I've heard this a few times - " the IBM annuity provides an early retirement subsidy". Can someone explain the exact details of this. I'll have 30 next year so...
These are all fantastic comments, reminding us of the pluses and minuses, and that there are no guarantees in anything even long term plans (long term plans...
... If you are concerned about inflation, I believe one can buy inflation adjusted annuities. An alternative investment would be TIPS or equivalent which are...
The subsidy is basically an increase in the amount of your monthly annuity payment that makes it more than the underlying lump sum would otherwise pay you....
... Warning: The following assumes you are on the PCF plan , not the cash balance plan: Tom, The normal retirement age for ERISA purposes is Age 65. That's...
... Wow, 38 years. I can't envision that at this point for me. Terminating the pension plan would probably hurt IBM more than help at this point. Most of the...
There is also another but normally * improbable* gotcha re the 60 to 65 subsidy. IF- repeat IF - the pension plan was to be taken over by PBGC, the early...
I don't think you are quite correct on part of your explanation. When you do a netbenefits estimator run and use a date 1 month short of 30 years vs a date...
... From: north99manverm Sent: 06/01/10 08:52 PM To: ibmpension@yahoogroups.com Subject: [IBM Pension] Re: Termination of Pension Plan ... If you are concerned...
In my earlier response to your question, I didn't get my facts quite right. I said that the subsidy lets you retire before age 65 with no reduction in your...
Hey, Thanks for all the explanations. I've been gone around with my manager some on this (he is in about the same situation as me). Here's the way I understand...
... There is a maximum reduction of 10%. If you had 30 years, you could retire at 48 with only a 10% reduction. ... When I applied my numbers to calculate the...
Art-Vandalay. . . .it is all about the money. 1st no serverence payments, 2nd no liability to fund the plan should planned liabilities (pensions) exceed assets...
Mad - You are correct (as usual)! In my haste to answer both questions I managed to confuse myself! The 91 plan had the true "30 + out", i.e. no reduction...
You've got it figured out pretty well. Since you are over 55, you are already retirement eligible. So reaching the 30 year mark will not enhance your pension...
So, just to recap for my specific case: 1. As I am over 55 with over 15 years of service, I am retirement eligible. Therefore my years of service is basically...
Does anybody have any idea when this will become official? Or is this just speculation? If I am going to have to retire at the end of this year I need to be...
The subsidy is a part of the annuity at any age up to 65. You receive the maximum benefit of the subsidy up to age 60 after which it decreases and disappears...
... Even though the monthly payment is reduced by 2%/year, I would not describe it as a penalty. This seems to be an emotional term that could mislead you. ...
AFAIK - It is NOT official so far as anyone knows at this point... Part of (one version of) the rumor was that it would be announced in June... but at this...
markeby, so far I have only heard this rumor from one source. The post that brought it up on this board. Everyone else who has talked about it that I have...
Tom, your numbers seem a bit different than mine when I ran the estimator and then projected pension money received out until age 80. I assumed I'd die...
It is not clear to me exactly what you entered into the estimator and what results you looked at? 1. Did you look at the single life annuity and base your...
Is there someplace where we can see what a lump sum payment would be. On the estimator I see there is a lump sum combined with an annuity, but I do not see any...
For the estimates, I am selecting to "Estimate a payment amount from your pension plan using different separation dates." I then enter an age of 59 for ...
I was considering this as a penalty because it seems to be an amount added on top of the reduction due to the increase in the expected length of time drawing...
correction - the one line should read: * a average retirement savings of less than $70K for those over 55 years old I left off the 'K' in the retirement...
I did some similar math when I left IBM several years ago. I had 31 years and left to go to work for another company that was offering me a better job. One of...
