The lump sum goes way, way down in January 2023.
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What the last poster said is correct. You will be working for free for the next few years if you are retirement eligible and do not go this year due to lower lump sum in January.
Yes, if you have your 30 years, retire this year. If you stay another year or two, you will be working for free. Don't stick around and get stuck with a smaller lump sum.
Ford has massive pension liabilities that suppress salary growth and the companies development. If only there was a way to shave it off? And one that guarantees Bill stays in power? idk
Can confirm this is true - was let go recently and when I talked to a financial guy, he went out of his way to tell me it was a wise decision.
Ford resets the pension value estimate every year in September & October time frame. Pension values work the opposite of Interest rates. Rates go down, pension value goes up; rates go up, pension value goes down. Rates have risen two or three times since last October, so pension values will be less this year.
The other thing to consider is Fords future- how much longer do you think it will be it’s own free standing company and not merge or get absorbed by bankruptcy in the next 5 to 10 years? Neighbors of mine worked at GM during their 2007 and 2008 bankruptcy, and he lost his pension. Something to think about…
Man I'm reading this and thinking I have my b-m of a 401K three year vesting bullsht and my salary has to pay for these old pensions im fckd...
The reason is that Ford only allows retirement dates to be the first of the month, so you are wrong. You must retire Dec 1st, or you lose. You will be shocked how much money is at stake. Rates will be published by mid September.
I have confirmed with Ford HR and financial advisor: you need to retire by Nov 30 and commence lump sum distribution on Dec 1, to receive current rates. The rate adjustment will be made in the online pension calculator late Sept.
I've discussed this with my financial advisor but not confirmed with HR. My financial advisor who is very familiar with Ford and other OEM pension and 401K plans advised you just need to retire in 2022 - he did not indicate it had to be by December 1. Again I have not confirmed with HR but the main point is yes, if you're considering retirement and taking the lump sum pension option, do it this year.
Agree that last day worked needs to be before December 1, but I don't agree about November 31!
The new rates for lump sum kick in on Dec. 1. These new rates will be known later this year (Sept./Oct.) in order to see the impact on your lump sum. If you want to max out you need to retire before Dec.1. You have up until Nov. 31 using the current rates. Keep an eye on it!
I believe the lump sum will be far less than it was in 2018. In fact if you are let go soon you will come very close to working the last four years for free.