Thread regarding Honeywell International Inc. layoffs

Pension FACTS! Don't worry about that rumor so much.

Per Department of Labor and ERISA, a company cannot change what you have vested and cannot force you to take a lump sum for what has happened to date. https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/faqs/retirement-plans-and-erisa-consumer

"Can a plan reduce promised benefits?

Defined benefit plans may change the rate at which you earn future benefits but cannot reduce the amount of benefits you have already accumulated. For example, a plan that accrues benefits at the rate of $5 a month for years of service through 2010 may be amended to provide that for years of service beginning in 2011 benefits will be credited at the rate of $4 per month. Plans that make a significant reduction in the rate at which benefits accumulate must provide you with written notice generally at least 45 days before the change goes into effect."

They can OFFER a lump sum, and they do, and they might even offer more than the current default shown at the retirement site, but you don't have to take it. See https://www.kitces.com/blog/irs-notice-2015-49-cracks-down-on-accelerated-lump-sum-pension-buyout-offers/

by Retired Fact Checker
| 3221 views | | 9 replies (last ) | Reply
Post ID: @OP+LkC9yzS
Comment! It's anonymous!

9 replies (most recent on top)

UK plan is converting to defined contribution and anyone who remains working will be considered as in the Deferred Plan on July 1. That effectively delays when they can apply for pension benefits from 63 to 65 or 67

by Anonymous
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Post ID: @Bmug+LkC9yzS

In 2001 or 2002 some employees had to choose which pension scheme they were going to go forward on. Some chose their legacy plans and some went to the Honeywell lump sum only plan

It is possible for Honeywell to change the go forward benefits. We just have to wait to see if they do change and what the options are. Then everyone will have to make their own decisions on their future path.....

by Anonymous
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Post ID: @5ljt+LkC9yzS

Ok. If there's 45 days warning like how they froze out pay raise in the pension calculation at end of 2015... we have to about mid February for them to announce a change effective for March 31. If we make to March then we maybe safe until Dave Cote fully leaves March 2018

by Anonymous
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Post ID: @3elv+LkC9yzS

Yes, I believe that they did something like that, but don't know how many sites were affected.

by Retired Fact Checker
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Post ID: @2euv+LkC9yzS

Didn't they "lock in" the calculation date a

couple years ago so you didn't accrue any more time?

by Anonymous
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Post ID: @2mzw+LkC9yzS

THANK YOU! I was trying to empathize the vested connection in the other thread. So much BS there.

by Anonymous
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Post ID: @1xiu+LkC9yzS

Thank you Fact Checker...Appreciate the research!

by Always Hopeful
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Post ID: @1ehk+LkC9yzS

No way can they force you retire to keep the monthly pension that you are currently vested in. They can do all kinds of things going forward, however that would have the least effect on the longest serving employees.

by Retired Fact Checker
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Post ID: @qmz+LkC9yzS

Are you sure they can't say.

If you stay they change it to a "fairly valued" lump sum, or if you want to keep a monthly pension you need to retire.

Sorry, My opinion, but I just don't put anything past this company anymore if there is a sliver of a chance they can legally "encourage" long term employees to leave.

by Anonymous
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Post ID: @zeb+LkC9yzS

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