Merck Pension

Discussion in 'Merck' started by anonymous, Sep 18, 2015 at 4:12 PM.

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  1. anonymous

    anonymous Guest

    A mil??? Hey, people walk away with 100 thou or less!
    Pittance is more the word!

    Who the heck is You?
     

  2. anonymous

    anonymous Guest

    Get a job Troll.
     
  3. anonymous

    anonymous Guest

    Another former DCO on this site? No way that a field rep was offered $2 million as a lump sum.
    But then again, CP brings out the delusions of the mighty mice at Merck.
     
  4. anonymous

    anonymous Guest

    Since Merck screwed us and indexed the lump sum to interest rates that update every quarter, it does not look good for lump sum people. The problem is the relationship in one of an inverse nature. As rates go up, lump goes down. The rationale is that when rates go up, it will be cheaper for merck to pay out your annuity.

    To answer simply, if I were projecting a $1,000,000 lump sum in today's low interest environment, you can be sure you will be giving up at least 25-30% (maybe more; depending upon how much interest rates rise by the time 2018 rolls around). You will be better off with the annuity at that point.
     
  5. anonymous

    anonymous Guest

    I retired in early 2011. I always intended to take the LS as even if I lived to 90 the annuity would pay out more in total, but if I died early or if MRK underfunded the pension or abandoned it over time, I/ my heirs would get less or nothing. I religiously accessed the Merck pension calculator website quarterly and as interest rates decreased in the 2nd qtr 2011 I saw my LS grow. In 2011 the interest rates were to increase in the 2nd qtr to the point where my LS decrease would wipe out my entire yr's salary. Loved the job but worked for an idiot, so the choice was clear. I retired. In the next quarter the interest rates increased again, confirming I made the right decision. Since retiring I have had no access to the retirement pension calculator web site. With the above, can you be kind enough to answer the following:
    Can you share the latest interest rates posted on your retirement calculator printout?... it used to be posted as 3 segments... for example in the 1st qtr of 2011 interest rates were:
    1st segment = 2.13%
    2nd segment = 4.57%
    3rd Segment = 5.60%

    I used to model the Pension calculator each qtr by plugging in different ages to retire and different expected salary increases (best to keep salary increases constant if you are close to retirement). That would identify the retirement age with the highest LS payout at the prevailing interest rates. Yes the LS and annuity changes as interest rates change and the reason if you are close to retirement to access the retirement calculator immediatly after the the interest rates are posted.
     
  6. anonymous

    anonymous Guest

    A BIG question is..... can those who take annuity face the chance of the little monthly amount we dropping even lower once you're activated with the moola stream?
     
  7. anonymous

    anonymous Guest

    Here you go. These are the current and latest rates per segment. These rates are for the first quarter 2016.

    1 1.66%
    2 4.06%
    3 5.03%

    In 2015 the rates were lowest during the 3rd quarter. They since ticked up a little. The thing is it is very difficult to predict changes in interest rates but it seems you made the right move. I believe even if you are retired you still have access to the pension site. You can't pension model once your pension has been executed but you can follow the rates per quarter.

    Merck runs a three month average of the individual rates but the IRS has a form that will update the monthly rates each month. The IRS form is IRS 417. Here is the link. You can see the interest rate trends in the IRS 417 monthly updates.

    https://www.irs.gov/Retirement-Plans/Minimum-Present-Value-Segment-Rates
     
  8. anonymous

    anonymous Guest


    Incredible! And they are pushing out people who have a pension worth a few bags of groceries. Yes-sir-ee get your connections in check to keep the saving going.
     
  9. anonymous

    anonymous Guest

     
  10. anonymous

    anonymous Guest

    Thank you so much... your info is very helpful!
     
  11. anonymous

    anonymous Guest

     
  12. anonymous

    anonymous Guest

    You are right about interest rates for the 3 segments increasing, results in lower lump sum payments. Not sure about being cheaper for Merck to pay out in annuity, perhaps. It was explained to me during some of the retirement teleconferences this way. If your desired income at retirement is $90,000 per year, and interests rates are low, you would need a higher lump sum to achieve this income. If interest rates are higher, you would need less in lump sum to reach the same $90,000 in income. After watching what has happened with MRK the past few years, I felt more comfortable taking the lump sum and not worrying about MRK staying solvent. Keep in mind that if things go bad and the pension fund goes insolvent and the U.S. government insurance has to kick in the max they will cover is around $ 50,000 per year. That is what happened to many pilots who retired from United Airlines. They took annuities of $120,000 but when UA declared bankruptcy, their pension fell into the government's federal pension insurance program and their annual payments maxed out at around $55,00 per year.
    Be Well
     
  13. anonymous

    anonymous Guest

    The only way the government pays $55,000 from the pension guaranty corp is if the person retired 65 or later. If you retired prior to 65, and, Merck stops paying the annuity, the max is $28000.
     
  14. anonymous

    anonymous Guest

    this is a really good move, unless you are a greedmonger...TAKE THE LUMP SUM!!! Do not wait around 7-10 or however many years you need to access your money...Merck is cash rich yes, but they are so corrupt and mismanaged, do not give them the opportunity to screw you again...

    It is not worth the extra money to give Merck a chance to become insolvent, or come up with new ways to screw their retirees...They are not to be trusted!!!

    Take the lump sum and invest it wisely...
     
  15. anonymous

    anonymous Guest

    Regarding retiree medical insurance. How much are you paying per person per month for premiums?
     
  16. anonymous

    anonymous Guest


    ....and if your pension is only a pittance? Would you lose your pittance?

    Reading this you wonder if you're covered up to 55K. There are people here who have nothing close to a whopping 55K...(they should be so lucky)

    Think in terms of a few hundred to maybe a 1K a month pension...yep, that is the glory reward of many....get real.
     
  17. anonymous

    anonymous Guest

    $385.00 per month
     
  18. anonymous

    anonymous Guest

    $158 per month for two thru Merck interactive plam
     
  19. anonymous

    anonymous Guest

    401.00 per person pre medicare. Any ideas why there is a difference?
     
  20. anonymous

    anonymous Guest

    Dont its golden compared to Obamacare..