Can Ford take someone's pension away? If someone is let go, don't they keep their pension no matter what?
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@vou+1nkZWdSp I couldn't find any age specific requirements about Healthcare only "if youre eligible " with no context other than you retired and were before 2001. So that's my confusion.
Based on your comment - if you are let go at 29 years of service and 54 years of age you get half your pension lump sum (because not 30yrs or 55age ) BUT you are eligible for the same Healthcare HRA funding amount (12k for u and spouse) as someone who retired voluntarily at 30 years of service and 54 years of age. Is that correct?
@vou+1nkZWdSp - you have the most accurate information. I've echoed this info to many. Not everyone gets it.
One additional info for everyone. The IRS segment rates are published monthly. Ford selected to use August to calculate the following year lump sum. GM uses a different month. Google "IRS Segment rates" to see the table.
Ford also users the IRS life expectancy table to factor in the lump sum total.
No you do not lose retirement healthcare if you get booted at 29 years and not 30. If you started before 2001, you get $500/month on separation. If you started after 2001, you get $800/year of service plus a little interest. So if you have 20 years in post 2001, you get a bit over $16K. In order to qualify you must be age 55 with 10 years of service. I believe the actual doc says 10 years of service over the age of 45. All this stuff is laid out in your benefits docs. This information is not hard to find.
Don't you also lose retirement Healthcare if you had 29 years of service (and not 55)?
I know folks who because they were fired with 27-29 years of service but under 55 who missed out on the $300K bump at 30 YOS or 55 with 10+ YOS. Not to mention if you wanted to take lump sum November 30 last year was the time to take it. After that it dropped 22%. And drops again 25% after this November. Due to the FED raising Fed Funds from 0-5.25% in a year. For pensioners time to get fired was last August with 9 months severance and taking the lump sum and ZERO ties to Ford anymore. Now you may as well take the monthly annuity and hope you have no tragic events as that is only transferable to spouse if you have one. Whereas the lump sum you have in your IRA as part of your estate making > 5% on treasury bills. Let’s pray the vaccines have no long term effects too as Ford made sure everyone who worked there was mandated to get the experimental jab.
Question: " If the severance pay is paid out monthly, does the pension continue to grow during that period? "
Severance is a lump sum. Your pension stops growing when your employment ends.
So, if you are let go, your pension does not go away if you are vested. It will not grow because you are no longer an employee unless you take the lump sum and it grows through investments you put it in. Otherwise you will get monthly payments from your pension at retirement.
Your pension doesn't grow linearly. THere are three ways it matures- hit 30 years at any age, hit age 55 and have 10 years of service, or hit age 65 and have one year of service. The amount it changes that you keep (as a lump) that year. It varies, but for some it can change by as much as double. So one day you get $250K the next $500K (made up numbers, they are different for everyone). If you get let go before your vest date, you get the lower amount, but if you get let go after you get your vested amount. Your pension lump grows until 35 years of service then stops growing. Also the older you are, the life expectancy decreases (annuity table) and so the lump declines. So, once you hit 35 years of service, your lump tends to drop each year. The lump is also calculated using a three step formula from the IRS based on interest rates in August. If rates from Aug 22 go up in Aug 23, then your lump goes down based on that (net present value calculation).
If the severance pay is paid out monthly, does the pension continue to grow during that period?
Actually, there is a bump depending on when you turn 55 and when you hit 30 years. I turned 55 last year and my lump sum calculation jumped about $300K. I'll have 30 years this November and the calculator says I'll get about a $90K bump in September. Calculations by coworkers that turn 55 after hitting 30 years showed them getting one big bump at the 30 year mark.
You can not lose your pension. Anyone saying otherwise simply doesn't know what they are talking about. There is nothing particularly magical about 30 years either. There isn't any kind of bump. All of this is specified in the SPD for your pension.
you dont lose your pension, but if you get let go before 30 years it isnt really worth much
Pe--son are safe. unless Ford files for bankruptcy than the Feds take it over
Some people posting on this site seem to be saying they lost their pension. But I don't think that's possible, even if you get fired for cause.
Yes, you keep what you have made so far. I took the lump sum and moved it to a roll over IRA so I never had to deal with this company again.