ATTENTION: Legacy Wyeth 55+

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Yes, the original poster was correct. Lump sums are dropping like the rock because of the increase in the spot segment interest rates. They are posted on the IRS.gov Website.
 




anonymous said:
Yes, the original poster was correct. Lump sums are dropping like the rock because of the increase in the spot segment interest rates. They are posted on the IRS.gov Website.
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The spot segment interest rates apply ONLY to the pfizer pension, which accounts for ~ 10% of a tenured legacy Wyeth colleague. The Wyeth pension accounts for ~90% of the Total Pension payout. This is driven by the PBGC rates which are entirely different from spot segment rates.

It disturbs me that this critical information is sooo poorly understood. Please take the time to educate yourself with respect to this once-in-a-lifetime event.
 








anonymous said:
Different rates, but same result, lower lump sum payout.
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SO true. Not difficult to understand. That's the bottom line! If you're over 55 and eligible to retire you may look back and see what you earned by staying is equal to or less than your lump sum loss. Therefore....you just worked a year or 2/3 for nothing!!! You really need to think about that.
 




your last day better be no later than Feb 28. If you work on march 01, you walk away from the best lump that you will ever see. and, you will work for pfizer for FREE for the better part of a year. Yuck.
 




Not in the situation but 55 is awfully young to retire and not have a company car, benefits, etc. Might be a good idea to go back to school and change careers into something more professional.
 
















The person never said the pension is 3.2. They likely have 401k money and other savings that add to the pension to make that total. If they plan well and have lived within means, 3.2 M is plenty to live on. Perhaps a side job for interest, but not the stress. I'd do that.

anonymous said:
More like canned @ 50 and dead broke trolling !
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anonymous said:
#28: You cannot do math; 3.2 million in your "delusions of grandeur."
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I can do math. $3.2M was at the start of the year. Now( 6 weeks into this year ), $3.235M.
I share this number to illustrate what is possible when one saves 15% over a long career and was fortunate to depart during the interest rate bottom.

The "delusions of grandeur" suggests that you do not believe that this is a figure you can achieve. That is sad. Dig a little deeper and try a little harder and you too can arrive comfortably at the destination known as: Financial Independence. Good luck.
 








Rate hike coming (with more down the road). More lump sums coming down More people working for free this year (and next) Salary - lump sum decrease = 0. It's not going to get any better folks. Old timers(most in Vaccines) have decisions to make!!
 




No sales rep (legacy or not) is getting a lump sum pension 3.2 for 30, 35, or 40 years of service. It just is not happening. Maybe you are looking at your 401K also but NOT A PHARMA CO LUMP SUM PENSION.
 




yes we get lump sums, like huge lump sums but for many the monthly check for life could be better. from before ;

Retired from another big pharma company but they only give the monthly check instead of the lump. It worked out very well so far and I am quite pleased.
 




Legacy Wyeth and retired from Pfizer on 2/28/2017 with 18 years of service. My lump sum from the Wyeth pension was $1.1M for 11 years of service and lump sum from the Pfizer pension was $250K for 7 years of service. Like the original poster said, increasing interest rates significantly impact the lump sum payment of the Wyeth pension and if you stay you will be working for nothing this year. If you did not retire on 2/28 you still have a few months before the higher interest rates announced last week by the Fed will negatively impact your lump sum. Keep in mind, Fidelity does a four-month look back on interest rates that are used to calculate you lump sum payment.
 




anonymous said:
Rate hike coming (with more down the road). More lump sums coming down More people working for free this year (and next) Salary - lump sum decrease = 0. It's not going to get any better folks. Old timers(most in Vaccines) have decisions to make!!
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NOTE: Many lose sight of this CRITICAL point. If you chose the monthly check ( instead of the lump ), the interest rate direction is a moot point. The check choosers can ride this gravy train to infinity and beyond!! If, they can tolerate the current mindless metric model.
 








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