Real Early lump sum offers

What is your option #5 number? If you don't know what this is, you are a troll.

 

I think you are calling BS on post #48 and #56 (e.g. the 1.4mil lump author). The person who responded in post #52 does not believe the original poster (#48) either.

Your numbers look reasonable (54, $6700, lump = 615K).

Lots of trolls on this thread, as usual...

 

How were informed? My USPS mail??? I see nothing on the Fidelity website which notes my Pfizer retirement. I have been at the same address for over 10 years. Thanks in advance for your response.

 

It appears that my offer is less than others with similar experience?? PHR/IHR/Specialty Rep

Current age: 54
17+ years with Pfizer '89-'07
Option 1 $230K (IRA rollover)
Option 3 $184K lump sum distribution
Option 5 $2,500/month at age 65

Comments welcomed!

 

I worked for Pfizer/Warner Lambert for 10 years. 3 years as a rep, 4 as a specialty rep, 3 years as DM. I'm 45, not married. I would have thought that my lump sum would have been higher. My lump sum (option 3) is $67,279. Roll over (option 1) is $84,199. Option 5 (collect pension at 65) is $1155. Is that right?

 

Yours sounds very close to mine. Same time served, 58, 250k lump. In 2009, I received another check for 12k due to an initial miscalculation.
Ignore most of these posts. The usual jerks. Time is the key factor, obviously. The difference in payout for 25-30 yrs is going to be exponentially higher than 15-20 yrs. Pfizer and Fidelity aren't going to fool around with this, too many auditors sniffing around and too many penalties. Even Pfizer isn't that arrogant and/or stupid to play games with this.

 

Yes on trolls, no on the numbers.

 

Funding was in the 60-70% range for years. Pfizer has it in the 90's to be able to do this....moron. You are so stupid. Just go away.

 

With numbers all over the board, can't believe any of them. Your number is yours. Not mu ch you can do about it other than reporting it to ERISA.
Pfizer/ Fidelity has their formulas, they dump your numbers in, and what comes out is it. They are not going to negotiate with thousands of people who don't agree, unless it was a class action scenario.
So, if you got your million, congrats. If you got your 200k, congrats. It is what it is.
Done, finished. Don't be stupid trying to get financial advice from these clowns, even though some of it is sound.

 

Yes, it looks like your Option #1 number is in the ballpark. I think the key numbers are, your age (45) and your Option #5 pension number (which was calculated years ago when you were an employee and is a function of your salary and years of service). I don't know if years of service is being used in the lump sum calculation (not enough data).

I found a web calculator that seems to do a pretty good job with checking the numbers. I plugged in my numbers (age, option #1 number, posted yesterday) and a couple other ones posted here (not the idiots who are trolls) and in general it makes sense (what I'm getting for a monthly benefit at 65). The calculator I used was the Guaranteed Income Estimator on the Fidelity website.

Fidelity.com > Investment Products Tab > select ANNUITIES > Deferred Income Annuities > Guaranteed Income Estimator (bottom right)

If you put your age in and your lump sum (option #1), you should get a monthly benefit that approximates your option #5 number at age 65 (after all, a pension is very similar to an annuity, the only difference is who holds the risk, Pfizer or you (via the insurance company)). If you know of any other good calculators, post them.

Not enough people have posted their #'s to determine trends (e.g. is there a group that is getting a slightly better/worse deal). If I had to guess, I think the older folks with high option #5 pensions might be getting a slightly lower option #1 offer.

Report on Lump Sum Sponsor Experience (I'd like to see age vs. lump sum acceptance data - didn't see that):

http://www.aon.com/attachments/human-capital-consulting/lump-sum-window-experience.pdf


As another poster pointed out, I think that Pfizer is going to play this one straight. From the offers posted here (the real ones), I think we are getting a "market" deal. But, Pfizer has not "sweetened the pot" in order to convince all of its ex-employees to walk away with a lump sum. If the data in the Aon document carry over to the Pfizer offer, 40% to 50% will take the lump sum.

 

With adjusted rates:
2012 - 102.52%
2013 - 96.42%
2014 - 95.29%

Without adjusted rates:
2012 - 85.81%
2013 - 78.43%
2014 - 73.52%

Arguments look better with data.

 

Thanks for your input everyone. I just saw all of the high payouts and thought, man, I'm getting the short end of the stick. My base as DM was the minimum salary in the range. I skipped many levels within each position which did my salary a disservice. Ex., going from Specialty Rep 2 level directly into a DM position. So much for being on the "fast track". It screwed my salary up in the long run. I had to leave Pfizer to get the salary that most DM'S were getting. Otherwise, with typical performance review increases, it would've taken me years to get where I needed to be. Left the company and started another DM position with $40 more in salary plus a sign on bonus. Sad that I had to leave just to be in line with the average DM salary.

 

I meant $40k more in base

 

54 years old
16 years
Legacy W-L

Lump into IRA- $198,400.12
Lump into cash - $150,000
Monthly now - $1050
Monthly at 62 - $1720

Met with my financial planner last night (after getting the numbers on-line. Nothing in the mail yet). His advice was to roll the lump into an IRA. We'll be able to grow it close to the PFE number by age 62 (assuming that I draw at a 5% rate per year from the new capital). Also provides extra cash to draw from if need at any point past 59.5

 

Looks right. What many are doing incorrectly is taking the monthlyx12x23yrs.(varies , but is average longevity past 65). In your case 2500x12=30000x23=690000. Pfizer isn't going to pay you your entire pension in a lump sum. If that were the case any fool would take it and run.
Your lump is what has accrued up to your age and tenure. THAT is what your lump sum is.
These 6-700K numbers are flat out wrong. They will be in for a big disappointment when they get their checks.

 

The entire trick is years of service at the same pharma company; the more you have and the older you are is it. Like 35 yrs. over 25 makes huge difference. No matter what your base salary it went up. Problem is everyone thinks grass is greener... ten years here, ten years there, etc. never equals what the one time pharma rep got. In many cases it would work out more than the DM at whatever level he/she was.

 

Age: 48
Tenure: 8 years, legacy Pharmacia
Rollover:$47,225
Lump Sum:$37,780
Monthly Now: $162
Monthly Later: $780

I think I'll pass on this one...

 

Poster #74

Your planner is assuming a 9% return for the next 8 years (net of their fee and other expenses which could mean another 1-2% for total return of 10-11% required). Highly unrealistic. Plus at 1% AUM they stand to gain an additional 16K or so from this advice. 5% withdrawal might not be sustainable if your have longevity in your favor. Might want to do a bit more research.

 

See Post 75. He's correct.

 

I am happy with my lump sum and will roll it over into the IRA I funded with my Pfizer 401k when I left. Gotta love a pension that you did not even contribute to! My 401k has done very well since leaving Pfizer. When I put the roll over lump sum with it, it will be pretty big money by the time I am 65. Even if I am able to get modest returns, it will be a better deal than the annuity when turning 65. (401k + lump sum pension). Either way, thank you Pfizer for a nice chunk of change for my retirement.