What the he-l is rule 70? I keep hearing it mentioned and I feel like an id--t for not knowing what it is. Can somebody enlighten me, please?
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Does anyone know if Canada has the equivalent of the '70 point' plan if laid off?
It isn't enough to have 70 points. You must have both at least 20 years of service AND be at least 50 years old. 55 and 18 years of service is a termination or quitting and does not qualify for retirement benefits even if it is 73 points. If you have both at least 19 years of service and or are at least 49, they allow a special leave of absence to bridge you to get to early retirement.
Basically, they can cut you out of your retirement life insurance even if you paid in 15 years before hand (being 100% paid in) and the years of medical insurance.
- Get the money first, then let the buyers worry about collecting the merchandise
The main benefit of the APF is that it saves Shell money.
BUT, if you leave Shell and take the APF as a lump sum and put it directly in an IRA and let it grow at ~10% /year in a index or stock of your choice and don't touch it for >15 years it will on average yield more than the 80pt formula. AND if you don't spend it down you can leave that to your kids. If you follow Bill Bengen's 4% rule you're very unlikely to run out of money and you can take inflation adjusted payments. The 80pt formula disappears when you pass and does not adjust to inflation.
If you are retiring and planning to use the funds from the APF from the annuity or lump sum in less than 10 years from leaving Shell , that value is almost always less than the 80 pt formula by a large margin.
The APF benefits folks who leave Shell early to mid career but it costs you if you are leaving at the end of your career.
What is the most benefit from APF compared to the 80pt ?
Is it just the medical till you hit 65? Or any multiplier which equals more compensation?
80 PP pension is not negligible if you leave before 80 - the benefit is certainly better than APF. But there is a lot of value in hitting 80 points and having immediate eligibility (i.e. early) eligibility before age 65.
Ah yes, the legacy 80 Point Pension with leniency for an early redundancy, health issue, etc. at age 50+/20+ years service, both with continued life-time medical. A retention enticement in the days when one company goal was to reward career longevity and commitment. What a different world in which we now find ourselves..
The legacy retirement plan is called the 80 point plan because your pension is negligible until your age and years of service adds up to at least 80. As a way to entice people to leave that 80 point hurdle is reduced to seventy during layoffs. So your pension isn’t penalized as much if you are at least 50 and have 20 years. There’s is still a 5% penalty for every year under 60 though.
Rule 70 states that "Those employees that dont know rule 1-69 will be let go immediately."