Pension Plan

That is great that they are offering an early buy out packages to take you off the books. I would much rather be in control with my own money than have to wait until age 65!

Wondering what formula they are using to figure out the buyout package?

 

Does anyone know how they are selecting the people they are offering the pension buyout opportunity to? I know of people with almost 20 years of tenure and less. They must have some sort of decision tree!

 

As interest rates rise, lump sum payout reduces. They use the GATT rate to compute the payout.

 

Called to confirm that ex Warner-Lambert employees are eligible for the buyout.

Figured there may be a couple of people out there that might have been curious, as well.

 

wait until you see the pennies you'll be offered on the dollar. Esp if your retirement is far off.

 

And how do you know this based on the very linited data that has been given out so far?

 

looking at the example given in a former pension benefit lump sum thread.. 3-4 pages back.. Going out on a real long limb saying it wont be much different if any..

 

Around and around we go. Just take your money and run. Interest rate...who cares. It will make little difference. Just more money for the tax man and for Hillary to piss away.
If you're able to get out , do it. Sitting around watching interest rates is plain stupid.

 

They wouldn't be doing it if it did not work out better for them in some way. Money is as cheap is it will ever be right now for long term borrowing and they want to get rid of as many outstanding debt obligations as they can. It is a close as the assholes running this shit show will ever come to being magnanimous. Call their bluff if you are close to retirement age and can start drawing within 5 years. Or else put it in an IRA and invest it yourself. Anyone with 10-20 years of service should have a money pro look at the situations first

 

former legacy Pfizer employee. Received the letter too about the pension buyout. If they pay based on the wording in the plan summary they will use the GATT_2003 (1994 GAR) and the segmented rates two months prior to the lump sum calculation.
It that is the case and we are given numbers in July then they are using May's numbers which are: First Segment Interest Rate 1.38%, Second Segment Interest Rate 3.88%, Third Segment Interest Rate 4.98%.
There is a calculator on pensionbenefits.com. I used the PPA 2006 Lump Sum Value Calculator. If they use that as the calculation based on my scenario my Lump Sum = 83,186.20. My case is $1025 pension per month at 65 in 2027. I worked for Pfizer for 11 years.