How much does your pension go up?
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I'm over 55 but short of 30 years. When I do projections, I don't see any massive increase after 30 years. There is some reference to some higher benefit in the Summary Plan Description, but I don't think it is significant.
30 years makes you eligible for retirement - even if under 55. If 55 with 10 years, you are eligible. For those over 55, all 30 years provides is the early retirement supplement, which gives a larger monthly payment until you are 62. Other than that, it is just another year of service.
Using retirement projection tool…. Lump sum goes up about 5-6% per year of additional service
Anybody hired after Jan 1 2004 is in the FRP. The money you save plus what ford gives you is your lump sum. There is no pension. Not sure about health care money but in 10 or 20 years that will all be different anyway.
The two key mile stones for people with GRP are reaching the age of 55 with 10 years service, or reaching 30 years of credited service. When you hit one of those two life events you become legible for retirement and your lump sum payout goes up approximately 40% the next day. Then after that it increases at a slight elevated constant rate tell you max at 35 years service.
Ford has twice intentionally target GRP people for termination who were under 55 with less than 30 years of service because is has the greatest cost saving to the Company. Both times Ford was sued and settled out of court for a undisclosed amount without admitting blame. The total legal cost to settle the suits from SRD was approximately $72M.
Here you go...
How the Plan Works:
Retirement Types: Here is a summary of the eligibility requirements for each type of retirement, including Deferred Vested benefits if you "break service" before meeting eligibility requirements for retirement.
Normal Retirement:
Age 65 or older with at least one year of Credited Service
File an application
Regular Early Retirement:
At least age 55, but less than age 65, with at least 10 years of Credited Service
Any age under 65 with 30 or more years of Credited Service
File an application
Special Early Retirement:
At least age 55, but less than age 65, with at least 10 years of Credited Service and you are released under mutually satisfactory conditions or at Company option due to your inability to effectively perform your assigned job duties. Refer to the Special Early Retirement section for details.
Eligibility criteria set out from time to time for open-window offering
File an application
If you have 30 years, you can retire regardless of your age. You could be 52 years old, with 30 years, and retire. The other milestone is 10 years of service, at age 55. So, the only thing special with the 30 years is that you are eligible to retire no matter your age.
When I run projections in the system I don't see anything dramatic happening at 30 years. I have wondered the same thing because those on the GRP always talk about it. I can't figure it out.
Between 28 and 30 about $500 a month for an annuity or $100,000 for lump sum.