Thread regarding Intel Corp. layoffs

For SERP+, I am worried too given the level of debt we are taking. I remember Nortel didn't want to pay deferred compensation after they filed for bankruptcy but had to settle with a lawsuit from their ex-employees. If one's payout is over 10 years, we have to pray BK does not screw it up too bad.

https://www.law360.com/articles/224695/employees-challenge-nortel-s-38m-deferred-pay-grab

@O1r3zdJ-1poi the SERP+ does indeed have the dirty secret, with debt where it is, no longer something one can bank on anymore!

On a related topic, if you are eligible for SERP+ it is a good time to be aware that these funds are not backed by anything other than intel. If intel, heaven help us, were to go bankrupt the SERP+ money is treated as unsecured debt.

In the old days this wasn't much of a worry. Now days I worry about it all the time because i opted for ten year payout (which is irrevocable). Dont't trust me, go read the plan docs and make sure you understand the risks.

1swt- you get the intel contribution always (after 7 years aka fully vested.). But if that balance isn't high enough, then the minimum pension is supposed to kick in. In theory, assume the formula says you should have $3k a month in income, but your Intel acct only provides $2k. Then the minimum pension will provide the additional $1k. But since they have capped the years of service, the longer you work (and get annual contributions) the less chance that you'll need the minimum pension.

As a side note, I know someone who retired around 2013 and the minimum pension was paying him an additional $2k a month.

oops - typo on my last post. If you were hired in 1997, by 2015 you would have built up 18 years of contributions.

They stopped accurring years of service in 2015. I disagree with @ymo - you do receive any residual balance if you leave Intel before retiring. So if you left in 1997, and they stopped accruing years of service in 2015 (a fact) you have ~18 years of built-up balance. They quit enrolling new employees in 2011.

Looking at my numbers, it looks like its been ~2.0 - 2.5% of my base pay over the years.

The funny math is when you RETIRE from Intel they look at the minimum pension and the Profit sharing plan and pick whichever is greater. Almost an incentive to NOT retire with Intel.

The problem is that your years of service have stopped accruing. Basically whatever it was in 2013 or so when they made this change is what it is stuck at. Stopping your 401k contributions probably won't change anything. It's the combo of your 401k and Intel contribution (I think, but some have said it's just the intel part), and if that value is greater than what the formula says (based on your years of service) then you get nothing. If you're close to retirement you might get something, but for those decades away, you'll get nothing. S---s.

Freezing minimum pension was very a very clever move by BK. I never saw it explained quite as clearly from internal communications.

If your still eligible stop contributing to the Intel 401k. Open a separate Roth at a broker and contribute to that. Your diluting your pension benefit by contributing to the Intel retirement plan.

You want the minimum pension back, be a grade 6 or below. Problem solved.