2020

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Because for some people, the difference between the Defined Benefit and the Defined Contribution plan is significant. People with a lot of time see a large discrepancy and will plan accordingly. Look at your benefits on the Benefits page and make the decision best for you and your family. Expect to see a large number of people exiting to maximize their pension payout.
 






anonymous said:
Because for some people, the difference between the Defined Benefit and the Defined Contribution plan is significant. People with a lot of time see a large discrepancy and will plan accordingly. Look at your benefits on the Benefits page and make the decision best for you and your family. Expect to see a large number of people exiting to maximize their pension payout.
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What you are saying doesn’t make any sense. Any accrued benefits until 2020 is guaranteed under the defined benefit plan. After 2020 it will still grow but at a slower rate under the defined contribution plan.
You don’t lose anything by staying on past 2020. It will just be a lower return than if the defined benefit plan had continued past 2020.

So, there is no reason to leave after 2020 unless you get a better offer somewhere else.
 






if you stay past 2019, your lump sum will not be locked in. It will float with the interest rates and will most likely drop as the interest rates rise. Also, don’t forget that if you are 55 this year or younger, Merck wiped out the retirement healthcare subsidy. It is all Age based, company time no longer in the equation. So frozen pension and healthcare eliminated for retirees, see ya!
 












If it is your choice you have to wait until 55 (the subsidy is a flat rate for all now regardless of company service). Roughly $550 for single, $1275 for a couple and $1750 if you have to cover dependants. If the company lays you off, you would be eligible for a very low medical,subsidy at 52. Either way it is not worth it to stay for medical since they pretty much eliminated the subsidy for those under age 56. Start a business and keep your earned income below 60k and you can get the lowest Obamacare rate going.
 












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