Pension question for SP employees still at Merck

Discussion in 'Merck' started by Anonymous, Jan 15, 2012 at 3:23 PM.

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  1. Anonymous

    Anonymous Guest

    For SP employees who came over in the merger . How will the future pension look like ? Will we have a SP ( Credit) pension up until end of 2011 and then start on day 1 this year working toward a potential future Merck pension if we are lucky enough to stay around another 10 years .It doesn't look like the pension will be rolled into the Merck pension. Any insight ?
    I believe there are specific rules when companies are combined for the employees who are kept.

    Thanks
     

  2. Anonymous

    Anonymous Guest

    Got separated in December. I called up benefits and asked them for a statement on my options. The printout explains it all. Amounts at different draw ages, what the different survivor benefit choices you have, etc.

    Not sure if they will run the same numbers if you are still employed. Mine fell under the L-SP program.

    We don't have the option for a lump sum, just the standard 20, 30 year (etc) payments.

    I know L-MRK can request the lump sum. Maybe that part of it is changing in 2012.

    Wouldn't hurt to give them a call and hear the options for yourself.

    ....and post what you find out. I'm sure others would be interested, but probably should check for themselves also.
     
  3. Anonymous

    Anonymous Guest

    called the benefits service center for pension information and got to give them 3 dates of potential retirement. Legacy Schering is getting their pension from Legacy Schering pension plan. Nothing in there about combining with the Merck Pension plan

    Received 3 separate documents (one for each date I gave them). Letter states you get three options:
    1) Highest payment each month of YOUR life. this ends at your death

    2) A little lower payout of the monthly amount that would continue after YOUR death that passes onto your spouse ending when spouse dies

    3) the lowest amount each month that continues after YOUR death and that of your spouse and passes onto your beneficiaries (children) if that is how you selected it.
     
  4. Anonymous

    Anonymous Guest

    No lump sum? Read the story about the Hostess bankruptcy and it'll scare any retiree! They are claiming pension payments are the reason for the filing, have $2B in unfunded obligations and are hoping they can rescind the agreements in place to return to profitability.
     
  5. Anonymous

    Anonymous Guest

    What do you do with a lump sum? I'll need the pension.
     
  6. Anonymous

    Anonymous Guest

    no lump sum BUT in all the handbooks -- since the pension plans aren't employee funded-- companies can rescind their agreements to provide one. NOT saying that is what Schering or Merck will do. Because of Enron, the government is into oversight of pension plans offered by companies so no funny business can occur. Anyone that structured their lives to just depend on social security and a possible pension needs to do more with savings.
     
  7. Anonymous

    Anonymous Guest

    the Pension plans of both LSP and LMrk are ok. Read the annual reports documentation that gets sent out and it tells you how it is funded, etc.
     
  8. Anonymous

    Anonymous Guest

    You invest it wisely and the proceeds should last a lot longer than any of the three payout choices.

    The poster who replied that the pensions of LSP and LMRK are fine should note that for NOW they are there are NO guarantees and they can be rescinded.
     
  9. Anonymous

    Anonymous Guest

    L Merck here. Does anyone know if L Merck is offered a lump sum option when offered a package? (Were those let go offered a lump sum option?) Just trying to get prepared for all options when the sh@t hits the fan this summer.
     
  10. Anonymous

    Anonymous Guest

    Is the L-SP pension still being funded? heard that it has been frozen.
     
  11. Anonymous

    Anonymous Guest

    That was why I took a lump sum. With Merck going downward I simply cannot expect them to send me a pension check per the lifetime option. It was riskier to take the money and invest it myself. But the alternative is one day Merck may say sorry or hand the job over to the Pension Benefit Guaranty Board.
     
  12. Anonymous

    Anonymous Guest

    You would be a fool not to take the lump sum. It's not a question of going to the Pension Benefit Guaranty Board. That is a best case scenario. At least they will pay for a good amount of the pension, up to 54,000 a year. If the Pension Benefit Guaranty Board rejects the claim that Merck is in severe financial distress. Merck then can renegotiate terms of the pension. Companies have done this. It's grease-ball crap where no one wins. Let's hope it never happens.
     
  13. Anonymous

    Anonymous Guest

    Yes, lets hope it will never happen and a good reason to take the lump sum. A friend was happily enjoying his retirement from Delphi until the company filed for bankruptcy, handed the pension plan over to the government. His monthly check went down by 2/3? Along with other issues, this sudden change in income caused a divorce.
     
  14. Anonymous

    Anonymous Guest

    With the bozos and clowns running this company, I am not even confident that Merck will still be in business by the time I retire.
     
  15. Anonymous

    Anonymous Guest

    There is a good piece on the Consumer Reports Website about the pros and cons of taking one's pension in a lump sum payment rather than an annuity if one's employer offers. The annuity is usually safest. Many of the above comments appear to assume that a lump sum could be invested and earn a good rate of return, but risk and return tend to go hand in hand, and it is very bad judgment to put any portion of a lump-sum payout of your retirement benefits at risk. It would, for example, be really stupid to put any portion of lump-sum pension benefits into the stock market, where some or all of it could be lost. So it's actually not easy to invest a lump-sum pension payout in a way that will generate a good rate of return. Also, our wonderful Congress recently passed a law that alters the inflation assumptions companies must use in calculating lump-sum payouts, in such a way as to make lump-sum pension payouts smaller than they used to be. Last, the pension protections given by the federal pension guarantee board have been strengthened and make relying on corporate pension promises reasonable now. Most problems in this area have arisen in relation to companies where the pension plan was unfunded or greatly underfunded, neither of which is the case with Merck (I'm not sure what the situation is with Schering's).
     
  16. Anonymous

    Anonymous Guest

    @ post #15. If you read the Merck retirement benefit summary handed out at the end of 1st quarter, you will find that it is only 80% funded. To my knowledge, that puts them at the threshold of being required to take action to remediate the funding deficit (I think if funding falls below 80%). That remediation usually takes the form of reduced benefits. I agree that is difficult to find any place to invest a lump sum where any money will be made. Today's world is one of "preservation", not expansion. In today's world, its not necessarily safer to take the annuity. If you are depending on the PBGC, its $26 billion in the hole.
     
  17. finleyfarmer

    finleyfarmer Guest

    I volunteered(snicker) when the initial merger announcements were made and a lump sum was offered, as well as, 18 months of severence. I was more than satisfied with what I received. The lump sum was invested with Morgan Stanley and they have performed very well. My growth has exceeded my withdrawals every quarter. If you are offered a lump sum grab it and run. "A bird in hand is better than two in the bush". Don't trust a company to have your security in mind when you are no longer employed. GOOD LUCK
     
  18. Anonymous

    Anonymous Guest

    Does anyone know if the lump-sum pension payouts are taxable? I lost a shit load of money with the severance due to the taxes that was affixed.
     
  19. finleyfarmer

    finleyfarmer Guest

    You have to rollit over into a gov't recognized pension plan - no taxes when rolled over - only when you begin withdrawing- 1099s will be provided by your investment firm at years end and you will pay taxes at that time on the sum withdrawned
     
  20. Anonymous

    Anonymous Guest

    A deep throat is better than a bush Right ?