Lump sum pensions?

Discussion in 'Merck' started by Anonymous, Apr 23, 2014 at 7:36 PM.

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  1. Anonymous

    Anonymous Guest

    I heard that our pensions are all going away and are getting rolled into 401ks. Am I the only one worried that when I am finally the age that I should get my well deserved golden handcuffs, that they may dissolve it completely and I may not get anything?
     

  2. Anonymous

    Anonymous Guest

    No you are not the only one worried about that….Look at Merck's track record and you have good reason to…

    I am going to take a lump sum, (no longer with Merck) and just be happy I got anything out of them at all…

    They are so corrupt now I would not put anything past them….
     
  3. Anonymous

    Anonymous Guest

    Read the fine print on all retirement documentation. Merck can modify or end the program at any time. It's what all other companies have done, so why wouldn't Merck.
     
  4. Anonymous

    Anonymous Guest

    Lump sum cant by a lifetime pension......to me the pension is a better bet unless the entire company tanks. Then, isn't there a guarantee? For folks with little in the pot I think taking a lump sum is loses more...
     
  5. Anonymous

    Anonymous Guest

    You need a qualified financial planner. You couldn't be more wrong about what you believe.
     
  6. Anonymous

    Anonymous Guest

    You can take an annuity instead of a lump sum, which is great if you are single, know you are going to live for many years beyond your retirement, and most importantly, you feel Merck will be solvent and operational forever. If you have a family and care about what their fiscal situation is after you've passed on, take the lump sum and talk to a retirement planner.
    Merck's already changed the calculation to contribute less. Do you trust Merck enough to risk your retirement income when you will be too old to work? Sadly many of us will be too young to retire before the lump sum option is revoked.
     
  7. Anonymous

    Anonymous Guest

    Are you all a bunch of trolls?
    Merck changed the plan a year ago.We can retire under the current plan until 2019, after that it is a cash balance plan. They never change plans for the better.

    I will be 62 in 2019 so if I last that long I will be out of here with a lump sum approaching a million $$
    There will be a huge brain drain that year because many Merckies will leave under the old pension. The current modeler shows I will get $300,000 less if I work past 2019. I am sure many will be in the boat, I will only have 25 years in. I have several in my district at 25 years already.

    Sorry younger folks, after 2019 the pension does get worse
     
  8. Anonymous

    Anonymous Guest

    Get your head out of the sand - the jobs are capute after june - ALL
     
  9. Anonymous

    Anonymous Guest

    They have been adjusting the interest rate calculations for years to give less lump sum..30yr bond-GATT- long bond., as interest rates dropped the lump sum amounts went up! All of you had better check closely, may be better to take the pension in some cases! If (and when) the market tanks your lump sum might look like a small pile of dung, in which case 50% of your salary and compensation for life might smell a lot better and draw less flies! If you've been with Merck a while you probably already have a good 401K, stock options that are now somewhat valuable! You have a cash background nest egg so a standard pension monthly might be OK. That begs the question if you can make as much consistently off your lump sum investments as the retirement pays then take the lump sum...I'd sure like to see that! Taxes, vultures and fees will always eat into anything...lots to think about as we near that point in our careers!
     
  10. Anonymous

    Anonymous Guest

    If interest rates rise dramaticallyover the next 5 years it would make sense to pull the trigger earlier than dec 2019 if you are looking at the lump sum... 55 plus are in a good spot... Things are changing...
     
  11. Anonymous

    Anonymous Guest

    "bridged to retirement" oct 1 2013. 58 yrs old 15 yrs with mama merck. just took lump sum of $500,000 pension and rolled over to a financial advisor. doesn't include another $400,000 through fidelity/401K. happy to be out
     
  12. Anonymous

    Anonymous Guest

    Congrats! You got the brass ring. Don't look back!!!
     
  13. Anonymous

    Anonymous Guest

    You are 100% correct. Mass exodus in 2019! At least for those that can weather any cuts in the next few years. Show me the money!!!!!!!
     
  14. Anonymous

    Anonymous Guest

    Considering this is Merck, the choice is a toss up.
    The lump sum might look big, but won't go very far unless it's invested and the interest generated yields enough to pay the bills. With interest rates sooo low for FDIC insured options, most might opt for higher yield investments--a riskier choice for retirees.

    If the retiree has a healthy 401K as a supplement, the lump sum might be a decent choice.

    On the other hand, a pension is steady income and should continue until Merck folds.
    With many people easily living into their 80's, the income generated from a pension for 25-30 years might end up higher than the lump sum option.

    Factor in that Social Security can kick in after 62, so there's another meager income stream to consider.
     
  15. Anonymous

    Anonymous Guest

    Wait a minute. 15 years = 500,000 lump sum? What was your annual salary?
     
  16. Anonymous

    Anonymous Guest

    Sounded like bullshit to me as well! I have almost 30 with a SR.EXEC. now S3 and my lump sum would only be close to 850K...smells like a lawyer!
     
  17. Anonymous

    Anonymous Guest

    I just hope they dont eliminate pension and medical bridging for those of us who are legacy Merck and over 50 but not yet 55.
     
  18. Anonymous

    Anonymous Guest

    Why would people leave in 2019. You wont lose accrued benefits up to that point. You just go into a cash balance garbage plan in 2020. Big deal! You can still collect a big paycheck and get a bunch of paid time off for doing next to nothing. No sense in leaving since nobody is going to hire you anyway.
     
  19. Anonymous

    Anonymous Guest

    ......your say, "pension is steady income and should continue until Merck folds."

    THAT is a big issue! And a big question!

    If "the folding" actually happens, then what?!

    Signed,
    A peon in the mix.......eligible for a just few shackles (just enough to buy a bag of groceries) if me sees a few more years!
     
  20. Anonymous

    Anonymous Guest

    Doesn't matter. The medical bridge program is to expensive to afford any way!!!