Voluntary Separation Timing

What are timelines for leaving for another company or taking early retirement as it relates to benefits ? What are things to consider ?

 

What is your age plus years of service? The NetBenefits site will model your retirement.

 

Net Benefits only models retirement based on the current interest rates, not knowing the future so the future model calculation in NOT accurate.
Only accurate element in the model is if you decide to leave now with today's interests rates.
99% likely that future retirement benefits will be far LESS than what is showing given current interest rates 1/2% (just 2yrs ago 2018 was 3%)....... rates can basically only go up in the future (each 1/4% increase is decrease $50k per million, so 2018 rates 2% higher than today then benefits would be loss -$600k on a million )

 

Many things to consider, in order or importance is:

1) Interest Rates- you want lowest rates possible --- currently 1/2%-- as lower the interest rates the higher your pension payout. Higher rates = lower payout as inverse.

2) Age + Year Service-- legacy Pfizer 100% at 90, Wyeth 72, Upjohn 70, ect.

3) 40 plus 15 yrs service & Rule 62 you get the Retirement Medical (which is not applicable if going to take another job w insurance)

4) Are you going to truly retire & stop working OR are you going to exercise Pfizer early retirement eligibility that you earned last 15+ years and get another job to build a 2nd retirement benefit????

 

Lot of elements in early retirement over 40 w 15yrs plus of Pfizer or legacy co employment.

In the end it just comes down to if you are going to stop working then make sure you can live off your retirement benefits & side investments.
If you plan to early retire from Pfizer & take another job, then Lock up the Pfizer retirement now asap while interest rates are lowest they can every be for benefit purposes. Just land another job soon. This option is a no brainer if you can get another employment with equal salary.

Good luck

 

Take the lump sum, invest wisely and your payout will be the same or better. Roll your 401k out of Fidelity. Sever all ties with Pfizer. Talk to some retirees. Medical bene prices are ridiculous and/ or high deductible plans. Dental sucks.

 

It’s almost always the case that you shouldn’t leave a job without one to go to. If you have your 90 would you leave now regardless due to current interest rates and then try to find something ? Hiring now is strange to say the least

 

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If you are between 55 and 59 1/2, the advice to roll 401k is bad.

 

What are you an Art Major !
When interest rates go up just 1% after election, your Million dollar Pension value will be worth only 650k with just 1% rate hike.

Given almost 0% rate, your pension can only go down so its bad advise to stay at 55.
Wow no wonder the industry thinks Pfizer reps are as bright as a burnt out light bulb.

 

Taking a pension lump sum is incredibly stupid if you work for Pfizer. Your personal or advised investment strategy will not replace the security of pension payments. What you do is retain the pension and use it as a component of your entire portfolio. In this manner, Pfizer holds the pension risk while you are free to invest as you see fit.

 

Where did you all get educated???
Pfizer OWNS your Pension as a company asset-' IT IS NOT YOURS AT ALL EVEN WHEN RETIRE IF TAKE THE PAYMENTS.
It is only your asset when you take lump.sum.

If you take monthly pension payments when you leave, even w spousal benefits, and within couple yrs you both die in car wreck, do you know who gets the Million + balance of your Pension?????? Obviously you dont! Pfizer keeps it dude! Only Risk pfizer carries is if you live to be 110!
ALWAYS TAKE LUMP SUM SO YOU CAN WITHDRAW SAME AMOUNT MONTHLY FROM INVESTED IRA AND IF YOU DIE EARLY THEN YOUR KIDS GRANDKIDS HEIRS GET THE 1-2 MILLION BALANCE.

Sounds like you had zero clue about this. You need to educate yourself & if needed talk with a pension attorney dude.

 

You are 100% correct!
And yes it is amazing that most of Pfizer employees do not know or understand how their Pension is calculated, impacted by interest rates, that Frozen means not even money market returns, and most important who OWNS the pension funds with monthly annuity pymt & who owns with Lump Sum IRA rollover.
So many think it is like a 401k & 401k rollover which the employee owns 100% once vested.

Wonder if Pfizer doesnt want to educate as most pass before Pension funds run ou& co keeps & more important Pfizer has 16 Billion of Pension funds on balance sheet as assets which by law 80% has to be secure but Pfizer makes bond, fix income interest off that 16 Billion as well as leverages. The last thing a company wants is to be sending out thousands of million dollar lump sum checks on an asset of 16 billion they are earning 3-4% interest (or 400million a yr in interest Pfizer is earning off that balance-- that is more than products in Endo, Rare Disease, Derm, Xeljanz, ....

So thats main reason Pfizer doesn't educate.
The Pension balance asset generates interest income for co.

 

Companies want to unload pension risks by offering lump sum payouts. Taking lump is not the best option

 

You are a complete idiot & know nothing about Pfizer pension FROZEN (also look at year end financials in depth-- if you have any financial IQ) Pfe made 392million in interest off of the 16 billion listed Pension assets!

Go back to your useless hole & CSO.
Giving bad info to reps due to your low business IQ POS

 

Agree you are a bozo w that comment.
You probably have a total net worth less than 5million anyway, likely less than 2 million so go back to your CSO gig .

 

No, you are incredibly stupid. Historically Pfizer did not offer lump sum distribution.
Why? Because they benefit more than you do by paying your monthly pension.....with little risk, which is accurately explained in other posts.

 

$2 million with little/no debt, provides a very comfortable lifestyle in retirement.
The only people who disagree and benefit are the financial companies who fool you into believing their bs about what’s needed.
The question to ask any financial advisor is whose retirement are you most interested in, mind or yours?
You, obviously, are one if their dupes.
I have nearly doubled my lump sum payout in 3.5 years and it’s 100% liquid, as well as all mine, while pensioners are stuck with their fixed payment that erodes over time via inflation.

 

And my daddy can beat your daddy in a fight.
Grow up, Skippy, and get your head out of your butt.

 

ERISA 4022 Lump sum pension rates can be found at the Pension Benefit Guaranty Corporation. They are currently at Zero and will remain so for quite some time according to federal reserve. But I agree with several of the posters that this would be a great time to take your pension IF you can find a comparable job.

 

dont get defensive when you are called out for moron comments that are false & zero financial sense.
Dont take it personal, just try to improve your business IQ to better yourself.
IDK maybe your lack of intelligence is not your fault & you are from a bad gene pool.
The dude's comment was spot on, you are a Bozo but x10 because your statements are so uneducated.