Bad times in the stock market and interest rates rising. Ford Pension not so bad right now.
12 replies (most recent on top)
It just amazes me how the quality of discussions deteriorate on this board from time to time- don't act on junk from this thread. Call the NESC to understand when EXACTLY interest rates reset and the ASSOCIATED EFFECTIVE DATE OF THE RESET. Yes, significantly higher interest rates, as we're seeing, will most likely reduce YOY lump-sum payouts substantially. One poster hit it right when he/she said you would effectively be working for free, much more so as you climb salary grades.
I don't think the NESC can model in higher rates prior to the reset, so get an independent analysis on this, even if you have to pay for it. I wouldn't rely on "home brew" calculations or those from some spreadsheet floating around. Wouldn't it make sense to pay say $1000 for an accurate assessment in order to save being off maybe 10's of thousands trying to do this yourself? I think that's a pretty good risk/reward.
HR told me. . If you retire 12/31. The lump sum will be based on the 1/1 you will not get the previous year rates. I discussed it with HR in 2021. I told them the December amount shouldn’t even be published. Read the fine print about how and when it’s paid out.
This is the same HR that pulled the rug on health benefits after pushing people into early retirements. How much do you trust them? You must collect your retirement prior to Jan1, 2023. You cannot retire and collect in the same month. Better safe than making a costly mistake.
And HR is absolutely trustworthy, gotcha!
Who told you YOU MUST RETIRE BY NOVEMBER 30th??? HR's response as long as you retire by the end of the year, In Effect, December 31st. You will get the lump sum calculation for 2022. Of Course HR is know to be wrong in the past.
The Pension estimators will adjust late Sept or in October with the revised Lump sum amounts. Estimate are running running $150k+++ or more less in the lump sum payout for 2023.
Ford locks the August IRS Segment rates for the following year. YOU MUST RETIRE BY NOVEMBER 30th. TO GET THIS YEARS RATES…. If you wait till December your lump sum will be based on 1/1/2023 …. A much smaller pay out. PAY ATTENTION! Sorry but I felt I had to yell.
“If Ford goes under, the lump sum will have looked great. Don't hitch your horse to a broken wagon.”
Exactly why I took the lump sum. I want to get as far away from Ford as I can. District possibility that the company may have to declare bankruptcy and/or be bought out. At that point, pension obligations are iffy at best.
They run the company like they run the football team...
Interest rate spike will cause a mass exodus before the end of the year so people can get rates from August 2021 instead of August 2022. Otherwise they will be working for free (and then some) next year cause that lump might be 20% lower. No joke, run the numbers.
Lump sum will go down next year. IRS Segment rates are going up. When rates go up payout goes down.
If Ford goes under, the lump sum will have looked great. Don't hitch your horse to a broken wagon.
Interest rate rising hasn't impacted lump sum calculation yet.