Novartis "Cash Grab" Scams & Screws Employees !

[Anonymous]

At Novartis, Pensions Are Out and Cash-Grabbing Is In


By Jim Edwards | June 22, 2011

Novartis (NVS) has begun to take for itself hundreds of millions of dollars it normally would have given its employees in pensions due to a complicated change in retiree benefits being rolled out across the company.

In 2009, the company began considering a change from “defined benefit” to a “defined contribution” pension plan. The former pays retirees a guaranteed amount for the rest of their lives; the latter pays a fixed amount during the staffer’s employment, but after that the retiree is on his or her own.

The official explanation for the change came after the stock market crash of 2008 and 2009 showed that the markets were too volatile to be trusted with something as important as retirement. The company’s pension funds fell below their requirements to fully fund their pensions — meaning Novartis was liable for the shortfall.

But the unofficial explanation is that this is simply a transfer of wealth from Novartis’ employees to the company and its shareholders. The pension change is being rolled out gradually across the company, with its 30,000-member Swiss arm already operating under the new rules. Novartis has about 99,000 employees worldwide.

In 2010, Novartis reported a pre-tax gain of $265 million from the switch

 

[Anonymous]

Not sure how old this article is, but they changed the pension plan a couple years ago...

 

[Anonymous]

Coupled with this is getting rid of as many employees grandfathered into pension plan as possible without exposing themselves to age discrimination class action suit. Getting rid of a 50 plus rep is not just axing a generally higher salaried employee ( due to tenure ) but more importantly they remove a 20 - 30 year pension liability. This was especially apparent in the NS/Psyche displacements where there "were" a high number of employees over 50.

 

[Anonymous]

Not sure how old this article is, but they changed the pension plan a couple years ago...

It's not that difficult since the date is posted on the article,
6/22/11, in case you missed it, again.

Yes it was changed appx 2 years ago but it takes a while for
the repercussions to be felt

You must be in mgmnt , good grief !

 

[Anonymous]

My point was that this article is referencing the pension change notice sent to employees in the UK recently. We saw this change almost 2 years ago - yet he touts it like it's something new. The change in pension formats has been (and will be) a movement more companies take as they look to soften the blow of future liabilities.

Sure it sucks, but it's all the more reason you should be smacking more into your 401K - which the compamy matches part of as well.

 

[Anonymous]

yah, put your money in a 401k so it cant grow. like the last 10 years.

ps. our ceo makes $26 million a year.

 

[Anonymous]

As a retiree of eight years, may I ask someone more astute than myself, to please explain how this impacts me? I am in the second pension plan, which was created when the original merger occurred. Thanks to everyone for their help.

 

[Anonymous]

Ha-just cashed mine out! 22k after 61/2 years at Novartis. Rolling into an IRA. I thank god every day for that relief phone call that came December 2nd 2010.

 

[Anonymous]

Rolled my $550,000 IRA to different agency that is more aggressive, receiving my $5200 pension every month--it is a wonderful thing to be old and laid off from Novartis. I was most fortunate in the December purge. In addition, I have a new job that equals the salary from Novartis so I will be living high until I decide to really retire

 

[Anonymous]

yah, put your money in a 401k so it cant grow. like the last 10 years.

ps. our ceo makes $26 million a year.

BINGO! This is your problem, not only in Novartis but America as a whole. Your capitalist system has evolved into such crazy dog eat dog that those CEO's and their imediate lapdogs are taking in so much of the loot that less and less is available to others. Also those fucking Wall st types who plunged America and the rest of the world into the biggest recession ever, have been taking so much and contine to do so that 1% of your population is controlling 50% of the wealth in America. And they want even more. Look at your moutherfoucker CEO making 26M for what? That other MF, Vasella makes $40M base and he still want more.
Till you as people stand up and say enough is enough this will go on and you will only get worse off. Mind you, you still are doing fine because your company and bigpharma biz in general is pullng in huge profits due to crime they use to get more out of the pie available so you get few chicken bones that amount to good income compared to others who work in say, rustbelt etc. But as you see it Novartis is slowly cutting down on your benefits and soon you'll have nothing.
Saw bunch of experts on TV the other day and one of them (nobel prize winner) says US financial system is nothing but a iant Ponzi scheme and fuckers like your CEOs are responsible. They are the ones who terminated the AMERICAN dream for you but kept it for them. So what are you going to do about it? Just let them get away for ever till they turn you into modern age slaves?
ps: if you rerally want to get back at them; turn wistleblower with evidence on their crimes. That is the way to do it, hit them where they hurt, into their bank accounts. That way your pension is assured and you'd be doing the right thing for your country.The multinationals like Novartis ain't no friends of you or your country.

 

[Anonymous]

As a retiree of eight years, may I ask someone more astute than myself, to please explain how this impacts me? I am in the second pension plan, which was created when the original merger occurred. Thanks to everyone for their help.

Sir or ma'am, I'm sorry but I have not been tenured enough, four years, to answer your question.

I hope someone here knows the answer and responds because what all of us now have, the good parts, we owe to you and your reps of those days. I would like to know the answers myself in your case.

Is there anyone here who can help this individual? All of us now are only as good as we treat those who worked before us.

 

[Anonymous]

As a retiree of eight years, may I ask someone more astute than myself, to please explain how this impacts me? I am in the second pension plan, which was created when the original merger occurred. Thanks to everyone for their help.

My guess, and it's only a guess, is that you will not be impacted at all by the newer pension options if you were included in the original Novartis plan that took place at the time of the merger. To be on the safe side, you should contact the Benefits Resource Center at 877-515-0005 or Fidelity Investments at 800-354-3971. Good luck.