Does anyone have any information on the pension buyout rumors?
22 replies (most recent on top)
Not true. Vested means you own it. I think there are variations in pensions from Allied/Signal emps and Honeywell emps. The pension is funded to a 3rd party. It is not Honeywells once there.
The person who took the VRIF in September and retiring in April is absolutely correct. Being vested only means you quality for retirement under the terms of your plan. Since this is wholly funded Honeywell owns it and can take it away just like any other benefit. I have been here 36 years but won't be 55 until June and I'm scared to death
Look up the definition of "Vested". Honeywell funds the pension to a 3rd party too.
I took a VRIF in September - A decision driven by the rumor of a possible lump sum pension buy out. I had over 30 years in and a lump sum would not come close to compensating me for the pension annuity payments. If you think because you are vested they can't take your money you are incorrect. I sought legal advise on this matter prior to submitting my VRIF paperwork. The pension program is 100% funded by Honeywell and they can do whatever they want with this program. This is not "your money". After you receive your first pension payment then you are considered retired and protected by the federal government pension insurance program. Until then you are on your own. Now, having said that I don't believe that there are any immediate changes coming. I submitted my paperwork to have my pension begin in April (when my severance benefits end) and it was accepted just this week with a letter stating the amount and 4/1 start date. I feel pretty safe with this letter in hand, but your pension is a pretty big pot of money to play with. Make wise decisions!!
As a Torrance long time employee my pension is "Vested". It belongs to me is independently managed and not subject to a forced buyout. Anybody who goes to HR direct and sees that they are vested is not subject to any BS being discussed here. If a lump sum was sufficient I would consider it.
I doubt HON will be generous but found this as generic advice
http://www.investopedia.com/articles/financial-advisors/090915/should-you-accept-early-retirement-offer.asp
I agree with where did the 6 yrs come from. Not sure about that . It doesn't make sense when you look at the numbers even if spouse numbers aren't figured in.
Guess we'll edit and see. I gave my paperwork in as it's 3 months to get it back.
But why 6 years? Why not 5 or 10 or some.other number? Assuming this is the bare minimum because honeywell would never offer employees anything they didnt have to, but I cant find any justification for 6 years on any independent sites. That just seems very low when the plan still be operating for current retirees.
Get real. The lump sum is just that a one time lump sum payout. Once paid out you're done and paid off.
This isn't in affect yet still rumor.
6 years does pay you your monthly payout for six years in a lump sum. That's it.
Here's a guess. If you will leave by January 31 we will pay you what your pension would be for 6 years starting in February. Then at retirement age you can start your retirement payments
Depending on what your annual pension amount is, this could pay more than the standard severance payment Example if your are 59 and earning 100k. Perhaps your pension at 65 pays $32k a year. 6 years of $32k is way more than severance. Then at 65 you can start pension of $32k
If that were the offer I bet a lot of people within a few years of retirement would take it
When you say 6 yrs lump sum, is that 6 yrs of your annual income? If not, what formula?
Who has determined a 6 year buyout? Wouldn't a buyout be determinted by government regulations? 6 years is way too low when monthly payments are based on mortility tables saying my expected lifespan is 81 and I'm 54 now. I'm surprised this wouldn't raise government inquiry. I would think that's the last thing Honeywell would want,
No the rumor is 6 years of pension payments as a buyout. I have 36 years in and this means we get scewed
I'm a Torrance employee 40 years of service. My pension is vested. There is not buyout option in the pension estimator. Is this something new coming. Payout 6 years of salary in lieu of monthly payments ???
Maybe if you don't retire now your only options will be lump sum starting this year
I'm not following what 6 years would have to do with anything. Unless all employees with 6 years or less can only get a lump sum. And that might be the rule anyway. If you don't have enough years of service they will only give you a lump sum
Heard a lot of people on the shop floors in phx/dv/Tempe looking for new jobs
Go to the Honeywell Retirement website. It can run all kinds of scenarios for you comparing lump sum as of today or any future date, versus monthly payment to you only; you and then 50% to your partner when you die; or you and then 100% to your surviving partner. It tells you exactly what rate of return is assumed in calculating the lump sums, etc.
I retired last year to my schedule, not H's. After 15 years at Aero, the choice was about $700 a month for the 100% survivor (wife is much younger) versus about $110,000. As I said in other postings, the pension is taxable and so is the lump sum unless you roll it into an IRA. I don't know how someone got "6 years" except in the very simplistic way of dividing a lump sum by the yearly pension payout. That sounds like way too little time.
I wonder if the other 13 or 13 pension plans are included or if it is just AERO. Hope we hear by end of January. Bonus funds get loaded this weekend. If those are low a lot of Band 4s will start to exit early
The leadersh!t team is a bunch of a$$holez
Where does the 6 year lump sum come from?
The Rumor around PHX is if you don't retire, a 6yrs lump sum buyoff, not herd of when