Thread regarding Intel Corp. layoffs

Key feature of the pension is that it accumulates at a low rate of interest (something like 3%, until payments start), and is not adjusted for inflation. So once payments start they are fixed. For most people the actual payment amount is a few hundred a month, which will be inflated-away after about 20 years of retirement.

With the govt seemingly set on using increased rates of inflation to devalue the debt, the pension is about the worst thing to hold.

Cash it out and put it (at least) in a short term bond fund, because even that will pay out at a higher rate than the pension. Do a IRA conversion and then make a decision on what to do.

If totally paranoid about inflation, then buy into precious metals or crypto funds if that makes you feel better.

If Idaho Mountainside Cabin paranoid, realize that ultimately the government would seize all retirement and other savings in a serious enough financial crises.

If a bit more reasonable, then invest in assets that can outpace inflation and obsess about something else.

You really should see a dermatologist about that rash.

As usual, a spam post produces a lot of spam replies.

I was hired in 2005, so I have the MPP. My currently monthly payment at 65 is $1.98 a month, the lump sum payout is $2164.29, but I cannot get the lump sum payout or minimum payment unless my 401k total value is less then 2k.

The Intel Min Pension plan is a joke. You only get money if you basically a sh-t investor and lost all your money to poor investment choices (such as investing in the Intel stock fund). If you just shoveled into the SP500, Fidelity Growth, or Fidelity Low Price Stock funds (or any fund that had NVidia in it)... you'll have way more money, and won't meet the minimum to get a pension payout.

If you take the monthly option, you can't do basic math. You get more, with fewer restrictions if you take the lump sum.

That minimum pension has some plan flaws Intel does not want to talk about? Like what happens to all of the money that was funded? Where does it go when everyone’s benefit goes to zero?

Also I heard that there is some legal issues going on with Intel over forcing employees to be invested in the Intel stock account for years as part of the Intel retiree account. Maybe someone knows more about this?

I don't believe OP has posted so much spam.

The MPP was a thing of the past. Intel stopped offering it a a benefit in 2011. They stopped increasing the benefit in 2019. The MPP is handled by Fidelity. If you don’t see an account for the MPP, then you are not in the program. For me it is not a huge amount, $900/month, but all income is welcome in retirement.

The MPP only pays out if an employee’s 401K savings are lower than the MPP amount. That’s highly unlikely for most people.

Minimum Pension Plan only pertains to people who were hired in certain periods (I think before 2013, but I’m not sure). It’s a really complicated formula to determine what your MPP was in the first place based on years employed and what grade you were then. In addition, it changes based on interest rates. Your MPP value goes down when interest rates go up (because the retirement fund is making more money I guess). My MPP fund went from about $84k to $40K over three years but most of that happened in one instant. I knew folks who had to retire in 2022 or lose $150k. They warned people it was going to happen in 2021 so they could plan but decided to hold back until later. When it triggered in 2022, they didn’t give any warning. There was only one person in Intel HR/Benefits that really understood it and he was retiring about the time I did (last year). For 85% of current workers, it probably doesn’t apply.

Ran all of this through AI and I am getting this, upvote / downvote depending on how useful u find it:

• Benefit: 401(k) Savings Plan

Intel's Offering: Intel provides a 401(k) plan where employees can contribute on a pre-tax or Roth basis. For 2024, the company offered a generous match of up to 7% of an employee's salary.

Impact of a Layoff: Minimal Loss. An employee's own contributions are always theirs to keep. Critically, sources indicate that Intel's 401(k) matching contributions vest immediately. This means any matching funds from the company belong to the employee and would not be forfeited in a layoff.

• Benefit: Restricted Stock Units (RSUs)

Intel's Offering: RSUs are a significant part of employee compensation at all levels. These are grants of company stock that vest over a set period, typically in quarterly installments over three to four years.

Impact of a Layoff: Significant Potential Loss. This is the area where employees are most financially impacted. Any RSUs that have not yet vested by the termination date are typically forfeited and returned to the company. While vested RSUs are considered owned shares and are kept by the employee, the loss of future, unvested shares can represent a substantial financial blow.

• Benefit: Employee Stock Purchase Plan (ESPP)

Intel's Offering: Twice a year, eligible employees have the opportunity to purchase Intel stock at a 15% discount through payroll deductions.

Impact of a Layoff: Depends on Timing. The handling of funds contributed to the ESPP would be governed by the plan's specific rules. If the layoff occurs before the stock purchase date, employees are typically refunded their contributions for that offering period. They would lose the opportunity to buy stock at the discounted price.