Pension calculator updated and it really looks good for those who want out next year!
Told PRP "unlikely" as company won't want to pay more than it has to.
4 replies (most recent on top)
PRP usually comes with a package based on years of service. You are right as it is technically a lump sum payment.
But the discussion about "lump sum" in this topic is the lump sum alternative to a pension.
I only remember one PRP that also provided a lump sum payout. It started with an offer of a six month lump sum then upped it to nine months to encourage a larger number of people to take it. We were told earlier this year in an all hands meeting that they weren’t doing PRP in the near future because they wanted more control over who leaves the company but they do change their minds so only time will tell. If you are thinking about leaving and there’s a PRP with a buy out that will have bigger financial advantage then severance. You get benefits for a longer period of time and can keep the management lease vehicles for almost a year. In some cases they give you ford benefits until you’re eligible for Medicare. Severance depends on how long you’ve been with the company and if you have lease vehicle you have one week to turn it in.
I believe Ford and GM asked the Federal government whether lump sums were legal. A process was developed where the lump sum amount was determined and adjusted at a minimum of once each year. Ford choses to adjust the amount once a year. The IRS provides the estimates of future returns.
Boards approval is probably mainly an information sharing event.
Confused, as PRP does not necessarily cost the company more money. It only did that in 2018 because they offered the additional 9 months lump sum to get more people to take the offer.
However, they have not always done this in the past when announcing PRP opportunity...I think if you go online to the policy notes for PRP, it does not mention lump sum payments, as that is not a standard thing, it is up to the E suite and board to approve that amount.
However, since they have been very good the last year or so in covering their tracks, I guess none of us will know about PRP for 2020 unless & until they make the announcement.