Am hearing that the announcement about the change in the retirement program may be coming within the next two weeks and that instead of giving you up to March to decide, it will be 24hrs. from the announcement. also heard that Honeywell is expecting so many takers that they believe it will take them 30days to process all of the request.
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Some HON plans have lump sum as an option now. In general it is a poor choice as you cannot turn that amount into a similar income stream without taking huge investment risk. So perhaps what the are going to do is if you don't immediately retire, going forward your only option will be lump sum. Which would be a bad choice for the employees but save huge $$$$ for HON
Google's motto: Don't be evil
Honeywells motto: Don't be Google
Would be nice if they would offer to add years of service or years to your age in pension calc. Other big firms have done that per Google search
Really too many options to consider, need to wait until we see it in Legal-eez.
if you are fully vested, not so sure they can do that in all states. Anti trust laws prevent this from happening. The medical rip-off they did was not protected. it might not be a bad deal if you can take a cash out without retiring and then move to an IRA or invest for the next 5 to 7 years... maybe buy a rental unit. Don't forget to buy a life insurance policy so your family is taken care of.
I agree but it will be short time line to accept allied plan or the option goes away. So if you have 5 to 7 years to go, you'll miss out and forced to take lump sum.
Remember when they told us the retirement medical was going to stop but if you retire before years end you'll retain the medical coverage. Many bit on thet then corporate renigged on the offer and discontinued medical for all retirees.
I think only the change would be the cash out option, they may get some takers that would forfeit their severance pkg., but not the folks with the old Allied-Signal pension fund. I will get $2,800 monthly plus the same amount from S/S and my wife's benefits.. No way baby..... i'm not going to bite.
Your pension is the next thing to change. I hope I'm wrong but that's a HUUUUGE money saver year over year.
Most of the folks that could VRIF and retire have done it. Large amount of folks with 5-7 years left... Pretty sure they will manage the attrition tactics to screw us over.
59 1/2 I just did it. I transferred all eligible funds to my broker
If you are over a certain age (not sure if it is 55 or 59 1/2) and have been with the company for 10 years, you can transfer you funds out of your Honeywell Savings and Ownership Plan to your own investment broker and IRA account. Take the cash out of Honeywell and tell your broker that you don't want him or her to invest it in any Honeywell stock. You can do this even if you are still working at the company. Your broker can set it up for you but you do have to call the Honeywell Help line for the plan.
I doubt that the decision window would be 24 hours. However, if the decision must be made prior to the end of February, any employees that are MIP eligible (if there is any MIP this year) could be pushed out prior to MIP payout, saving the company money. With the hard line being taken this month on any remaining WFH employees, there could be a significant exit with no severance payout. Lots of money to save.
If "everyone accepts" for this question we'll presume that's the case but unlikely. One on this topic has said he wasn't ready but what choice does he have.
What they gain is millions in pension payout over the generations that are eligible.
In my case alone I'd stand to loose about 700k if I live to 85 years of age not counting my wife's eligibility at a 50% rate after my death.
The lump some based on rumor of 6 years is 300k. The math is clear but I agree, HUGE risk to let the knowledge go so easily,
Lets assume it happens and the ultimatum is given. If everyone who is eligible for the monthly annuity retires and accepts it, what has the company gained other than losing all the experienced people and still having to pay monthly pensions?
I hope you are tight ( never happen) but I said the same thing about loosing vacation. I know unlimited now, let's see what we get. I'm hearing 3 weeks tops
Never say never.
Never happen
That's just it, it's not forced as you have an option stay or leave your choice.
I think the managers had a say in accepting VRIF or not, this time they don't as it's a corporate change in policy. That's why I can't see this happening as it will cripple some departments but then again, when has corporate ever cared about the working level?
If you volunteered to be RIF'd and were not chosen, then given the forced choice of early retirement with no severance or UI, I would def be talking to a lawyer.
Just a thought and consultations are free.
It could be that's what they're counting on. Too many people can't do it but the cost of giving away several years plus spouse benifit, I can't see how any one could take lump sum at retirement.
I did the math and no way could I stay.
You are correct. All the volunteers that was told NO, now they can leave even without the 26 weeks who cares when you look at the bigger picture.
So of course no one would stick around for a 6 year lump sum payment, what a joke. But if you do take FORCED early retirement, think about it. Essentially you are quitting. So NO severance. NO unemployment. NO time to find another job. And for most of us, the pension is not nearly enough to live on.
Good job, Honeywell, at really screwing over your long time loyal employees.
I am one. 20 years here, 7 years from full retirement. I have saved well but with a plan of retiring at 65, not 58. But I def won't take a buyout.
And how can they possibly lose so many experienced people at once?
I hope HR is open for all 24 hours as there will be a long line and I'm in it. 56 yo, 32 years of service with Garrett, allied-signal and now Hon.
I hope they do it! Talk about hurting themselves 😋
I'm not buying any of that.
24 hours is not reasonable. I think they have to give you more time but either way, lump sum versus today's plan...... I'm gone!
Plus, you're correct, so many takers it would crippled Hon IMO