For layed off employees like myself, if/when adp sinks and goes under from all of these terrible decisions what happens to the pensions that tenured played off employees were due from adp? I've never gone through this before so have no idea. Am hoping they dont screw us out of that ( put in my time in hell at adp and want that pension , I earned it )
10 replies (most recent on top)
I took the VERP and rolled the 401(k) to my personal IRA. I elected the monthly payments from pension because they will continue until I die which means I could potentially receive more money from ADP than they offered as a lump Doewill break even in about 15 years and it is such a small amount that it doesn't qualify to have tax deductions. These payments should continue as long as ADP is in business or if someone were to come along and acquire the company. I'm not worried about ADP going under before I do.
anyone else find it odd that in the last 24 hours 12 people have posted negative on this and prior post about taking pension / 401K out of ADP ?
My financial advisor always recommends to take the lump Doedid that and rolled it over along with my 401k so I’m no longer dependent on what happens with this screwed up company!
I also took my ADP pension lump sum. Now I don't have to worry about this ADP "unsinkable" Titannic ever floundering and sinking. I have everything that I need from them and they don't owe me anything. Now they can sink in peace.
I rolled both the pension and my 401K into IRA's.. I don't want anything to do with ADP anymore.
I took the ERP and the annuity. Went back and forth a few times deciding whether to take the lump sum or the annuity. My financial planner ran through the different models to help me decide.
There's no right answer that fits everyone. All of our situations are different. Depends on expenses, projected income, risk tolerance, what we have in other assets, what we want to leave our heirs, etc.
I'm in my mid 60's, 30 years with ADP. Even with the current batch of rocket scientists running the ship, I don't see it totally collapsing in my life time or at least collapsing without any warning. So I opted for the annuity. Felt not too bad about that decision a couple months ago when the market corrected. My IRA has just recently recovered those loses. But the market does grow over the long term. Short term dips can and do occur.
ADP still prints a lot of pay checks every week. That's what ADP is known for and what keeps most of the lights on. And they still produce the monthly employment report for the government. So I see that as ADP still having the market share of company payrolls. For now.
Take the pension or the lump sum? Think it through based on your personal situation. Know how you'd handle it if any of the "what if" situations occurs.
Spoiler alert.....ADP is not going to sink.
You could cash out your pension and invest it in a ROTH IRA or another kind of investment shelter. Stop complaining about what might happen if the sky falls. If you're nervous do something to protect yourself or live in ignorance and suffer the consequences if your crystal ball predictions one day come to pass.
Depends. Find out if the pension is insured by Pension Benefit Guaranty Corp (PBGC). If so, there's some protection by the federal government as part of the Pension Protection Act (2006). If ADP pension loses funding, you'd receive a benefit from the government but it won't be the full amount ADP pension would be paying. If it's not insured by PBGC, then you're on your own unless it's insured some other way.
Open a individual IRA account and roll it over to that account, then invest it to other options in the account. Call Mercer and give the the new IRA account number and institution name. The check will be mailed to you made out to the new IRA account. You will then take or send it to that institution for deposit. Do not have the check made out to you or the tax man will be calling next year. You can leave any 401-k with ADP until you are 65 if you took the ERP.