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Discussion in 'Stuart Pharmaceuticals' started by Anonymous, Jan 17, 2011 at 10:49 AM.

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  1. Anonymous

    Anonymous Guest

    There's a disturbing thread on the AZ board about lump sum vs annuity pensions. Am I right in thinking that a lot of former Zeneca retirees are getting the pension. Is the future really that bleak? Isn't the pension plan set in stoneand protected from merger problems?
  2. Anonymous

    Anonymous Guest

    OP, I took pension vs. lump sum about 18 months ago. My financial planner ran the numbers
    and I couldn't bring in as much as the set pension amt. He also researched the plan and stated the AZ retirement plan is one of the most solid. There are regs that protect pensions up to a certain amt. The return on annuities and costs were prohibitive at that time. I took the accelerated pension which will drop at 62 when SS kicks in but it pulls in enough to have a nice retirement income and letting the 401K earn $$ in the meantime. I think the thread on CP was not indicative of someone who investigated the issue and was just shooting from the hip so to speak. Good luck with your decision.
  3. Anonymous

    Anonymous Guest

    I doubt there was any shooting from the hip./ Or Lip.

    Pensions and the person's acceptance of risk is personal.

    The pension is a fixed amount, and ends upon your death. That means if you and your spouse (in the joint pension) get killed on the way home from your retirement party, neither you nor your heirs will ever see a penny.

    I am taking the lump some, as it can be managed conservatively to pay the same amount as your annuity, and maybe more. I also have the support of the 401K to supplement it, and will take the SS at 62.

    Who knows how long you'll live, so get the money up front is my motto. If I take the long dirt nap early, my wife will not have a reduced benefit. And if we both go, there should be a significant nest egg for the kids.

    It's all about how comfortable you are with risk, and getting a reputable financial planner.
  4. Anonymous

    Anonymous Guest

    Lump sum became available in 2009. I plan on taking it instead of the annuity. AZ's pension was only 80% funded in 2010 and even less in 09 and 08. Read the book "Retirement Heist" by Ellen Schultz, a WSJ reporter. It will scare the hell out of you! American Airlines is getting ready to dump their 4 plans on the PBGC. Largest dump in history. GM announced last week that they will not make any future contributions to their pension plan but will put it in a 401K.

    Your pension with AZ is at risk like most pensions in America are.
  5. Anonymous

    Anonymous Guest

    I am quickly coming up to where I need to make this choice. I might have trusted Stuart. Astrazeneca? No Way!
  6. Anonymous

    Anonymous Guest

    I took the lump sum. I never have to worry about what the crazy management at AZ will do. I also put some of my 401k into 2 different annuities a few years ago that garauntee to return 7% per year minimum for 7 years. In a little over 1 year I can start using the 401k funds I rolled into an IRA and in a little over 3 years I will start early SS.

    I am actually living on more from my well managed lump sum than the AZ monthly options. And I have directed my financial planner to invest about 75% conservative/ 25% a little more risky.

    A well managed plan can turn the lump sum into a better option than the monthly AZ plans.
  7. Anonymous

    Anonymous Guest

    I've been retired for about ten years now from AZ sales. I was given no choice then, with only the newer employees allowed the lump sum optopn. I and others fought AZ over this, but obviously and venomously were refused the option. I took the maximum anuity, as my wife was an executive of a major financial firm and was well covered should anything happen to me. Nothing has happened, I am quite well, and have received approximately $600,000 from from my pension fund. It has worked out pretty good so far. I've been fortunate.

    However, the situation has changed, and all of you about to retire can take the lump sum option. I strongly urge you to do just that. AZ has become a company that can't be trusted to do just about anything that they can profit by even if it means punishing their employees. Just as American Airlines has just declared a technical bankruptcy in order to break their union and reduce their pension pay-outs, AZ could easily do the same (even without the union)....and who would doubt that they would not. Trusting AZ is not a good or a smart thing.

    Take that lump sum and run with it. Break that AZ bond once and for all, before they do it, anyways. Their health insurance plan for the retirees is terrible, and becomes fairly useless when Medicare takes over. Use it while you can, but don't expect that big lifetime $25,000 to last too long. Also, make sure you put that lump sum money in a IRA ASAP. It's your money and your future....be carefull out there.

    Good luck to all of you retiree newbies and to those of you who continue to work in another venue. It's great out here, away from the trivails of AZ...forever.
  8. Anonymous

    Anonymous Guest

    Posted from Cafepharma, AZ pages:

    Originally Posted by Anonymous
    Already there. Retired and hoping AZ doesn\'t dissolve.

    I'm in the same boat, quite a few years retired, with a pretty good pension ($58, 000), and living pretty good right now (thanks primarily to my to my great 401K that was thrust on me by my original RDM upon hiring, in spite of my then doubts).
    However, the possibility of our pensions being cut to the bone (by gov't insurance) is possible....but remote. The likeliness of AZ going bankrupt or out of business is non-existant in today's world. Company reserves are very good and the pension fund in America is strongly funded at this time. In case of a merger, or even a purchase by another company, our pension responsibilities will be transferred in full to the new company, protecting us in the future. Needless to say, anything is possible with AZ, but over-all things are a lot safer for those of us that are already retired than those who don't have a lot of tenure or personal reserves and are are still stuggling with the terrible problems that are happening now with our once great company. To those of you guys, we wish the best.
  9. Anonymous

    Anonymous Guest

    From your lips to God's ear.