Any bull shizzel rumors out there about changes to the pension?
7 replies (most recent on top)
Honeywell hired teams of lawyers and got the Retiree medical insurance taken from the retirees, spouses and eligible dependents in the namesake to buy other companies to dissect and grow. This happened in June 2018 in USA.
Honeywell hired teams of lawyers and got the Retiree medical insurance taken from the retirees, spouses and eligible dependents in the namesake to buy other companies to dissect and grow.
Obviously different countries have different laws. New hires in the USA have not been offered defined benefit, aka pension, for several years now. Employees with pension plans had the plan modified several years ago that the benefit amount calculator was frozen at your current salary and would not automatically track pay increases. US law controls payout dates in general and prevents forced lump sum payout but Honeywell could offers something sweeter than the current lump sum option, but it gets complicated here if you have a spouse/partner who would have to agree on anything that cuts them off from less than a 50% survivorship monthly benefit. Let's wait to see what is offered, if anything, before speculating too much more on this.
UK plans are converting from defined benefit to defined contribution effective June 30. They have a while to decide. The future benefits are significantly less than the old plan. Basically those who were considering retiring within the next 3 years will want/need to leave by June 30 or delay retirement until full deferred retirement age which is either 65 or 67 instead of 60 or 63
I bet this is what they plan to do in the USA either this summer or end of year
I hear a buy out of 6 times salary in a lump sum distribution.
Since we are pressuring California employees to spend their vacation banks (I mean pleading since they don't have to do it) to improve Operating Income, the most logical thing for HON to do is completely freeze all pensions. I doubt there will be any incentives to retire early and start pensions. There is never an upside for employees only for HON
Google Honeywell UK Pension changes
They are being told the early retirement penalty will increase from 4-5% per year you are under age to perhaps 7-8% per year. If they want early retirement at the lower penalty they have to leave and file for pension to start in a few months