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PENSION

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Anonymous said:
Is it true that the lump sum option will no longer be an option come January 2012? Annuity will be your only option? Get out if you can and run with your money!!!
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Evidence for this statement please?
I think it more likely that Merck will eliminate the defined pension plan altogether rather than just eliminate the lump sum option.
 
















Can they legally change or eliminate the pension plan without giving us advance notice of the changes before they take effect? If there is a warning period required by law, how long is it?

Both legacy plans are posted on the intranet. The plans are somewhat similar, though there are some differences. For one thing, the legacy Merck plan includes a lump sum payout option. I fear that in the integrated plan for 2012 the lump sum option might go away and I fear that the minimums of age and service might be raised so that I am no longer eligible.

The legacy plans are theoretically in effect through the end of 2011, though interestingly enough, they both contain the same verbiage up front to the effect that the company reserves the right to eliminate or modify the plan in any way, at any time, for any reason!

I feel like there is a theoretical pot of money there that can vaporize at any moment, even before a new integrated plan if any takes effect in 2012. I wonder if I am gambling by remaining employed rather than retiring right away.
 




Anonymous said:
Can they legally change or eliminate the pension plan without giving us advance notice of the changes before they take effect? If there is a warning period required by law, how long is it?

Both legacy plans are posted on the intranet. The plans are somewhat similar, though there are some differences. For one thing, the legacy Merck plan includes a lump sum payout option. I fear that in the integrated plan for 2012 the lump sum option might go away and I fear that the minimums of age and service might be raised so that I am no longer eligible.

The legacy plans are theoretically in effect through the end of 2011, though interestingly enough, they both contain the same verbiage up front to the effect that the company reserves the right to eliminate or modify the plan in any way, at any time, for any reason!

I feel like there is a theoretical pot of money there that can vaporize at any moment, even before a new integrated plan if any takes effect in 2012. I wonder if I am gambling by remaining employed rather than retiring right away.
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You must be age 55 or over. If I were you, I'd have left by now! Take the lump sum and run!
 




I'm pretty sure by law, if they drop the pension, the pension you have earned up to that date is frozen. They will no longer add to it, but you will get what you've "accumulated" to that point. At least that's what I was once told.
 




I went through this once 10 years ago and they did indeed freeze the lump sum value of the pension. I can't recall if it continues to grow through investment of principle. In my case, the company merged a few years later. This was a change of control event and they then were forced to give us ownership of it. We were allowed to roll it over directly into an IRA.
 




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