Is that how it is supposed to work? I worked for 30yrs. Have a sizeable 401k
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OP here. Clarified with Fidelity. Value of 401k does not matter. Value of Intel contribution Retirement account is so high that pension not needed and therefore will be zero. Not complaining, but at least now I know
Your 401K balance does not impact the miniumum pension number at all, your compensation and the balance of your INtel Retirement Acct ( old SERP ) are what matters here..........
I had a 401k full of proprietary products to choose from .
Only saving grace to the thing was the company contribution , otherwise I would have been better putting the money into savings bonds or CDs. Plans s--- up any profits through fees and commissions, and the fund director might as well be a chimp.
@OKDAkLQ-2kdw, thanks. You have $36/mo. Great. Mine is zero.
What is that 401k value above which the value becomes zero?
anyone knows?
The Fidelity calculators are garbage and the Fidelity people behind the desk are useless
I contacted Fidelity today about rolling-over my Min Pension Plan and was told there was some formula that Intel used that takes my MPP current value of about 37k today to 57k in 10 years when I turn 65. He said that the 10-year value is already set aside for me by Intel. However, as interest rates rise, my balance would go lower so I put the request in to move my money once I heard that bit of news. I thought it was the opposite, if interest rise, so would my MPP.
The fact that it's sizable is likely what's making it zero (if it's not one of many other reasons like your grade, etc.). In a nutshell, Intel has some magic number for everyone that is based on some formula. If you have MORE than that magic number, you get nothing. If you have LESS, then you get only what it takes to get you to that magic number. That's the gist of it.
There was also some talk a few yrs ago (I think it was the assistant treasurer that came into a financial club meeting) that hinted about it going away and basically said that if you saw a balance, and you wanted to make sure you didn't lose it.... the only way to do that was to lock it in by leaving Intel. Otherwise you risked it going down or going away.
There's more to the formula as I tracked it daily for a few yrs and watched it go up and down. I do not have access to the formula. I don't think Fidelity does either but I could be wrong. I checked my files to see if I had notes on it and unfortunately I do not. I guess I deleted them when I cashed it out as I no longer needed the info. Sorry about that!
I have about 200k in my 401k and 26 yrs at Intel. My pension is about $36 per month. WTF?
The Fidelity web site has excellent plan information available. I found it extremely helpful.
This issue has been thoroughly discussed before, both in this forum and on the Intel Retirees Facebook group. Basically, it's an inverse relationship: the more you earn and the more you have in your Intel retirement account, the less of the Minimum Pension you are eligible to receive. And, if you do still have a pension balance, remember it is not a guaranteed (ERISA protected) retirement benefit, but an insurance annuity. Intel stopped the pension contribution for Grade 7 and above in 2012.
Call Fidelity, they are the retirement provider for Intel. UBS is stock provider
I took erp a year ago, and you had to play with the pension tool... people got a lot more than me, and some less. I can't remember the screwy algorithm they use, but it's based on your pay. Call UBS.