Merck Pension

if you are under 50, get out while you still have a chance to work somewhere else!

 

merck will dump pension into insurance company like verizon did. It will no longer be covered by pension guarantee corp from us govt.

 

Done. Thanks!

 

Did Verizon shift pension into insurance for new retirees as of a certain date, or was it retroactive to current retirees?

 

Fuzzy math

 

Never never never take the annuity! Lump sum and run. Took my 2 plus million and have never looked back. Living the good life and I manage the portfolio.

 

My lump sum was not that high, only 1.75 mil. but adding in 401k gave me $2.75 mil. Hope to squeak by with this and my other investments. All my houses are paid for with my biggest expense being my Country Club membership fee. Be Well all.

 

Vinwire

 

You will live very well. Enjoy you worked and earned the good life

 

Similar situation here. The biggest challenge is managing the tax liability. What state do you live in?

 

You roll over the pension into a IRA and manage the annual withdrawals to minimize tax bracket levels during specific years.

 

My lump was $4 million but lost it at the casino.

 

Coming for you soon

 

State does not matter, roll everything into IRA. You have the option on your 401k to take a (one time) payment on a portion of total before you transfer. I left in September and they did not send me my pension and 401k until January of the following year so I took $50,000 out and paid regular taxes on that amount and since that was all the income I had for 2014. Rate was not as bad as it would have been my last working year. Will not pay any taxes on the rest till I start to draw it out at 59 and1/2. If I don't need the money, I'll buy tax free muni bonds each year, but make sure you have a good CFP and CPA.
Don't get me wrong with my wife's income and my rental investments, I pay a lot more taxes than I thought I would and will be much higher if Hillary gets elected. The best thing I did was to stash away $500,000 in a regular savings account that taxes were already paid on and live off that till I turn 60. Hang in there Merckies, I have not had a dream about unplanned field visit in 2 years

 

State does not matter, roll everything into IRA. You have the option on your 401k to take a (one time) payment on a portion of total before you transfer. I left in September and they did not send me my pension and 401k until January of the following year so I took $50,000 out and paid regular taxes on that amount and since that was all the income I had for 2014. Rate was not as bad as it would have been my last working year. Will not pay any taxes on the rest till I start to draw it out at 59 and1/2. If I don't need the money, I'll buy tax free muni bonds each year, but make sure you have a good CFP and CPA.
Don't get me wrong with my wife's income and my rental investments, I pay a lot more taxes than I thought I would and will be much higher if Hillary gets elected. The best thing I did was to stash away $500,000 in a regular savings account that taxes were already paid on and live off that till I turn 60. Hang in there Merckies, I have not had a dream about unplanned field visit in 2 years

 

Lump sum will be greatly reduced over the next year due to interest rate increases. Most will be forced into annuity. Don't count on this pension if you need to work past 2019.

 

Better get while the gettin is good.

 

How much of a reduction will occur? Lets say if your lump sum is 1,000,000 in 2018 what is that same worker's amount in 2020? Will it be that much different to force you to leave?

 

So former DCOs boast about their retirement savings and country clubbing on this site?
Nothing better to do in your dotage?

Either that, or this is a pile of hooey. A lump sum that high never went to a field rep, no matter how long they worked for Merck.