What’s up with Abbvie ASP+ program offering

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anonymous

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Many savvy smart people here that may have financial planner backgrounds. Help!

what is the deal with Abbvie one time offering of this new ASP+ program? It looks like a profit share and more contribution to your 401k instead of them continuing to add dollars to your pension. What you have with your pension now you keep.

is this some kind of message they are sending? They could stop funding the pension at any time without giving us any extra benefits unless we opt to do ASP+ now. I’m also worried that those that do not choose the ASP+ plan will be targeted for layoffs because it’s more expensive.
Any advice here from someone with a financial background? What to do if you’re older but not old enough to retire for another 10-12 yrs, 20 years of service.. go for ASP+ or stay with original offers and hope they don’t stop
Funding the pension anyway and you’re stuck with NOTHING! Thanks
 






anonymous said:
Many savvy smart people here that may have financial planner backgrounds. Help!

what is the deal with Abbvie one time offering of this new ASP+ program? It looks like a profit share and more contribution to your 401k instead of them continuing to add dollars to your pension. What you have with your pension now you keep.

is this some kind of message they are sending? They could stop funding the pension at any time without giving us any extra benefits unless we opt to do ASP+ now. I’m also worried that those that do not choose the ASP+ plan will be targeted for layoffs because it’s more expensive.
Any advice here from someone with a financial background? What to do if you’re older but not old enough to retire for another 10-12 yrs, 20 years of service.. go for ASP+ or stay with original offers and hope they don’t stop
Funding the pension anyway and you’re stuck with NOTHING! Thanks
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I would go for the ASP+. I would make sure you are including investing in Roth as well as pre tax.

With a pension you are stuck with a modest monthly check, which is taxed. No other option.

With the ASP+ you arent stuck with monthly annuity. You can take it in a lump, or however you want to withdraw and with a Roth the taxes are already paid!
 












They also provide a calculator that lets you model out the two choices based on your income, contributions, annual salary increase %, etc. Almost all of my different inputs told me to stay with the pension. Anyone else model their information out?
 


















I modeled mine and had similar results - every scenario was better with the pension. But I’ve been here 25 years and am 51. I thought the pension was a no-brainer but the comment above about being targeted for layoffs or having the company discontinue the pension and leaving those who went that route with nothing has me very worried.
 






anonymous said:
is this some kind of message they are sending? They could stop funding the pension at any time without giving us any extra benefits unless we opt to do ASP+ now. I’m also worried that those that do not choose the ASP+ plan will be targeted for layoffs because it’s more expensive.
Click to expand...
I'm sure they are trying to find ways to cut costs with the impending doom of Humira coming around the corner. Even if just a small percent of people swap to ASP+ without checking the models and doing the math, AbbVie wins by paying less. I doubt they would go through and gut their company to purge people with pensions because that makes up most of their best, veteran talent at this point. Everyone I've talked to in my office is holding onto their pension because it's simply better for them at this point.

Do what's best for you. If you get fired because the company wanted to penny-pinch and cut pensions then AbbVie wasn't right for you anyways.
 






anonymous said:
I modeled mine and had similar results - every scenario was better with the pension. But I’ve been here 25 years and am 51. I thought the pension was a no-brainer but the comment above about being targeted for layoffs or having the company discontinue the pension and leaving those who went that route with nothing has me very worried.
Click to expand...

You comment was smart up until the third sentence. Are you that naive? Imaging the headline {majority of people laid off were older than 50 and enrolled in a pension}. A bean counter showed how they could save a few %s with additional tax savings by adding a new retirement plan. Both are nearly equal to us but thats up for you to decide
 






anonymous said:
Many savvy smart people here that may have financial planner backgrounds. Help!

what is the deal with Abbvie one time offering of this new ASP+ program? It looks like a profit share and more contribution to your 401k instead of them continuing to add dollars to your pension. What you have with your pension now you keep.

is this some kind of message they are sending? They could stop funding the pension at any time without giving us any extra benefits unless we opt to do ASP+ now. I’m also worried that those that do not choose the ASP+ plan will be targeted for layoffs because it’s more expensive.
Any advice here from someone with a financial background? What to do if you’re older but not old enough to retire for another 10-12 yrs, 20 years of service.. go for ASP+ or stay with original offers and hope they don’t stop
Funding the pension anyway and you’re stuck with NOTHING! Thanks
Click to expand...
Most of the time when companies drop their pensions they offer more 401k contributions and other benefits to make up for it. It's a fine line of them wanting to save money, but they also don't want people to quit because the retirement plan is trash. I'd stay with the pension if it's better for you. Although, it's entirely possible that the ASP+ plan will be better than the plan they make you default into when the pension is axed.
 






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