Would You Stay with Merck for the Pension?

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SGP Pension Info:
Schering provided an annuity pension, no cash out option. Previous poster is correct, figure $100 per month per year of service (depending upon income earned) if you begin pension benefits at 65 years old. This SGP Pension was frozen in 2013.

In 2013, you started a new pension plan that will last until 2019, at which time it will be frozen and you will start the new harmonized pension plan beginning in 2019. Between the years 2013 and 2019, heritage SGP people will get the better of the two plans. After talking with HR, it looks like the Merck pension plan is the better one right now as my cash balance has grown to nearly $70k while my annuity portion has not changed.

This is important stuff, people. If you have questions about your pension, call HR. And, don't read about Merck pensions and think it relates to yours, it doesn't, (unless it is forward looking) the Merck people have different issues they have to worry about.
 






This year I will turn 50 - and I become bridge eligible. When I walked into the office knowing this on January 5th of this year I ran the pension model - the value of my lump sum was $400,000 more when modeled with the Bridge. Total lump sum at age 55 (assuming I were to be laid off this year) would be $1.1 Million ----- Oh, and that's not the same Million as is in the 401K! My starting salary at Merck was $28K back in 87 and I drove crappy cars and put up with lots of arrogant egos - now I'm laughing to the bank - hopefully!

So - to the OP - stay if you are in, or near, the zone. Stay if thinking about how your many years have gotten you close to critical mass puts a smile on your face when you come to work.

If you have decades to go and feel like throwing up when you come to work - leave, because the heart attack or stroke is not something any amount of money will ever compensate.
 












Count your blessings, I hear there are people way over 52 or more who were literally screwed out of their bridge on money and the medical bridge benefits. These people are forced onto high cost catastrophic with huge deductibles.
 






People will not make it to 62 much less 65. They are too expensive. Doesn't anyone get the picture? I remember a friend who was 58 about 12 or so years ago who worked at Merck for about 25 years. All of a sudden one day he and five other guys over 55 were just let go. I told them they had a class action suit due to age discrimination but they just took their 1 million plus check (that they had earned by working). How sad as they could have had so much more and were cheated out of additional work years.
 






Anonymous said:
Count your blessings, I hear there are people way over 52 or more who were literally screwed out of their bridge on money and the medical bridge benefits. These people are forced onto high cost catastrophic with huge deductibles.
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If someone who is over 52 missed the bridge, they must not have had ten years. Why should the company provide subsidized medical to people who spent most of their career at other companies? It does not make any sense. Go back to your former employer and see what they say when you ask them for life time medical.
 












Anonymous said:
You have definitely come to the right place for solid answers on extremely important topics such as retirement.....CafePharma!!!
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The reason employees come to Cafe Pharma for Merck retirement answers is quite evident. Talk to your manager, DCO and fellow employees, all are confused especially about 2019. All have done the online model, talked to Merck retirement center on the phone and are still confused.

Merck will be in a major legal battle in a short few years about this topic. It is a smoke and mirrors show with little information and disclosure. You think Merck would cover their arse and have an online mandatory annual training requirement. 2019 will be chaos and flaring tempers, those who thought they understood the terms and conditions will be fuming.
Good news or bad news, STEP IT UP MERCK, explain the retirement plan NOW or spend a fortune in a mass lawsuit in a short few years!
 






anonymous said:
The reason employees come to Cafe Pharma for Merck retirement answers is quite evident. Talk to your manager, DCO and fellow employees, all are confused especially about 2019. All have done the online model, talked to Merck retirement center on the phone and are still confused.

Merck will be in a major legal battle in a short few years about this topic. It is a smoke and mirrors show with little information and disclosure. You think Merck would cover their arse and have an online mandatory annual training requirement. 2019 will be chaos and flaring tempers, those who thought they understood the terms and conditions will be fuming.

Good news or bad news, STEP IT UP MERCK, explain the retirement plan NOW or spend a fortune in a mass lawsuit in a short few years!
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There is zero guarantee on a pension live with it and move on. None of you will be around to get a pension let alone SS. Better concentrate on saving and investing.
 






I just watched a video that was made in October 2015 and the story with 2019 is... that after 2019 the cash balance will be counted only. For L-SP employees there will no longer be which is higher (avg pay or cash balance). It will just be the cash balance calculation after year 2019.
 






anonymous said:
I just watched a video that was made in October 2015 and the story with 2019 is... that after 2019 the cash balance will be counted only. For L-SP employees there will no longer be which is higher (avg pay or cash balance). It will just be the cash balance calculation after year 2019.
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So what does this mean? If you have a hefty payout today in the pension modeling with many years of working at Merck and if you don't leave Merck by 2019 you will lose that accumulated payout? If the pension model indicates a lump sum payout in 2016 of lets say states 800,000 what will that lump sum be in 2020? Therefore if you don't leave Merck by 2019 the lump sum leaves you in 2020?
 






Not sure about legacy SP, but legacy Merck will not lose whatever they have already accumulated. The sum shown in the modeling tool will be frozen in 2019. The cash balance will just be added on top of it (starting in the beginning of 2020). No need to quit Mother if you don't have to.
 






anonymous said:
Not sure about legacy SP, but legacy Merck will not lose whatever they have already accumulated. The sum shown in the modeling tool will be frozen in 2019. The cash balance will just be added on top of it (starting in the beginning of 2020). No need to quit Mother if you don't have to.
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Really, if you are buying this I have some property in south Florida I'd like to talk to you about.
 










































anonymous said:
Well, if the company gets sold, there is no telling what will happen to the pension!
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I suggest everyone read "Retirement Heist" Its eye-opening expose on how companies use the retirement fund for personal and company benefit while at the same time screwing retirees. Every time they change the retirement plan its net effect is to screw retirees.
 






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