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

    If only were that easy to avoid a downsizing.
     

  2. Anonymous

    Anonymous Guest

    I read this board and it's a glimpse of what private workers are faced with at most companies- dwindling or no pensions. And those with pensions aren't likely getting cost of living increases. ALL public sector workers (e.g., teachers, policemen etc) need to be alert that they can't expect the American taxpayer to continue to pay for their pensions when most taxpayers are not getting one themselves. They can't continue to expect cost of living increases and free retirement health care.
     
  3. Anonymous

    Anonymous Guest

    Poster #42 states reality.
     
  4. Anonymous

    Anonymous Guest

    That which can't be paid--won't be paid.
    Politicians over-promised.
    Public-sector unions over-demanded.
    Private-sector firms over-promised.

    It's starting in Ireland, parts of Europe, but eventually anyone who can do 5th grade math knows it's coming to the USA as well.
    http://www.csmonitor.com/Business/The-Adam-Smith-Institute-Blog/2011/0102/European-nations-begin-seizing-private-pensions

    Unless you believe the endless propaganda about how things are getting better and better now, you'd better at least consider the possibility that even 401(k)'s and IRA's may be taxed to nothing or otherwise seized.

    Here's the math on government promises, for the numerically-challenged:
    http://market-ticker.org/akcs-www?singlepost=2139435
     
  5. Anonymous

    Anonymous Guest

    Let's get back to the original topic - when will J&J change its pension. This thread started Feb 2010. Poster #2 sounded like like he or she knew inside info but got it wrong saying it would change in 2010.

    Anyone have any knowledge of the actual change? Some of our competition (Pfizer and I think GSK) changed their pensions in the last year or so.

    Probably before Weldon retires. But exactly what it will be or when I have no clue.
     
  6. Anonymous

    Anonymous Guest

    When: After Weldon retires in about 8-10 months

    NOTE: Many people who were hammered under GCF will see the value of their pensions FALL IN VALUE over the next 5 years. Why? Look at your "pension eligible compensation". If you had high bonuses that were badly hit and if your pay is capped or was reduced, the highest average five will DECLINE in value as those years move out of the ten year window and are replaced by lower earning future years.

    For example if you went from $70 K bonuses as a senior dir to 20K bonuses as an M2 and your salary hit the cap your pension could fall by about 20% over time . . . the small 1.5% annual increments will do little to offset the total decline in credited earnings.

    It COULD PAY for your to leave JNJ or retire early!!!

    Good luck to everyone!!!!!
     
  7. Anonymous

    Anonymous Guest

    Can't see big pharma continue employee pensions and benefits much longer in this economy.


    Leading 15 global pharma majors suffer setback in 2010, net falls by over 20%

    Monday, June 06, 2011, 08:00 Hrs [IST]

    The top 15 global pharmaceutical companies suffered a major setback in their working during the year ended December 2010. The operations of these companies affected mainly on account of stiff competition from generics, expiry of their patented products, restrictive healthcare policies and failure in creating breakthrough drugs, as per a Pharmabiz study.

    Although the global economy recovered from the deep recession somewhat quickly during 2010, higher restructuring and acquisition costs, research and development expenditure and litigation charges put additional burden on overall working of these companies.

    The aggregate worldwide revenues from pharmaceuticals, generics, vaccines, diagnostics, consumer healthcare, nutritional products and animal healthcare, of 15 global pharma companies increased by 11 per cent to US$ 567 billion during the year ended December 2010 from $ 511 billion in the previous year. This was mainly on account of significant higher sales by Pfizer and Merck & Co with merger of Wyeth and Schering-Plough respectively. The aggregate revenues of Pfizer went up by 36 per cent to $68 billion and that of Merck moved up by 68 per cent to $46 billion in 2010. For better comparison, Pharmabiz study has converted all currencies into US Dollar at a constant exchange rate as at the end December 2010 and 2009.

    The aggregate revenues, in terms of US dollar, of sanofi-aventis, GlaxoSmithKline and Johnson & Johnson declined by 4.1 per cent, 2.8 per cent and 0.5 per cent respectively to $40 billion, $44 billion and $62 billion during 2010. Abbott Laboratories, Novartis International, Takeda Pharmaceutical Co and Teva Pharmaceutical have registered growth of over 14 per cent in aggregate revenues. All other companies viz., Amgen, AstraZeneca, Bayer, Bristol-Myers Squibb, Eli Lilly and Co and Roche Group registered revenue growth in the range of 1-6 per cent during 2010.

    The net profit of 15 global companies declined sharply by 20.1 per cent to $85,955 million in 2010 from $107,595 million in the previous year with major setback for Merck, Bristol-Myers and GlaxoSmithKline (GSK). The net profit of these three companies declined in the range of 68-93 per cent. Further, net profit of Abbott Labs, Bayer, Pfizer, sanofi-aventis and Takeda Pharmaceutical declined in the range of 4-19 per cent in 2010. The net profit of Amgen improved marginally by 0.5 per cent to $4,626 million.

    Teva Pharmaceutical, which entered for the first time in Pharmabiz study, has recorded 67 per cent growth in net profit to $3,331 million as against $2,000 million. Eli Lilly and Novartis have posted relatively better growth in profits of 17.1 per cent and 17.9 per cent to $5,070 million and $9,969 million during 2010. Roche also earned a net profit of $9,450 million, a growth of 15.3 per cent. Johnson & Johnson, and AstraZeneca managed to pushed there bottom line by over 8 per cent.

    The net profit of Merck declined sharply by 93.3 per cent to $861 million from $12,899 million in the previous year mainly on account of gains recognized in 2009 with merger of Schering-Plough. Further, the Vioxx liability reserve, restructuring cost of $985 million and impact of US health care reform legislation also put pressure. Bristol-Myers' net declined in 2010 mainly due to income from discontinued operations of $7,373 million in the 2009 which resulted from the split-off of Mead Johnson in 2009. However, its operating profit moved up by 8.4 per cent to $6.071 million.

    GSK's aggregate revenues declined by 2.8 per cent to $43,917 million from $45,178 million in the previous year mainly due to US healthcare reform and EU government austerity measures, which reduced its sales by $588 million. Further, the 'washout' of pandemic products, Avandia and Valtrex also adversely impacted its top line. The net profit of GSK declined sharply by 68.3 per cent to $2,866 million from $9,028 million as its cumulative restructuring cost worked out to $5,568 million for the year 2010.

    The cost of production of 15 companies increased by 16.6 per cent to $172 billion during 2010 and their selling, marketing & administration cost moved up 12.3 per cent to $175 billion from $ 156 billion in the previous year. R&D expenditure went up by 15.5 per cent to $89 billion from $77 billion. However, the provision for taxation declined by 11.3 per cent to $23 billion from $26 billion.

    The pharmaceutical sales, including generics and vaccines, of the Pharmabiz sample of 15 companies increased by 10.4 per cent to $430 billion from $390 billion in 2009. Due to mergers and acquisition, there was major shifting in ranking of companies based on pharmaceutical sales. Pfizer maintained its leading position with pharmaceutical sales of $58,523 million, after taking into consideration sales of Wyeth. Novartis jumped to second spot with pharma sales of $42,478 million. Merck, with merger of Schering, reached to third rank from seventh in the 2009, recording pharma sales of $39,811 million. Sanofi-aventis lost its second position and went down to fifth spot with sales of $37,325 million and GSK from fourth to sixth spot with sales of $36,167 million. Johnson & Johnson and Eli Lilly maintained there ranking in 2010. Teva has overtaken to Takeda Pharma, Amgen and Bayer and grabbed 12th position with pharma sales of $16,121 million as against 15th in the last year.

    The pharmaceutical sales in United States increased only by 3.4 per cent to $185 billion from $180 billion in the previous year. Pfizer's sales in US increased by 29.7 per cent to $25,962 million from $20,010 million. Teva also managed to push its US sales by 16.3 per cent to $9,988 million. Novartis and Abbott also posted 12 per cent sales growth in US. However, Merck, sanofi-aventis, GSK, AstraZeneca, J&J, Takeda Pharma and Bayer received setback in US. Roche, Eli Lilly, Bristol-Myers and Amgen managed single digit growth in US market.

    There were 98 blockbuster products with sales of over one billion dollar in 2010 as against 99 products in the previous year. The total sales of these 98 blockbusters increased by 6.6 per cent to $247 billion from $232 billion in the previous year. Six new products, viz., Effexor, Sutent and Premarin family (all from Pfizer), Isentress (Merck), Velcade (J&J) and Exelon/Exelon patch (Novartis) entered the blockbuster list during 2010. However, 10 products lost blockbuster status which includes Valtrex, Avandia, Relenza and Augmentin (all from GSK), Fosamax and Gardasil (Merck), Tamiflu (Roche), Eloxatin (Sanofi), Pulmicortt (AstraZeneca) and Topamax (J&J). The revenues from these 10 product declined to $8,358 billion from $15,780 billion in the previous year mainly due to intense generic competition.

    Pfizer's blockbuster Lipitor brand maintained its top position with sales of $10,733 million in 2010 as against sales of $11,434 million in the last year, a fall of 6.1 per cent. Seretide/Advair of GSK ranked at second spot with sales of $7,949 million as against $7,926 million. Roche's Avastin and MabThera/Rituxan moved up to third and fourth position with sales of $6,867 million and $6,756 million, recording a strong growth of 14.6 per cent and 15.2 per cent respectively. Plavix of Bristol-Myers lost its third position and went down to fifth rank with sales of $6,666 million.

    The Research and Development (R&D) expenditure of Pharmabiz sample of 15 companies increased by 15.5 per cent to $88,609 million from $76,707 million in the previous year. The R&D expenditure of Merck increased sharply (after merger of Schering) by 88 per cent to $10,991 million from $5,845 billion. Similarly, Abbott's R&D spending increased by 35.8 per cent to $3,725 million and that of Novartis increased by 21.4 per cent to $9,070 million. However, the R&D expenditure of Bristol-Myers, Johnson & Johnson and sanofi-aventis declined in the range of 2-11 per cent during 2010. Pfizer's R&D expenditure increased by 20 per cent to $9,070 million.

    The consumer healthcare sales of 15 companies increased by 7 per cent to $44,368 million from $41,472 million and that of Vaccines went up by 10.1 per cent to $14,715 million from $13,364 million. GSK's vaccines sales touched to $6,691 million from $5,902 million and that of sanofi-aventis reached at $5,046 million from $4,992 million. Novartis reported vaccine sales of $2,978 million as compared to $2,470 million.

    The performance of 14 companies from Pharmabiz sample (excluding Takeda Pharma as its year ends in March) during the first quarter ended March 2011 was not upto the mark and the aggregate net profit declined marginally to $22,555 million from $22,606 million in the corresponding quarter of last year. The aggregate revenues improved only by 3.3 per cent to $140 billion from $135 billion, out of which pharmaceutical sales increased only by 1.9 per cent to $104 billion. Several companies reduced their projection in respect of top line, bottom line and EPS growth for 2011 on account of generic competition, loss of exclusivity, US healthcare reform, stringent approval systems, slower growth in US and Europe and adverse exchange rates. However, the focus on emerging markets, consolidation and cost cutting measures may help to improve financial working.
     
  8. Anonymous

    Anonymous Guest

    Heard the rumor that instead of cutting the pension plan there's gonna be a layoff of about 3000 in a couple of months.
     
  9. Anonymous

    Anonymous Guest

    DONT LOOK NOW BUT IT IS ALREADY GOING AWAY

    Yes there are layoffs happening a (cordis 900-1000 people) and others will follow.
    AND just in case you didn't notice -- anyone who was knocked down by GCF and ended up at the top of their new lower band ----- YOUR PENSION JUST FELL IN VALUE. Your pay is capped an cannot grow for pension purposes. Your bonus took a dive . . . your pension formula will probably decrease in real teams by about 4-10% over the next 3-4 years as your high 5 years are averaged down. If you can't get promoted, you must try to CHANGE JOBS to support yourself and your family.

    Over time -- GCF will effectively FREEZE the pension for many people by effectively
    Ieliminating 10 years of increase in pension value.



    Too bad the leadership didn't have the balls to be honest.



    ----------------
     
  10. Anonymous

    Anonymous Guest

    there is no way to look back on the years spent at jnj as a pharma rep as anything but a waste of time...You just don't see it when you are younger because you enjoy the money, the free car, and the flexible schedule...you also don't mind taking crap from the idiotic district "managers" when you are younger...

    it all becomes painfully clear at somepoint...everyone will eventually have there "a hah" moment and realize they have been swindled...
     
  11. Anonymous

    Anonymous Guest

    Lots still unknown but like previous poster's situation; I am vested with only 6 years, director level and left for somewhat greener pastures 5 years ago right before all the layoffs began. Now am in my mid-50's and seriously wondering if a revised pension plan is developed, it might target those of us with the least time vested. Maybe "early retirement", especially with the recent fiascos re: risperdal and Tylenol/ McNeil Consumer might make more sense.

    Is the pension calculator still online- and available to former employees? I couldn't access it from the JNJ website.
     
  12. Anonymous

    Anonymous Guest

    --------------------
    Taking the 100% survivor option may make a lot of sense if the non-JNJ spouse is much younger than the retiree, or of the JNJ retiree is in poor health and wants to leave a better benefit to the surviging spouse.
     
  13. Anonymous

    Anonymous Guest

    Did you see the email today? Retirement benefits - med insurance- changing
     
  14. Anonymous

    Anonymous Guest

    It gets cut immediately once they make the decision. All employees are expendable from J&J perspective...as are any/all of your benefits.
     
  15. Anonymous

    Anonymous Guest

    This is only the beginning my friend only the beginning.
     
  16. Anonymous

    Anonymous Guest

    It isn't just the pension plan being axed, but word is that the separation pay formula of two weeks for every full year of service is viewed as overly competitive and will also be reduced. In addition to the reduction in this formula, health insurance at the employee rate during the separation pay period is going away. Laid off employees will be offered COBRA during this period. With the future divestitures planned and the resulting lay offs, J&J is looking to decrease the costs of these restructuring expenses.

    It is clearly a new world at J&J and it's all about short term profitability.
     
  17. Anonymous

    Anonymous Guest

    While I'm not a fan of the further devaluing of my employment here, the pension plan has not been axed (yet). I mourn the loss of the JNJ that I joined.
     
  18. Anonymous

    Anonymous Guest

    So would you say that if you've reached the 55 and 10 mark you should retire before the ax falls.
     
  19. Anonymous

    Anonymous Guest

    What do you bet that the pension and benefits only increase for the most senior managers here for doing such a good job of "cost cutting" our plan??