Is it possible pension is zero even if rule of 75 met and retired?
18 replies (most recent on top)
Folks are talking about RCP being too high. I don't know what the threshold is (the magic number). Just as a reference point, my RCP is about $200k and my pension amount shows about $96k if I get a lump sum today and $189k if I get a lump sum at 65 (latest I can take a lump sum before it converts to annuity). This is per Fidelity's website. I have already separated from the company and when Fidelity gave me those figures, they were aware I had been separated. After reading posts here and in another thread, I am not sure when I actually request it (now or later), if I am entitled to the pension since my RCP is too high?
Oh yeah, @1vpl. I think there were some changes to those at higher grades than I am (so didn't bother to remember all the rules/changes since they didn't apply to me). Definitely search InsideBlue for the word pension as I said earlier. It was all spelled out in the minutes from one of the Money Matters club meetings on how the pension works.
Also, don't forgot that several years back Intel changed the formula so you stopped accuring value based on your years of service. They did this to essentially phase out the pension program. Yes, that sucks.
Did you call Fidelity and have them crunch the numbers and send you the quotes (and they showed zero)? Or did you look yourself on Fidelity NetBenefits site? I highly suggest calling them and getting an official quote.
With that said....(I'm the one that posted here and on another thread how the pension works in a nutshell).... that just got me to thinking....if your pension goes up and down until the day you lock it in, and it's zero today, can you wait till the market tanks (and you take a largish hit to your RCP) and see if you then might have something? It's worth a shot.
Good luck
OP here. thanks for the replies. Maybe my RC balance is high enough for a zero pension. Does anyone else who left has a zero pension balance?
You can take an annuity now if you want @-tfl. You don't have to wait. However, it will be more if you wait till 65 but you can get it now in either a lump sum to invest yourself or there are several annuity options (with/without spousal benefits). Call Fidelity to discuss. Once you lock it down it won't change and there is no COLA (Cost of Living Adjustment). It is what it is, period, if it even is anything. Some get nothing (those with a high enough balance in the RCP).
I wish this site supported threaded messages so one could respond to specific queries. Also a "like" function would be useful.
@ywi. I have been getting Intel RC for 17 years. Fidelity's website is estimating my pension lump sum to be below $100k. Can I be confident that this money is mine or can it be 0 when I actually request to be rolled over. Also, the estimation tool on Fidelity's website says the value of the pension keeps increasing by about 5% every year if I keep it there until when I am 65 and it automatically coverts to Single Life
Annuity at 65. Is that correct?
In a nutshell, if you have a lot of RC money from Intel and are in a higher grade (over Grade 6) you don't get a pension. If you have less in the RC fund and are Grade 6 or lower, you may have something, but don't get excited. It isn't called a MINIMUM pension plan for nothing. Intel is not unique here. Genuine pensions went the way of the dinosaurs back when the U.S. shifted everything over to the 401k system. I'm getting my pension as a lump sum payout and then rolling over into an IRA and investing. Minimum pension goes away as you get more RC and move up in grade. You can check what you have or don't at Fidelity and also work with them to roll it over. It is basically an annuity. Then, because they batch-process these, you may have to wait to actually get the money. I've been told I get mine either July 1 this year or January 1 next year. I think I got the paperwork done in time for the July 2016 payout.
I'm not going to school you @nwz . Call Fidelity.
Call Fidelity's direct Intel pension line at 1-800-557-1900. They are more knowledgeable about your options than HR.
I have no idea how retirement benefits work. My thinking is that we only receive the vested 401k in one lump sum. Do we all receive pension/monthly payments? How/where to check?
Dang! My pension shows I own 50 bucks a month to Intel!
wow.... it still refuses to post. I think I'll create a new post called 'how your pension works in a nutshell and paste it there, Sorry about that, folks!
seriously? I pasted it to repost and it posts only a freaking sentence?? This is getting annoying! Let me try again (at least it's in the paste buffer). mutter
dang computer deleted half my response and posted before I was ready! grrrr
anyway..... This formula )
Contact Fidelity. They can get you an exact estimate from Intel and send you the paperwork needed as it has to be signed and mailed back before anything can start.
dang computer deleted half my response and posted before I was ready! grrrr
anyway..... This formula )
Yes. I'm thinking you don't know how your pension works if you're asking. There's a complex formula that's used. (should be no surprise there. lol)
Here's how it works in a nutshell.... Your pension swings the opposite of your RCP (Intel Retirement Contribution Plan (what other companies call a 'match')). This formula )