Thread regarding Ford layoffs

@6ylh

I don’t think UAW gets full healthcare for retirees for those employees hired after 2007 or so. I remember some structure called VEBA owned by UAW that was created so Ford could push off UAW retire health legacy costs to.

The VEBA might still be there to cover previous retirees, but I’m pretty sure those hired after 2007 don’t get coverage. Unless UAW itself offered to do it thru VEBA . Ford wanted out.

Just like salaried retiree health care.

The UAW employees gets guaranteed health benefits for life. I am married to a GM UAW retiree (who retired at age 49 after 30 years). His medical benefit is $30 per month for the family. We even received an OTC card that covers $200 every year for the next 4 years.

@4crm

OP here….The Viabenefits rep is very helpful. My understanding is thru Viabenefits there are “on marketplace” policies and “off marketplace” policies. I can check out the “off marketplace” a bit more thoroughly on my next call. They might be short term policies of bare bones policies designed to look attractive for a lower price. Have to confirm though.

My first call, before Viabenefits, was to BCBS, as I heard of another Ford retiree continuing his same COBRA policy at same COBRA price. BCBS rep told me they don’t do that, and routed me to another BCBS sales rep who helped me get data on 5 various BCBS bronze/silver HMO plans.

I am curious, what about UAW retirees? Do they get heath insurance or just the 500 per month like salaried people. (i.e. does Ford treats everyone the same?)

@OP

If you find something better outside the exchanges, please advise. I checked USAA and they had the same healthcare providers at the same cost. I'm guessing this is the reason many retirees get jobs to just cover the healthcare costs until they are Medicare eligible. Sadly, Ford's scheme to reduce their healthcare responsibility is capped or you can keep your AGI low to maximize your subsidy; which only works if you have enough after-tax cash to fund your lifestyle and low expenses to 65. Signed, Angry Ford Retiree

Healthcare is a scam.

Easy solution for salaried workers - just keep working at Ford until you're 65... oh snap, they will not allow that either. Should be criminal the way Ford treats salaried workers. Advice for young professionals: run.

@wkc+1s0fr0MJ ... Thanks for telling us "You should be thankful that you get $500 per month" when Ford promised the Pre-Medicare retirees they would get "Company Sponsored" healthcare until they reached 65. Then they added additional co-pay cost for years until they pulled it out from under our feet in 2001! The $500/month does not even cover 30%-50% of the healthcare costs! And we just pray that we don't hit the family deductible of an ADDITIONAL $16K/year on top of the premiums!

It was a slap in the face after working for the company for 30 years!

Now facing out of pocket cost up to $40K/year just for healthcare, it really changes your standard of living when you budgeted for retirement on a fixed income.

No wonder everyone who are still at Ford are so bitter!

It will be tough to keep your AGI under $55000 if you worked 20+ years at Ford.
Every situation is different but majority of the retirees would greatly benefit from the $1000 / month bridge that Ford offers

Bingo! If you you keep your adjusted gross income low (max 225% of poverty wages or about $55,000), you will be better off taking the subsidy from the government and not Ford's monthly credit. The Ford credit helps for higher income individuals. As someone mentioned, its not great but better than nothing which is what most companies provide, zero.

Then again, will you really get caught if you take both HRA and ACA subsidies? It’s not like govt is any good at preventing such things.

@jby

That is interesting. Ford every 4-5 years would claim to say they are doing “market comparison benchmarks” for salary/benefits to remain competitive. Looks like that didn’t work out.

However, in your new company, are you getting decent profit sharing comparable to Ford, same health insurance options, and 401k matching, vacation, etc?

@ayw

That is total taxable Income for two. A modest amount, one can supplement if you’ve got some Roth funds available of some stock holding to sell with modest cap,gains.

Then again, if you have 401k or traditional IRA, it might be a good idea to look at converting some of those funds to Roth now, given the 12% tax bracket goes up to $92k for married filing jointly. This disqualifies you for ACA premium tax credits/subsidies, but then you can leverage the $1000 Ford HRA (total for employee/spouse)

“taxable income to $55,000 one will get $1000 subsidies on healthcare.gov”

Is that per person or for two?

@wkc+1s0fr0MJ I have no problem with any other company paying $0 per month for the healthcare of the retirees, as long as that company paid them a competitive salary while they were employed.

At Ford, however, the employees were more like the teachers: they got underpaid during the working years so they could have a decent retirement. The issue is that now Ford is going back on its word, cutting the benefits for the retirees. The idea that employees would get "compensated" in the golden years is now sinking faster than the Titanic, and it is unfair for all those that dedicated half of their lives to this company.

For example, I am currently interviewing at another company for a position that pays $6k more annually, and the position is not as senior, nor as technically complex as the one I am holding at Ford. Therefore, I am currently getting underpaid for more than $6K annually. On a 30 year retirement, I would have "not earned" over $180K plus interest.

You should be thankful that you get $500 per month. Most other companies gives you $0 per month.

Oh Wow

I agree! The $500 stipend was frozen in 2006 (I believe), and does not get adjusted for inflation! (just another way Ford had stuck it to it's retirees).

If you were to adjust the $500 for inflation, it would be worth ~$775 today. Thank would be a bigger help, and you wouldn't have to scale back your income to $55K.
https://www.in2013dollars.com/us/inflation/2006?amount=500

But again, Ford treats us as "Family".

Thanks for the insight. Somthing to keep in mind when leaving prior to age 65.