Word on the street is that there will be changes made to the pension plan. Sounds like those who are eligible will need to retire to keep what they have, or stay and risk having it modified in accordance with the new plan. Anyone hear the same?
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Do what they like in any case.
Would prefer prison labor if they can play it out.
Pensions. Har-de-f-in-har.
What is stopping Ford from making modifications to salaried pension plans for active employees? Nothing stopped them from altering retiree health coverage. There is no union contract. The only leverage is to quit, and the company is at the point where they don't care if pension eligible quit. They want you to quit. Younger employees aren't impacted by pension plans, so the company doesn't have any future recruitment issues associated with sticking it to older employees.
@1ojx
This makes sense. And now I'm scared.
@OP+1iCXWPgo
Not challenging the OP but why would word on the street have pension changes. These would be the most secretive, holy grail, etc. part of Ford and not sure people on the street know that detail.
That said - has anyone been retired with the a Ford genuine pension for a couple years, and asked by Ford if they will switch to a lump sum? Is this possible? I have a friend who worked for Ford from 1985-1995 ish and got some kind of pension eligibility, who is not yet retired but says Ford has contacted them 2 or 3 time to get them to accept a lump sum vs the planned pension. Anyone heard of this?
If you are GRP eligible and do not retire by Nov 30, Ford will covert your GRP pension to a lump sum deposited into your 401K. The lump sum will use August, 2022 segment rates, reducing your lump sum by ~23%. This gets Ford out of future pension obligations, and they pocket the 23% in the process. Plan smart folks.
There is a good chance they will freeze it. in 2018/18 timeframe over 40% of the NA salaried workforce was within five years of retirement age. So, if they get that down below 15% they will pull the lever and freeze it. As to the amount of time or warning given Chrysler froze their pensions in 2015. they gave the employees a six-month warning.
The money you lose will go to JF & BF bonus. No thanks to that. I would not give them $0.25
I cannot say what Ford is going to do with the pension because IDK. However, actions speak louder than words, and since 2019, the company is targeting older workers. Not only that, it also changed the health benefits of the retirees. Is anybody still doubting that Ford is trying to reduce the pension's liabilities?
At the same time, most companies have already ridden of the pension programs by replacing them with 401K plans. Ford, who is a follower, not a leader, has not touched the pension program yet. However, with the sharp interest rises, there is an unique opportunity to convert the Ford pension into 401K plans and save a lot of money for the company. What are the chances that our "creative" accounting team, so willing to go beyond the standards to prop up the company's finances, is not eyeballing the pension plan as it is today?
Most of older workers know that the change in the interest rates will impact the lump sum amount, but wrongly believe that it would not affect them if they choose the monthly payment. Normally they would be right, but Ford has the opportunity to do a "lump sum" payment conversion to 401K plans, which will impact all workers. In other words, even the people thinking to retire in the future with monthly payments are going to get a +20% reduction in their monies.
So there you go. Are you willing to take a chance that Ford is going to do the right thing? Are you going to try to weather the outsourcing winds in the company, the targeted lay offs, to get maybe a couple of years more of salary? Or are you going to retire with a lump sum this year and keep your pension money?
The only change coming is the interest rate for the lump sum.
Honestly Ford is one of few companies that kept pension program unchanged and fully funded, for those still eligible.
The interest rate adjustment for 2023 pensions that comes out in 2 weeks should catch people's attention, but let's float this rumor into November, just in case.
Word on the street?? More like just making up and pulling rumors out of your backside for nothing more than trolling purposes…..
What are the details?
Not true
We need some details please.
I have heard the same but when is info coming out and where? Need to review in order to make a decision.