Does anyone remember what year it was that Intel replaced the Intel Minimum Pension Plan with the 401k pension contribution plan?
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I left Intel last year and was notified that I had a minimum pension. The amount quoted by Intel was "x" and Fidelity confirmed the "x" amount. When I requested from Fidelity a rollover into an IRA account (so that I could manage the money myself), I was surprised when the original amount quoted to me by both Intel and Fidelity was $3K different. When I inquired with Fidelity as to the difference, they told they went back and saw that I had taken money out of my RC account in 2009 (I left Intel in 2009 and subsequently returned) in the amount of $1450.00 which reduced the amount in the minimum pension by $3K. I am still trying to understand their formula. If there is anyone in HR that reads this post, I would appreciate a more detailed explanation as Fidelity does not provide one. Thank you in advance for responding.
2kyg is correct. "Minimum pension was a non benefit, long gone, that only applied to the lowest paid and shortest term employees. If you were there long enough and as your RC account grew, it went away anyway."
It was eliminated in around late 2012 or early 2013 for new hires and those Grade 7 and over, I think. Until then it ran as a supplement to the 401k; the 401k was never a replacement for the minimum pension. If you worked at Intel long enough, got to a high enough grade, and as your Intel RC balance grew, your minimum pension eventually went away. It was a non-benefit for the majority of employees.
I was a 22 year intel'r that was kicked to the curb with my first level 4, thanks BK for the totally fair ACT
But at least I also cleared a 6 figure payout, check your fidelity carefully and decide if you want to roll it over or let Intel manage it. I rolled it over as manger proactively you can do better
Re:Although I have far more money in my 401-K and SERP accounts, and was under the impression that by doing so I essentially eliminated the possibility of getting the Minimum Pension Benefit, that is not the case. "
I too was surprised that I got a pension because I maxed out my 401k almost every year and it was sizable. I'm thinking they don't take that account into account and only base their formula on how much is in the RC?
While it wasn't much, I was happy to get something when I left. :)
THis is not a true statement: "Minimum pension was a non benefit, long gone, that only applied to the lowest paid and shortest term employees."
It didn't just apply to the lowest paid and shortest term employees. I know an engineer that was there longer than I (at 15 yrs) that had a pension available to him. I was shocked when I heard how much it was estimated at per month. A LOT more than mine was (I was an admin so one of the low paid employees).
I believe it was 2011. As a person nearing retirement, I have been reading a lot of the material on the plan, and it is surprising. I was under the impression that is was as previous commenters have posted, but it is not. Rather, if you have been at Intel for a reasonably long time, e.g. started prior to 2011, you will have some amount of Minimum Pension Benefit that will pay out as an annuity when you turn 65 (by default, there are other options), even if you leave the company before that. It can be substantial. Although I have far more money in my 401-K and SERP accounts, and was under the impression that by doing so I essentially eliminated the possibility of getting the Minimum Pension Benefit, that is not the case. Rather, just by doing nothing I will get ~$1K/month when I turn 65. Not huge, but it is in addition to, not instead of, any other benefit. If you are with Intel or a retiree, you can get this information from your Fidelity account.
Minimum pension was a non benefit, long gone, that only applied to the lowest paid and shortest term employees. If you were there long enough and as your RC account grew, it went away anyway.
I remember him saying it was eliminated because he didn't understand it.
2013 the year that klown started
Do you mean what year Intel stopped offering the minimum pension plan to new employees? It was a supplement to the 401k plan (SERP) as a safety net but now new hires don't get that.