Someone mentioned that pension credits will stop accruing in about six months, which could remove one of the reasons Medtronic used VERPs in the past. If that's correct, does that mean future workforce reductions are more likely to come through RIFs rather than voluntary retirement packages? Anyone familiar with how the pension change affects this?
7 replies (most recent on top)
@tc sorry I didn't see anything related to pensions. I'm on long term sick leave and I have not got access to the company portal. I did email askhr and they never got back to me.
Can you tell me what is happening to pensions ?.
All, go read the announcement about the freeze and impact to retirement and 401k.
After the freeze if you stay don't you get the 401k matcher kicker?
Is this about all pensions stopping. Even for UK MDT employees? How does that work? Isnt MDT supposed to add to the pension - that's how triple lock work for UK employees?
Anyone have thoughts on what this will do to long-term older employees at the organization?
My boss and several others on her level are probably near retirement age. Wondering if this will be opening up so promotion opportunities if I stick around
The Medtronic Retirement Plan will be permanently frozen on April 30, 2027.
Credits Stop Permentantly: After April 30, 2027, both Final Average Pay (FAP) service years and Personal Pension Account (PPA) pay credits will completely stop accumulating.
If you can voluntarily Do Not Leave Before April 30, 2027. Setting a resignation or retirement date in May 2027 ensures you capture every final penny of your 2026–2027 pension accruals and your full 401(k) company matches before the window closes forever
Because the pension will be frozen, offering extra pension credits is no longer viable so future workforce reductions are much more likely to come through direct Reductions in Force (RIFs/Layoffs) rather than voluntary retirement packages. RIF packages may include a few months of pay and accrue 2 additional weeks of pay for every full year of service.
Sadly It is unlikely there will be another VERP. RIFs yes…VERPs no