SGP Retirement vs MRK Retirement

[Anonymous]

I am hoping that someone with knowledge can address this question --as a legacy SGP I am aware that there is different annuities available that pay between 20-40,000 per year based on years of service to retirees but I cannot find out any news of the MRK plan since we cannot access that site at present time---is the MRK plan a lump sum, annuity, or some other deal---if a lump sum, what has been a general figure to retirees after 20 years etc. Thanks to any MRK rep or retiree that can help as I am sure that many others have similar questions

 

[Anonymous]

From my understanding, all SGP legacy employees will remain under SGP's retirement plan. They are continuing to contribute the same way they did prior to the merger to the SGP plan. I have not heard anything about them merging the Schering legacy into the Merck plan. Has anyone heard anything different?

 

[Anonymous]

Lump sum or annuities which come in a few flavors. Several options at different percentage of survivor's benefits or none which get you a higher amount. 25+ years and the lump sum is about $500K. Not sure about 20 years. You can kind of extrapolate.

 

[Anonymous]

Thanks for your help in answering--500,000 seems like a bargain with average life spans around 80 plus years

 

[Anonymous]

Lump sum or annuities which come in a few flavors. Several options at different percentage of survivor's benefits or none which get you a higher amount. 25+ years and the lump sum is about $500K. Not sure about 20 years. You can kind of extrapolate.

If you have 25+ years of service, and don't want any survivor benefits, what's the highest an annuity will pay each year? Do you think the lump sum is a better option?

 

[Anonymous]

If you have 25+ years of service, and don't want any survivor benefits, what's the highest an annuity will pay each year? Do you think the lump sum is a better option?

Disclaimer: you really have to run the modeling for your own situation.

That said, here are the scenarios which are changing constantly. Assuming you are retiring from Merck at 55 and after.

Lump sum - slightly more than $500K.

Life Income option to you alone to age 62 - about 3K a month. After age 62, drops by $50 per month. If you kick the bucket, Merck is free and clear.

Under Life Income with Certain Period & Life Guarantee Options there are three: 5 Year Guarantee Annuity around $2800/month; 10 Year Guarantee Annuity that is about $50 less; then the 15 Year Guarantee Annuity which is another $50 less.

Lastly, the Social Security Option. The Age 62 option (earliest you can retire and receive SS at a reduced amount) is about $4K a month to age 62 and drops down to $2200. The Age 65 option starts at $100 less, then drops to $1800 when you start to receive SS at age 65.

Lump sum or annuities? That you have to figure it out yourself. Risk versus stability. Most of us took a lump sum and roll over to a IRA. You can roll your 401K into it also. The calculation for lump sum is changing constantly and the pot is getting smaller and smaller.

Good luck.

 

[Anonymous]

Disclaimer: you really have to run the modeling for your own situation.

That said, here are the scenarios which are changing constantly. Assuming you are retiring from Merck at 55 and after.

Lump sum - slightly more than $500K.

Life Income option to you alone to age 62 - about 3K a month. After age 62, drops by $50 per month. If you kick the bucket, Merck is free and clear.

Under Life Income with Certain Period & Life Guarantee Options there are three: 5 Year Guarantee Annuity around $2800/month; 10 Year Guarantee Annuity that is about $50 less; then the 15 Year Guarantee Annuity which is another $50 less.

Lastly, the Social Security Option. The Age 62 option (earliest you can retire and receive SS at a reduced amount) is about $4K a month to age 62 and drops down to $2200. The Age 65 option starts at $100 less, then drops to $1800 when you start to receive SS at age 65.

Lump sum or annuities? That you have to figure it out yourself. Risk versus stability. Most of us took a lump sum and roll over to a IRA. You can roll your 401K into it also. The calculation for lump sum is changing constantly and the pot is getting smaller and smaller.

Good luck.

Thank you. I am 52 and would like to retire at 55. Between now and then, a lot can change. This info is very helpful though. Thanks again.

 

[Anonymous]

Okay, here is a question. What about those of us that came from Organon to SP? We were never given SP retirement, and no one has talked to us about Merck retirement, are we just SOL?

 

[Anonymous]

Thanks for your help in answering--500,000 seems like a bargain with average life spans around 80 plus years

500K is kick ass. who is this lucky?

 

[Anonymous]

Lump sum or annuities which come in a few flavors. Several options at different percentage of survivor's benefits or none which get you a higher amount. 25+ years and the lump sum is about $500K. Not sure about 20 years. You can kind of extrapolate.

Where can you get the lump sum information? I went online https://benefitsweb.com/retirementcenterweb.html and they only have monthy payment options.

 

[Anonymous]

Disclaimer: you really have to run the modeling for your own situation.

That said, here are the scenarios which are changing constantly. Assuming you are retiring from Merck at 55 and after.

Lump sum - slightly more than $500K.

Life Income option to you alone to age 62 - about 3K a month. After age 62, drops by $50 per month. If you kick the bucket, Merck is free and clear.

Under Life Income with Certain Period & Life Guarantee Options there are three: 5 Year Guarantee Annuity around $2800/month; 10 Year Guarantee Annuity that is about $50 less; then the 15 Year Guarantee Annuity which is another $50 less.

Lastly, the Social Security Option. The Age 62 option (earliest you can retire and receive SS at a reduced amount) is about $4K a month to age 62 and drops down to $2200. The Age 65 option starts at $100 less, then drops to $1800 when you start to receive SS at age 65.

Lump sum or annuities? That you have to figure it out yourself. Risk versus stability. Most of us took a lump sum and roll over to a IRA. You can roll your 401K into it also. The calculation for lump sum is changing constantly and the pot is getting smaller and smaller.

Good luck.

Wrong..Merck's is based on % of salary + bonus for 5/9 of best years and increases with increased years of service! Before 94 it was 2% and they was lowered to 11/2% per year of service! Before the rule of 85 there is a penalty! Lump Sum has been effectively killed as an option because of low interest rates and annuity calculations! If they were still intact as 6 years ago a 30 year employee retiring now with a 100K salary would have gotten 1.6 million which would be a pretty nice nest egg but Merck has screwed with everyone's money to make it less attractive (without grandfathering)! Take the payout monthly for that same 100K worker it would be 56K/ yr reduced by half your SS when it kicks in! Better mouse trap!

 

[Anonymous]

500K is kick ass. who is this lucky?

Many of the recent retirees walked away with that much. I think there are still a few left qualified for it.

 

[Anonymous]

Wrong..Merck's is based on % of salary + bonus for 5/9 of best years and increases with increased years of service! Before 94 it was 2% and they was lowered to 11/2% per year of service! Before the rule of 85 there is a penalty! Lump Sum has been effectively killed as an option because of low interest rates and annuity calculations! If they were still intact as 6 years ago a 30 year employee retiring now with a 100K salary would have gotten 1.6 million which would be a pretty nice nest egg but Merck has screwed with everyone's money to make it less attractive (without grandfathering)! Take the payout monthly for that same 100K worker it would be 56K/ yr reduced by half your SS when it kicks in! Better mouse trap!

I was the one that posted the numbers. I retired last year and copied them off my own printout with 25+ years of service. My apology if it has since been changed and the lump sum option is gone. Perhaps Merck does not like writing all those $500K checks. At least a dozen of my former colleagues went for that option in one region. Multiple that by how many times for the rest of the nation and Merck probably paid out quite a bit. Ultimately a person should sit down with an adviser and decide which is the best option for him or her.

 

[Anonymous]

I was the one that posted the numbers. I retired last year and copied them off my own printout with 25+ years of service. My apology if it has since been changed and the lump sum option is gone. Perhaps Merck does not like writing all those $500K checks. At least a dozen of my former colleagues went for that option in one region. Multiple that by how many times for the rest of the nation and Merck probably paid out quite a bit. Ultimately a person should sit down with an adviser and decide which is the best option for him or her.

Just like social security, Merck's pension plan is drying up. That there is no grandfather clause for people who are over 50 isn't fair. We spend the bulk of our working lives with expectations provided by a given set of rules, only to see them change in the final hours. Merck has gone from revered to dysfunctional. Execs walk away with tens of millions, while the average worker is screwed.

 

[Anonymous]

Just like social security, Merck's pension plan is drying up. That there is no grandfather clause for people who are over 50 isn't fair. We spend the bulk of our working lives with expectations provided by a given set of rules, only to see them change in the final hours. Merck has gone from revered to dysfunctional. Execs walk away with tens of millions, while the average worker is screwed.

It is kind of sad and a blessing to many of my friends who are tenured and gave so much to Merck. Some worked like they were from the Depression Era. Some won VP Awards over and over, year after year, under different managers, and under different rules. They were the real producers. All of them were summarily displaced. They received a very good severance package. The larger pension helps to ease the transition. But some were disappointed because they gave so much and Merck simply said goodbye without thanking them.

 

[Anonymous]

It is kind of sad and a blessing to many of my friends who are tenured and gave so much to Merck. Some worked like they were from the Depression Era. Some won VP Awards over and over, year after year, under different managers, and under different rules. They were the real producers. All of them were summarily displaced. They received a very good severance package. The larger pension helps to ease the transition. But some were disappointed because they gave so much and Merck simply said goodbye without thanking them.

A thank you is always nice, but all that matters in the final analysis are the dollars and cents. If you were tenured and let go, and received a generous severance package and larger pension, count your lucky stars!!! Those of us tenured reps that are still here at Merck will get a far inferior deal when our number is up...and no "thank you" on top of that.

 

[Anonymous]

Just like social security, Merck's pension plan is drying up. That there is no grandfather clause for people who are over 50 isn't fair. We spend the bulk of our working lives with expectations provided by a given set of rules, only to see them change in the final hours. Merck has gone from revered to dysfunctional. Execs walk away with tens of millions, while the average worker is screwed.

And of course you remember that the 'Vioxx' gp. made themselves a get out of work free card so they all got an accelerated package if they went! Sounds just like the federal government with the ones killing the goose makes themselves a feather bed! Everyone in this industry is still suffering the pains of mismanagement and idiotic marketing and we really think that what we're doing now will instill 'trust & value' as usual marketing and management is FOS! 30% of our customers hate us for Vioxx and 70% hate us for pulling Vioxx and acting guilty! The pension should have been grandfathered for all those Merck 25+ leagacy reps who've given quite a lot for this company and taken a whole lot more! Mercks reputation was based on the long term tenured reps in the field now our companys enduring legacy is top level mismanagement and marketing SNAFU's! Most of the time "When you forget those who got you where you are you'll soon forget where you are going"! Ain't it sweet!

 

[Anonymous]

As a 25+ tenured rep I began to resent all the Barbie's and Ken's Merck hired. They invite themselves to dinners I had with key physicians who would not go out with them. Those docs see them as just another rep. After awhile I don't even let them know of my dinner plan or request that they keep their mouths shut if they really want to come along. We know the secret doors to the clinics where our top docs are while they have to wait outside for their turns. The next thing you know they start following you into the clinics, claiming to be your best buddies. Again, you then sit at meetings and hear their success stories. I am a darn good rep. But I can't play this kind of game.

 

[Anonymous]

A thank you is always nice, but all that matters in the final analysis are the dollars and cents. If you were tenured and let go, and received a generous severance package and larger pension, count your lucky stars!!! Those of us tenured reps that are still here at Merck will get a far inferior deal when our number is up...and no "thank you" on top of that.

Agree. Greedy, ungrateful people is what they are called. Some people always fail to see how lucky they are compared to others. There are people who have worked just as long and even harder and receive little or nothing in return.

 

[Anonymous]

Agree. Greedy, ungrateful people is what they are called. Some people always fail to see how lucky they are compared to others. There are people who have worked just as long and even harder and receive little or nothing in return.

You think those retired with a decent package are greedy? No. Most are happy with the money. Some felt the company simply dumped them after years of hard work and loyalty. Merck is screwing current employees by changing the retirement benefits, which cause people like you to resent those who have retired. In the old days we all looked forward to retire with a decent pension. As a rookie then, everyone in the district with tenure retired with over $1M if not more. That was the norms.