new comp system. So, IF THE PENSION IS CONTINUED, those people salaries will not go up and the pension amount will be reduced because the calculation is based on the average of the last three years of salary.
     
  5. Anonymous

    Anonymous Guest

    You are correct about the raises, but that should not impact many people. The salary ranges in the new bands are much broader than under the the old system, so there will be few people not getting raises because they are at the upper end.
     
  6. Anonymous

    Anonymous Guest

    Why was I under the assumption that pensions were calculated as an average of the highest five years overall earning within the last ten years of work? Maybe that was an old way?

    If it is truly based on the LAST THREE YEARS BASE SALARY, the new banding may actually drive out some tenured folks like myself!! I am in jeopardy of being paid the lump sum difference between my current base and the top of the new job band base salary. Unless I can get promoted... ha ha. That would suck, as it WILL lower my pension!!! No reason to stay longer, as it will just get worse. I have been calculating with the retirement calculator that for each six months I stay, my pension goes up significantly at this point.

    If that is true, it is a very clever move to rid the company of old folks, without paying us off!! I turn 58 later this year, with 26 years tenure (SURVIVOR!!) Thank goodness I have been pouring beaucoup bucks into my 401K.
     
  7. Anonymous

    Anonymous Guest

    To my knowledge, the pension is calculated on the highest consecutive 60 months within the past 10 years. I haven't heard of any change.
    And, you are right, those of us who have been here a long time will have to carefully watch our pensions because with the salary caps and no raises for those of us over our band, we could actually get less pension by staying more than 5 years.
     
  8. Anonymous

    Anonymous Guest

    I haven't seen this situation posed elsewhere.....

    I am vested with only 6 years employment, not vested elsewhere, but ok with savings and 401k. Does anyone have any update info on the JNJ pension plan and ideas on the following scenario: 1) if I returned to JNJ now at the age of 55, 2) worked a couple of years retiring at 57:

    *Would it make a big difference on the pension --8 years vs 10 years service? (is the 10 year interval a critical number or it's just used for incremental reference?)

    *Would I get healthcare benefits upon retirement?

    Thanks-
     
  9. Anonymous

    Anonymous Guest

    I don't believe 2 more years with your low years of service would make much difference. The very concept of a "defined benefit" pension is that the pension escalates during the last number of years of employment, (hockey stick graph), and is really designed for the career employee (30 to 40 years service). I'm not being snide, but you're not going to get much regardless.
     
  10. Anonymous

    Anonymous Guest

    The pension calculaor is very accurate. My suggestions: hang in as long as you can, a defined benefit plan is back end loaded, escalates geometrically the last few years of employment. You will take a big hit with 100% for your wife also, think about it, the annunity is covering TWO people (all based on life expectancy). Go for 50% joint and survivor if possible, I understand if she has never worked this may not be enough, although in this case she would be eligible for 50% of your S.S. also when you die. Hope this helps.
     
  11. Anonymous

    Anonymous Guest

    You're confusing two points: one is your numerical salary and the other percentage. These are the two variables plugged into the calculation. You will get a higher % as you have more vested years with the company (or more accurately, you'll be penalized LESS for early retirement). So even is your income stays the same say, in your case, between your age 58 and 62, you will be eligible for more pension benefits (it's actually 4% per year). Hope that helps.
     
  12. Anonymous

    Anonymous Guest

    I don't know where this 30% comes from: true it's not only age, but a combination of age and tenure, and also the choices you make for your pension payout. I retired 2 years ago at age 60, 35 year tenure, and am currently drawing 57% of my final salary. I elected 50% joint and survivor (my wife gets half of my pension for her lifetime if I pre-decease her) It would have been 8% more if I'd waited to 62 (you are penalized 4% per year for early retirement, which is defined as being between 55 and 62). When you are at the time you plan to retire, a defined plan is golden as a base, along with 401k, private investments, S.S., added to pension, S.S., etc. your spouse has.
     
  13. Anonymous

    Anonymous Guest

    I've been doing some calculating myself and the payment for life really is an attractive benefit making me feel inclined to try to stay at J&J. I really do want to go, but the other company I'm considering has given up on pensions and gone to 100% 401K match up to 6% of your salary. Even though I won't work for that many more years, the difference in pension is significant and would be very nice added to my 401K and SS. A much higher salary and the better match does not come close to the amount of money from the pension, even if I don't live to a very old age.

    So, I really do wonder if J&J will move to freeze the pension for current employees and eliminate it for new employees. If they do, I think will be sorry I didn't move on. I'm very interested to hear more about any information concerning the future of the J&J pensions. Please tell me more.
     
  14. Anonymous

    Anonymous Guest

    Don't be retarded. Hang in there and collect the check! If I was in your position, nothing about this place would bother me. I'd just sit back, do my thing and count my money.
     
  15. Anonymous

    Anonymous Guest

    Don't you wish it would really be up to each of us to decide if we wanted to stay here until retirement? All the pharma and biotech companies today are freezing pensions, getting rid of them as well as all benefits to current employees, and not offering anything to new employees anymore. Blame the recession or the health care reform but things are changing. J&J is behind the curve compared to the other pharma and biotech companies that have already slashed their employee costs by the billions in the past year. Can't imagine this company doing so badly this past year and not doing exactly what every other company in the industry is doing to cut costs and be more attractive to shareholders. Don't complain when J&J continues in moving forward with more drastic reductions towards employee salaries, positions, and benefits. They have been forced to do so in order to make up for their errors in the past few years. Hopefully everyone is planning for a secure future without relying on J&J or any company to save you and your family.
     
  16. Anonymous

    Anonymous Guest

    Here's how I believe J&J would (will) do it when the decision is made to phase out defined benefit pensions: If you're age 55+ with 10+ years tenure, you stay in current pension plan, age 45+ with 20 years+, you keep defined benefits accrued, but are now in a hybrid of added 401k benefits while phasing out defined, and less than 20 you keep accrued defined benefits but go to all added 401k benefits. Or something like that. You don't say what your current age is, but if you're 55 or close to it, if you have the option, HANG IN. Your pension benefits(if any) at a new company would be NOTHING compared to J&J. (you say you won't work for "that many more years" I'm assuming you have decades with J&J). Here's another way to look at it: rule of thumb: you need about $1m in savings to generate $50k in income. Can you save (401k or whatever) $1m or $2m in the "not that many more years" or working?
     
  17. Anonymous

    Anonymous Guest

    In many ways that is good advice and what I am thinking for the most part. At the same time I wonder if a new start would revitalize my passion for work, so that the remaining time would not be such drudgery. I thought I might even continue to work a bit longer, if I were more engaged and more excited about what I did and where I worked.

    I'm currently hanging on with my fingernails dragging across a chalkboard, even though I am also grateful to have a job. It is just a shame that simply being grateful to have a job has replaced the passion that many of us felt when we first went into science and research as a career. Maybe some of the fault is mine for losing my passion, but I think some of it is also the fault of the decisions by J&J senior leadership and even my immediate supervisor to some extent.
     
  18. Anonymous

    Anonymous Guest

    After such legal issues and bad press in almost every operating division this past year, I would assume that J&J will be taking drastic measures immediately to make it's portfolio and image more attractive to shareholders. And that means cutting costs. J&J's Pension Plan, Total Benefits Package, and 401 K match are superior to any other pharma, device, and biotech company out there. It makes sense that the Pension Plan will be frozen this year for all employees and eliminated for any new hires in 2010. The financial future we all worked so hard and planned so carefully for is not going to be what we expected. It's a shame.
     
  19. Anonymous

    Anonymous Guest

    Do you think they'll be targeting the older employees to save money on salaries and potential big pensions? That's the rumor I've been hearing. I hear that if you're close to 55 you're a goner.
     
  20. Anonymous

    Anonymous Guest

    Word around the water cooler is that since jnj had such a rough year, any and every vested employee is fair game. The more tenured employees close to retirement are the most expensive to jnj so they are right to be more concerned. They have the most to lose if they get laid off. According to most managers, many of the older reps also have chips on their shoulders from having gone through so many redeployments and changes which have taken them out of their comfort zone. Managers complain that the tenured reps also seem to resent any upgrades in technology and are resistant to new programs and directions, thinking that since they have more years in the industry than their managers they know what works in the field. It's difficult to train an old dog new tricks and if employees around here don't begin to embrace the many changes that are coming their way, they are putting themselves at risk for being targets with the upcoming downsizings.