Pension benefit lump sum

Discussion in 'Pfizer' started by Anonymous, Aug 22, 2014 at 9:28 AM.

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  1. Anonymous

    Anonymous Guest

    Why when these offers are made, is the window open for such a short period of time? Wouldn't it behoove the company to leave the window open until they've received a certain number of buyout agreements?
     

  2. Anonymous

    Anonymous Guest

    Bump
     
  3. Anonymous

    Anonymous Guest

    No, not kidding. Pfuck waiting till I'm 80 to enjoy life and spending money. Besides, I don't live in fear and I do know how to save and invest, so eat it Old Pfart.
     
  4. Anonymous

    Anonymous Guest

    Pfizer is not offering this because it is a good deal for former workers. They are doing so because it is a good deal for them. Negotiate. Don't take their first offer. If they don't get enough suckers to bite on this they will have to reconsider.
     
  5. Anonymous

    Anonymous Guest

    This example looks like a pretty terrible deal..
     
  6. Anonymous

    Anonymous Guest

    What is the formula used to calculate the lump sum? I would like to figure it out on my own but cannot seem to find it.
     
  7. Anonymous

    Anonymous Guest

    Well, I calculated the present value of $900/m 25 years from now at your 2.1% inflation rate to be about $535/month today. So you are getting full value in present day dollars. Plus, if you invest that $35,000 rather conservatively at a 5% annual return for 25 years, you'll have about $119,000 dollars which you could draw from the principal alone about $980/month for 10 years after retirement.

    It's actually a good deal to take the money now, earn more than 5% annually compounded and if you are only 40 years old, full retirement is now 67-68 years old for you. Start drawing on that money then and you'll easily beat what you would earn keeping it with Pfizer plus you can pass any excess on to your heirs if something should happen to you.

    You didn't do a bad job number crunching but you were a little off in your analysis. Take the money.
     
  8. Anonymous

    Anonymous Guest

    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, I am currently 53.
     
  9. Anonymous

    Anonymous Guest

    I'll enjoy all you financial geniuses taking the lump sum eating your dog food in a Florida trailer park in the future. Maybe 10% of you will make out ok. The rest will blow it or come out with reduced returns like every other average investor.

    It's the same logic people use when refusing to support higher taxes on the wealthy - they all think they'll be in that group one day. Well you won't. So enjoy the chow.

    On a slightly more serious note, the amount of vitriol and general stupidity on this thread is a good reminder of why I left the company. It was foolish to think there would be a rational discussion here, save a few posts.

    The bulk of us should just raise a middle finger to Frank D'Amelio on this latest offer. And the rest of you little Warren Buffets, good luck.
     
  10. Anonymous

    Anonymous Guest

    You are so wrong on so many levels. But, you're too stupid to even have a rational conversation. The only factor that really counts is what is the amount of the lump sum.
    Many of us walked away with 500 to 1 million dollars of Pfizer's money. Even at 4% return! we're way ahead of anty pension. You're going to trust Pfizer/ prudential with that kind of cash?
    No one with a brain would do that.
    As for taxing the wealthy...bullshit. They took the risks, made the sacrifices, employ other people, and deserve to be paid. It's lazy, ignorant parasites like you that are always looking to someone else to take care of you. Go to Greece! You belong there.
     
  11. Anonymous

    Anonymous Guest

    Hard to walk away from a 1 million dollar or more payout. I know a few long timers who took the money and ran. Don't think any are eating dog food or living in a trailer. Every situation is different so lets stop painting with broad strokes. I know a few people in other industries who's pensions got cut in half after the company they worked for stopped funding or went belly up (gov't took over the pension). Do you think they wish they had a lump sum option they could have taken. Fair to say there is no 100% right answer for everyone. What is good for me may not be good for you.
     
  12. Anonymous

    Anonymous Guest

    Exactly. Pensions are safer, but you have the risk of dying, company manipulation, payout never changes, etc. Annuities of any kind are as much a gamble as simple investing. You have to do what's comfortable for you. I know many retires who are glad they took the pension and just as many who took the lump. Interestingly, ver few regret either decision.

    For gods sake, don't make a decision based on what you read here!
     
  13. Anonymous

    Anonymous Guest

    Like many, I have given a great deal of thought on what to do with this option. I keep returning to one idea. My lump sum is generous, so why not take it, pay the taxes, take the net, and buy a terrific home or condo in an area that will certainly appreciate over the next 20+ years. Real estate is sound if you know what you are doing. The second home (vacation home) can be rented to earn additional income (while the property is appreciating naturally) and it can be enjoyed and used now by family and friends.
     
  14. Anonymous

    Anonymous Guest

    Great idea.....and a financially sound one.
     
  15. Anonymous

    Anonymous Guest

    This is funny coming from whoever you are since there is not one rational thing in what you say.

    If I refuse to want to tax the rich, by the way, it's not because I want to become one. It's because I trust individuals with their money more than a thieving, corrupt politician with other people's money. Also, having been poor, I've never seen a poor person made financially stable because of government hand outs but I've seen many lose their will to work, stay single parents and let their drug and alcohol habits get worse.

    I've seen a few poor folks move into the middle class - education and job skills, not government handouts, was the reason in every single case. Overcoming the wretched public school education they received was the biggest hurdle after overcoming the culture of dependency on government.

    Meanwhile, you advise dependency on Pfizer rather than taking control of their financial future by taking an equitable lump sum benefit.

    And you people who don't understand present value and future value and some of the assumptions in the calculations, get a planner to help you.
     
  16. Anonymous

    Anonymous Guest

    i left Pfizer a few years ago- layoff. Took a lump sum. Recently, received a letter that they miscalculated my lump sum do to a miscalculation in 2005. They want an amount of money back. Seems unbelievable with all Pfizers checks and balances. Anybody else out there get this letter?
     
  17. Anonymous

    Anonymous Guest

    Fight, fight fight this. Get a lawyer. Make them prove it and fight for it
     
  18. Anonymous

    Anonymous Guest

    I was part of the October 2014 layoffs. I am WL legacy. There are people who qualify with WL, you had to be separated from the company by Dec 31, 2014. I do not qualify because my seperation date was Jan 2015. Fidelity was very helpful.
     
  19. Anonymous

    Anonymous Guest

    Tell them to go screw themselves. It bullshit. Don't knuckle to their intimidation tactics.