Thread regarding Intel Corp. layoffs

You are wrong @xvj. You do not have to be 65 as you state in order to receive the pension. You have to be ELIGIBLE to RETIRE under ANY of their rules. You can receive it being as young as 55 (Rule of 55 = at least 55 yrs old + 15 years of service). I know this for a fact because I retired early under the Rule of 55 and I received my pension several years ago and I'm still nowhere near 65 yrs old.

It's all about eligibility, not age.

The rule of 75 doesn't affect your pension and you will get the benefit if your vested when you stop working. The program is capped for all employees starting 1/1/2020. Your future years of service and your future compensation will not be factored in going forward.

The min pension benefit will be eliminated next year for grade 6 and below. BS is cutting benefits lower paid long term employees now. Most employees did not even notice since it was just mentioned one time and not communicated very well and at the same time SPP went up to 10%.

Here's what happened in my case:

I took the ERP in 2016 with 17 years and age 55. I qualified for ERP by the 55 plus 15 rule.

Using the calculator provided (in the Fidelity website, I think) it said I would get somewhere between $100 and $200 a month from the minimum pension plan, depending on when I started taking it. I also figured out that the amount received was inversely proportional to market interest rates. So I waited a year for interest rates to dip (and my income to be lower to reduce taxes) and took a lump sum of about $23000, which was a much better option than waiting a decade for $200 a month.

You are eligible even if you don't meet retirement rules. Here is what the Plan documents say:

When you leave Intel, the final balance of Intel’s contributions (plus earnings) in your Retirement Contribution Plan account (adjusted, if applicable, for outstanding loans and prior withdrawals) will be converted into a lifetime annuity value for calculation purposes.

Your age and retirement eligibility are irrelevant. What matters is whether you are vested. If fully vested, it is yours!!! HOWEVER big tax consequences if you take the lump sum and spend it. Better option is to take the lump sum and roll over fully into a qualified IRA with a custodian you trust/know. Yes, you can leave with Fidelity and begin drawing when you reach retirement age BUT you can probably earn better return if you take control of it and roll over into an IRA with a custodian who can take a bit more risk and earn you a better return.

The pension at Intel is usually only valuable if you have not worked there long enough to get your 401K big enough and get to retirement age.

The best thing to do IMHO is to max your contribution to your 401K plan, keep your technical skills current, and look for a better employer/ assignment. That is unless you are in one of the privileged minority groups.

The only person who is confused is you.. The four bullets in my previous post are the only benefits that rule of 75 gives you. The day you became fully vested, you have earned a minimum pension benefit. It would be very small if didn't have many years... You can find it online at fidelity.

Check your tcomp handbook.. Chapter 18, section 3....read it... Learn it.

You vest 100% in the RPC and the MPB after 7 years of service (if hired before 12/31/07)... That is right out of the tcomp handbook...

So that's the bottom line.

1jsx, I think you are confusing the Intel retirement contribution plan and the Intel minimum pension plan. They are completely different. The intel retirement contribution becomes fully vested in 7 years. At that point, everything in the fund is yours when you leave Intel.

The minimum pension is another fund in addition to the retirement contribution. You earn it if you meet the rule of 75, age 55 + 15 years of service. or 65 years of age. You can receive a monthly benefit at age 65 or a smaller benefit starting at an earlier age. You can also cash it out as a lump sum and roll it into an IRA. I believe that Intel stopped allowing new hires into the plan a few years ago, but all of the old-timers were grandfathered in.

In my case, with 24 years of service, my Intel retirement contribution had a value of around 1.5 years salary and my minimum pension plan has a cash out value of an additional year of my final salary. If I take it as a monthly payment, it will be equal to about 2/3 as much as my social security will be.

1jsx: I don't see where anyone said you had to have hit Rule of 75? As long as you have a vested balance it is yours. And the online tool gives you a monthly payout based on age 65 though you can adjust that. Call Fidelity for details and process. It was pretty seamless.

does anybody have a Formula for how Lump Sum min Pension plan amount is calculated. I know they estimate it for you, but Trust and Verify works for me. When I tried to use the plan docs to come up with a formula, I could never get the same number as Intel/Fidelity.

The idiot who said that you don't get minimum pension unless you are rule of 75 is wrong.

Rule of 75 gets you :

-option to purchase Intel retiree medical plan

-money put into SERMA

-Stock acceleration

-pro rated retirement contribution, QBP, APB

One more time.... If you ever vested into the Intel Minimum Pension Plan, you don't have to hit rule of 75.

The info posted that says you do is dead wrong.

https://www.thelayoff.com/t/HJpo7gZ

You have to be 65 to collect the pension annuity. The amount varies depending on your grade (Intel eliminated pension contributions for grade 7 and above a few years ago), how many years you received a pension contribution, and whether your regular RC is high enough. Hence the more RC you have the less pension contribution you will have. It's an inverse link. If you do a google search for layoff.com/Intel and pension, you'll find a long and in depth convo on that topic that came up during the original ACT.

@qwv - I have 21 years, age 52 and when I asked what my minimum pension would be at age 65 and they sent me the docs that said I would get $47 per month. WTF? Does this even seem remotely possible?

thanks

"*Our records indicate that you separated from employment on July 2015.

This is your benefit assuming you commenced your benefit at age 65 years 0 months. This was calculated on January 26, 2017. "

19 years of service, didn't meet any of the rules people are listing, contacted Intel Benefits....401K.COM estimate is what you are still eligible for. Lot of misleading crap here. Contact Intel Benefits. They will more accurately inform you of your minimum pension status.

When Intel stopped the "Minimum Pension" in 2013 everyone grade 7 and above was vested.

Thanks for all the replies. Even though conflicting. I was fairly certain that you won't get the minimum pension if you don't hit on if the rules and a couple of people confirmed.

If you are not meeting one of the three criteria: rule of 75; age 55 + 15 years of services or 65 years old you get nothing from minimum pension plan. The one that are vested is probably your In tel retirement plan. I am 63 and worked 17 years, I got both plans. I moved both funds to an IRA. I knew one guy who was laid off in 2015 who was 65 years old and 10 years service took monthly pension of $300. If you are closed to meet one of the three criteria I suggest you stay put for now. I got about $210,000 from minimum pension on top of the retirement plan contributed by Intel. On other people that give you stupid responses, it is pretty low to make fun of your questions when you are asking for help in clarifying your situation. Not sure how They were hired by Intel in the first place.

Ignore the trolls. If you are vested, take it out and put it into a new IRA with your personal investment account/advisor. Then you can do with it whatever you want.

if leave == retired probably o.k. else puff gone...

http://www.vox.com/policy-and-politics/2017/1/25/14390106/leaked-drafts-trump-immigrants-executive-order

Rule of 75 doesn't affect your pension. If you are vested, it's yours.