So when does the defined benefit pension plan get cut or changed?

Discussion in 'Johnson & Johnson' started by Anonymous, Jan 30, 2010 at 4:15 PM.

  1. Anonymous

    Anonymous Guest

    It has got to happen, and soon. J&J financials no longer support such a lucrative plan. I think they will have to change participation, vesting, calculations, and/or limit it significantly and enhance the 401K a touch. Who know what will hapeen and when???
     
  2. Anonymous

    Anonymous Guest

    The plan did change a ffew years back. It was calculated differently and the benefit was cut SIGHTLY, but was still a good plan.

    Current final decisions are in the works as far as how the pension plan will be eliminated. If you are vested what you have alreadyy earned is YOURS.

    New employees will not be eligible for the company pension. Plans are for 100% company match up to the first 5%.

    It is still up in the air as to whether or not the pension plan will be frozen for those that already have it or if they will still accrue this benefit as an old employee and be completely eliniated for new hires.

    This will be rolled out the second half off the year. Most likely the pension will be frozen for the current employees who are vested with 5 years time. You will find out what that is worth and that will be the dollar amount when you retire.

    New hires, take advantage of the 100% company match.
     
  3. Anonymous

    Anonymous Guest

    Oh, you didn't hear? The pension was just cut... for about 8,500 people and another 900 back in April. Hope we all live long enough to get it after 62!
     
  4. Anonymous

    Anonymous Guest

    It is not just happening here. Astra Zeneca announced 8,000 - 9,000 earlier this month. Today, Glaxo Smith Kline announced 4,000 to be axed.
     
  5. Anonymous

    Anonymous Guest

    You are vested after 10 years, that money is yours to keep. Those cut cannot continue to contribute throughout their severance, but they can have disbursements begin as early as age 55. That amount is reduced from what they would get if they wait until age 62.
     
  6. Anonymous

    Anonymous Guest

    That is not correct. You are vested AFTER 5 years.
     
  7. Anonymous

    Anonymous Guest

    Boy are you guys dumb! This post was sarcasm that they basically pulled the financial future out from under thousands of people therfore resulting in an end to the pension plan for many. I know you are vested after 5 years and can collect, but it pales in comparison to what you would get if you worked for 20-30 years.
     
  8. Anonymous

    Anonymous Guest

    Having been one who has worked near 30 years, and was also cut, it is not that much of a financial future. If you didn't save you are still screwed.
     
  9. Anonymous

    Anonymous Guest

    I know we have the pension calculator, but how much did you get in pension after 25+ years?
     
  10. Anonymous

    Anonymous Guest

    Grossly oversimplified, each 10 vested years give you about 10 % of your final pay at 62
     
  11. Anonymous

    Anonymous Guest

    Grossly oversimplified, yes; but pretty damn accurate. After close to thirty years my pension is 30% of what I made working for the company. So, back to what the previous poster mentioned; you better save or plan on part-time work because not many can live on 1/3 of their previous income.
     
  12. Anonymous

    Anonymous Guest

    If you retire before 62 the pension benefit is reduced 4% for every year from 62. For example, if you retire at 60 your benefit would be reduced 8% vs full benefit at 62.
     
  13. Anonymous

    Anonymous Guest

    Our pipeline is promising and we have great leadership that has heading in the right direction. Why would I retire? Well...gotta run and make a few more calls before I head home to have dinner at 7:30.
     
  14. Anonymous

    Anonymous Guest

    Is it true that once you start collecting social security the company reduces your pension by the amount of your SS payments?
     
  15. Anonymous

    Anonymous Guest

    That's already worked into the calculation. You're not going to get rich on the pension but it's nice to have as a base. Unless they're lying on the projections, mine will be 57% of my base salary. I hate to go against the grain and be somewhat positive on this site, but not bad as a base (plus SS, and income you can generage from personal savings, and 401k). But yes max out on 401k and save, save, save, the pension alone won't do it.
     
  16. Anonymous

    Anonymous Guest

    But the whole point of this thread is that there are rumors that the pension plan is being discontinued. Does anyone know anything concrete about when the changes are to come or how currently vested employees will be affected? If they do freeze it at some point, unless you are currently 62 or older you will never get to the 30% of salary that has been discussed.
     
  17. Anonymous

    Anonymous Guest

    It depends how you have the pension funds allocated. If you collect a pension at 55 you can get more up front (level pay) until you are 62, then that amount will be decreased so when SS comes in the total combined monthly amount will be the same. If you collect at 62 the amount of your pension is not decreased.
     
  18. Anonymous

    Anonymous Guest

    Not true, you can get to 30% if your tenure is at, or close to, thirty years. Its not necessarily age only related.
     
  19. Anonymous

    Anonymous Guest

    It depends which benefit you choose. Some of the plans made available to those who retire early will have a larger payout until they reach 62 when their payout is reduced by the amount you recieve from SS. You can take a lower benefit if you retire before 62 that will not be affected. I retired when I was 58 and my pension was $3900 per month that was reduced to $2450 when I turned 62 but I did start to collect $1750 from SS. I could have taken about $2850 monthly that would have not been reduced but I elected to take the higher payout for 4 years. This is a lifetime benefit and my wife will receive $2400 a month when I die. This was just one of several programs that I could have picked with benefits ranging from 5-20 year payouts to a lifetime payout. Now this may not be the program that is available now but when I retired this was the JNJ pension program.
     
  20. Anonymous

    Anonymous Guest

    Thanks for your informative response. I'm sure you utilized the pension calculator when you were still working. I am wondering how accurate that thing is. I am looking to retire in the next couple of years. I plan on electing the 100% lifetime benefit for my wife also, so that the pension does not reduce when I die. How many years ago did you retire? I know it is personal information, but would you mind sharing what your base salary was in your last year of employment. Any other suggestions to someone looking to retire? Thanks.
     

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