Anyone know what the requirements are to get bridged to 55 on the pension? I’ve heard anyone over 50 is bridged, and I’ve also heard age + years of service must = 70 or more to get bridged.
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If you go look up the plan documents for the pension you will find all of the early retirement scenarios. I read them several years ago and downloaded copies when I got my notice last year. They make it all very clear. The severance package also contains the details. The PepsiCo retirement center through Fidelity might be able to explain things. They were all very helpful and kind to me when I started the lump sum distribution process. When you decide to pull the trigger they will run a scenario for you that sort of locks in your options/numbers. They also explained how the payout is based on interest rates on certain dates and can change based on precise dates. Mine changed downward very slightly so I was quite relieved to finally have the actual number. The interest rate date calculation can make a big difference in the scenario results.
Bridging according to my pension docs takes away 4% per year before 55, not 12% as someone posted. Could depend you your division though, maybe.
Okay, everyone, go easy on me because I don't understand this stuff very well. I am over the age of 55, have been designated as "special early retirement" and took the VRP. I haven't drawn anything from retirement because I'm still on severance. This thread is saying that I'm allowed to and that there is a lump sum. Can someone please explain? Am I leaving money to sit when I can actually take it and invest it?
Bridging might be the worst thing because they take away 12% from your lump sum for each year of bridge (for example, 24% less lump sum for a 53 year old at retirement date). Also, portion of the income below the age 55 will be not be eligible for IRA rollover and you will be taxed during the year you were paid! Bridging might be only exciting for someone who will be turning 55 during severance period!
I know someone was offered special early retirement who is 51 with 19 years of service. So, please do not post comments about special early retirement without complete knowledge of this year’s package!
I’m the one with the frozen pension and 27 years. Came from PepsiAmericas system. Pension was froze after Pepsi bought the bottlers. Working on the beverages side now.
My retirement plan is 50% match up to 6% in my 401k. In addition to that, I receive an Automatic Retirement Contribution (ARC) based on age plus years of service. It tops out at Pepsi paying 9% of your pay annually into your 401k. No pension accrual for me since the freeze in the late 90s which basically gives me $50/month in retirement payout.
For the person with 27 years, what role are you in? I got let go with less than 20 years and draw almost $3k month on my pension and I wasn't even an L10. There is no bridge. Do a scenario on Fidelity and you'll get you answers.
Can someone explain Pension bridging ?
I’ve been here for 27 years and have almost no pension. It was frozen at $50/month in the 90s. I had no idea how bad Pepsi can stick it to you until my friends were recently discussing their 401k plus pensions.
There is a partial bridge called Special Early Retirement. I know people who were laid off under this. Applies to people over 50 with at least 15 years of service. There are restrictions though.
I don’t think they bridge anymore. If you turn 55 in your severance pay period yes but if not no.