Thread regarding General Electric Co. layoffs

Did anyone get a really low buyout offer of less than 50k? I have about 13 years and had some low pay years in this recent buyout?

received pension letter from GE and the buyout amount does include my contribution and GE's contribution... north of $200K

• Option A = lump sum,
• Option B = reduce monthly starting now
• Option C = full monthly starting at 60 or 65

Looks like this is coming around again (Oct. 2019); we'll see if they make a decent buyout offer this time as the last one was seriously undervalued, as the OP experienced.
To those who think the value is between "full value" and zero, the downside, even if GE declares bankruptcy, is much better than zero (see other posts on Pension Benefit Guaranty Corporation). At least in my case (a former employee), I don't have any benefits that aren't basic except possibly for ability to take early (age 60). I'm not positive if that's considered 'normal retirement age' or supplemental.
https://www.pbgc.gov/wr/benefits/guaranteed-benefits

If you've got a big pension coming, this could affect you:
https://www.pbgc.gov/wr/benefits/guaranteed-benefits/maximum-guarantee

yep

Take money and run. I retired was going to take pension out and put in IRA, GE will not let me, says can no longer be done. Tried finding out if there anything I can do. But can't find anything any where or ask anyone what I can do

I also called GE benefits about this question and the person obviously did not understand that VPA/PPA are not the same accounts as the regular pension. VPA/PPA are after tax dollars excepting the paltry interest. I was told lump sum on VPA/PPA would be taxed and that my regular pension would pay me monthly "after tax" dollars. This makes no sense since the Pension and VPA/PPA are completely separate accounts. So I have yet to find anyone in GE Benefits or anywhere else who understands this issue

I worked for me 18 years and only get 580 a month starting in October

"Looks like the coverage is about 80% of your pension benefit."

Generally it's higher than that. Up to 100% for smaller amounts.

The GE Pension plan is insured by a quasi government insurance PBGC. Google PBGC and you can look at percent of protection if GE was to file bankruptcy. It varies by year but does seem to have a COLA provision by year. There are tables, by age and if you applied for survivor benefits. Looks like the coverage is about 80% of your pension benefit.

Leave your pension alone... DONT TAKE IT OUT.. U WOULD BE STUPID.. THIS IS WHAT GE WANTS U TO DO..

Will the PPA/VPA roll over to a Roth IRA be taxable ? Post-tax funds were taken from my paycheck for my pension contributions. However, the taxable amount on my benefits page is almost the entire PPA/VPA balance.

I got a pension buyout letter in September last year. 1 time offer, 30 days to decide. I worked at GE 1985-1993, 1st job out of college, low pay back then. Had a few communications with GE Pension office past few years, 7 different annuity options, but basically my pension annuity starting at 60 would be roughly 445/mo. I took the offer, got a check for just shy of $50k and rolled it into an IRA in late December.

1ain - sorry, ma'am, wasn't trying to be rude and would never want to upset any women on here. All the very best in your forthcoming retirement.

That woman up-top—-scroll up, needs a pad..... geez

Really.....what was rude? He was clearly joking, lighten up. That's what dudes do.....and dudettes. Otherwise the human race would have died out a long time ago.

So basically what the first guy/gal said...take your $ and run!

Sorry but I’m a woman and you just insulted all women out there with your rude comment. I am actually going to be financially sound in retirement and will do the right thing because I am researching all the options now. Thanks to all the people who helped me out!! Very appreciative for all of you!

Who cares just take the twenny grand and have a good time on the gambling tables, chasing women, booze binge, etc. You sound like a boring old fuddy duddy.

Yes, that’s right. But again, I was a Corporate IT / Digital idiot

Thanks for that. So I think I am starting to understand it as I read my GE Pension options letter again. If I am reading it correctly, I can take out the PPA/VPA money now (what I contributed, which is approx $20k, and roll it into an IRA) and I will still have my base monthly pension from GE when I retire in 20 years (only at a slightly lower amount without the PPA/VPA, which in my case is only $77 different per month). So technically I’m not foregoing or giving up any of my pension from GE contributions when I do the rollover of the PPA/VPA. I just have to assume it will be there in 20 years (and that is a risk). But since GE gave me no buyout option on their contributions (which would have to be a number like $300,000 to make it work), then that discussion is moot since it is not an option for me right now.

Thanks! This is so confusing the way they lay it out. Your explanation makes most sense. I think I will rollover the PPA/VPA portion of $20k to manage myself... and then (hold my breath) and hope that the real bulk of the pension ($2000/month for life) is there for me when I retire.

also I’m not a financial advisor or any of that, I just worked there for 16 years and also was Corporate / Digital the entire time so I’m pretty much an idiot, but i did look into this

I didn’t explain this well. What GE contributed to your pension is there regardless of whether you take the buyout or not.

If you take the buyout, you are forfeiting additional money. You have to look at the difference between GE contributions only and GE + your contributions, which is available on benefits, to decide.

Once again - taking your buyout does NOT negate the GE pension contribution.

@RC0a14T-1pk

following up on my last post with scenarios: you’re right, but the key thing most are missing is that GE contributions still count for your pension if you withdraw your contributions so look at the differnce on benefits; it doesn’t zero out

Of course the more of us withdraw the less money is in the fund but...

the buyout is for what you put in. What GE put in is either there or it isn’t whenever you hit retirement.

What you put in is either there or it isn’t when you hit retirement. But it is there now.

If both are still there when you hit retirement then you’re better off not taking the buyout.

If both are off in lala land when you retire you’re better off taking your contribution back now and rolling it over

if GE contributions are there when you retire and your contributions are gone, you’re better off taking the buyout now

if GE contributions are gone and yours are still growing and there, I have no f-ing idea

personally as exGE with 16 years and SPB for 10, I’m probably taking it out. It makes like $200/mth difference in my pension in 20 years, surely I can do better with $30k rolled over

I think the pension buyout would have to be between $200,000 and $300,000 in order to get $2,000 a month for life starting in 20 years. Anyone agree with this math? Anyone seeing this size pension buyout letters from GE?

Another article:

https://www.google.com/amp/s/www.forbes.com/sites/ashleaebeling/2012/11/26/what-to-do-if-your-pension-is-frozen-or-youre-offered-a-lump-sum/amp/

Get the answers here www.pbgc.gov

Pension Benefit Guaranty Corporation

ERISA Employee Retirement Income Security Act

Look at this article...says not to take lump sum. Besides, GE is not giving payouts of $200,000. Their payouts (around $15-25k only) are only the money you personally put in (they are not giving you the money they put in).

https://www.google.com/amp/amp.timeinc.net/time/money/3956340/pension-lump-sum

GE pensions are protected by ERISA. Does anyone know what that means in terms of how much (100% or some portion) we could expect even if GE goes bankrupt. I am looking for a real answer. Not just to take my money and run. I want a real analysis from someone who knows how this works. Thanks in advance.

The problem is if you wait there won't be any money so take it while you can

Take your $ any run!