Real Early lump sum offers

"I got a rock"

 

I am leaning to take a lump sum. I'm pessimistic about the future of our industry and America. Just look back ten years ago. Did your finance get better? Is America stronger than 10 years ago. In ten years, any thing can happen: dollar lose its reserve currency status, another war should Bush III elected....My feeling: things is going to get worse. Take your money and run!

 

Totally agree; invest in growth and relax.

 

Just an update - after meeting with my financial planner today. With the interest rates where they are right now, we concluded that converting the lump sum to an annuity with a 500K guaranteed benefit in the event I were to die earlier than expected would provide a 'pension' payment 25 - 30 % lower than Pfizer's standard pension plan. The only reason I was considering taking the lump sum was that it could become part of my estate if I died prematurely. If you have no other savings to pass along to your heirs that may make sense. For me however, its best stay with Pfizer. The company is solid and the pension fund is well funded. Just a side note - if you have a good financial planner he'll help ensure you evaluate your options objectively. Even though he would have made $$ if I rolled it over to his firm, he still recommended staying with Pfizer and continuing to grow my resources outside of the plan systematically.

 

Nice to hear you got an honest opinion.. a $500K annuity sales commission is a chunk of change depending on how the finance rep gets paid on it..(think $20K)....plenty of folks just know they can beat the market or have a 'guy' or know a guy that is just the next Warren Buffet (if you have to ask who's that? then keep your money with the company plan)...

 

Could someone please post the number for HR/Fidelity or whomever we call regarding pension plans?

I'm severed Wyeth from 2009 one year away from 55 and want to know what my options are. I'm hearing WL (Warner Lambert) people are being allowed to take their pensions as a lump sum prior to age 55, and I'm wondering if the same option is available to old Wyeth employees. The longer the money sits with Pfizer, the less comfortable I am.

I left the country in 2010, so I'm long off the mailing list to get notice that way. Not surprisingly, every website and number in my separation documents is defunct.

Thank you.

 

ball

 

Update from poster #107

After some searching, I did reach the HR Source Center person to help me with my pension question. In case any legacy Wyeth folks are following this thread and didn't receive notice, you may be eligible for an early buy out (I was). Call 1-866-476-8723 and go through the phone tree to get a live rep. Mine was extremely helpful and not an outsourced CS person. The deadline is Friday, August 21 to accept and complete the paperwork.

 

I am a former Pfizer employee of 5 years, but contracted for 4 years (exclusively) with Pfizer prior to my hiring.

While at Pfizer, I recall being told by a colleague about a policy in which colleagues can be bridged for purposes of vesting and pension eligibility if they were contractors prior to hire. I also recall submitting a form and being granted those additional years of service.

I am eligible for the pension payout, but Fidelity (Pfizer) still has my start date as my hire date meaning my payout is essentially halved.

Does anyone know if this bridging for contractor service also gives credit for pension years?

I believe Pfizer and other big Pharma (companies?) had to do this as there was a class action in which these companies were accused of using contractors as employees. For this reason, we are also not able to have named contractors in SOWs and people over 12 months on contract.

 

I have called multiple times to find out the years of service used to calculate my number, and get no response. Deos anyone know if the "grow-in" counts toward the calculation?

 

Years of service has nothing to do with the calculations. It is based solely on the value of your current pension annuity when converted to a lump sum using NPV. Of course, the number of years you have before retirement age has a big impact on the NPV calculation. The younger you are, the lower the lump sum will be for the same 'pension value'. That's because you have a longer investment horizon to grow the lump sum.

 

A pharma rep needs to work many years (MANY) to accrue a significant pension period. If a buyout lump sump offer is extended the amount is based on that value due to years worked. A person with 10, 20 etc. is considered "minimal" in the entire scope of value. People are misled when they think working for a pharma company for their entire life will be substantial; it is not. Check with your local federal employee (and state for many) and when you learn they receive 80% of their working salary etc. you will see the unequal light.

 

You're correct that the Pfizer pension estimate on HR Connect is directly related to salary and number of years worked. If you read your pension documents, it actually shows the formula. That's absolutely true.

However, when you convert a future income stream to an annuity, the NPV formula doesn't have anything to do with years of service. For example, two people with the exact same 'pension' can have a very different lump sum values based on NPV. An older employee with a pension of 3000/month will have a higher Net Present Value lump sum payment than a younger employee with exactly the same 3000/month pension estimate because the younger person has a longer investment horizon before reaching age 65. Its simple math.

 

I found this thread by accident today. I never received anything from Pfizer regarding this buyout. I'm a former Wyeth employee. I guess I'm screwed and I didn't even know about it. Just my luck!!!

 

if you are single, stay with the annuity rather than the lump sum and you die, Pfizer keeps it all! If you have a high-risk medical condition, or are older and single, take the offer.

 

When do these lumps get paid out again?

 

So glad I took it, now that the merger is happening with Allergan it makes total sense. It gets paid out in mid December