The posts are generally whining and moaning.
I thought I would provide info so folks can plan better.
Topic of this week is around NRE and pension.
You don’t lose your pension. You lose benefits, especially medical. You get your pension, you get vested after 5 years. So you will get your pension. However discounting is different between retiree and terminee. Suggest you run Alight calculator between age 55 and 54.5 and you will know the difference.
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@ad Most people I talk to are worried about losing their unvested RSUs.
No one thinks they lose the pensiln. The complaints are that there is a huge reduction in value if you are terminated before 55. Also if you leave earlier you should take the lump sum as inflation will eat away at the pension value if you are no longer pushing up your top three years salary that is used for pension calculations.
Think there are two schools of thought:
- people thinking they get zero pension if they are terminated. As you noted, this is false. You’ll get what you’re owed up to your years of service.
- if terminated before you want to retire on your own terms, you do lose the significant increase on your pension in the delta of years of service (e.g., the difference your pension between age 45-58) which is significant. It’s essentially a way to keep you from getting your full pay out which can be millions. I think this is legitimate concern.