Retirement?
I don’t know if I should retire from 3M or continue into SpinCo. I have my “tentative” SpinCo email. I love my job but I’m of the age I could retire. Financially is why I continue working.
Has anyone have insight for retirement benefits with SpinCo?
Please don’t speculate, I’m in a dilemma! Thank you.
I worked for 3M-retirement is great-if your in your 60’s you don’t need the workplace stress anymore & surprisingly with the 3M pension & SS you will be set financially
In the likely event that spinco will be led by an ex GE bean counter accountant, one can safely expect that benefits will be much lower compared to remainco. He will push hard to keep costs low and hence start with the employees first....as they say in GE...go lean and mean!
This person only cares about numbers and does not get the value of R&D, company culture, or loyalty, some of the things that made 3M such a industrial powerhouse and a great place a work.
Laid off from 3M 6 months ago at age 55. Portfolio 1, so I lucked out with the timing as lump sum was "unreduced". No idea about spinco, but 3M RMSA was >$29K. Also, once I become Medicare eligible 3M is supposed to add another $2-3K/per year into my HRA account for the rest of my days (assuming company does not change this benefit). You should ask spinco if this benefit will continue.
If someone age 55+ chooses not to retire from 3M and goes to Spinco, I'm assuming they lose their RMSA. Can anyone confirm that? For long time employees that could be more than $25,000 of medical savings lost.
I am also a long time 3Mer and designated for SpinCo. I am Portfolio I and have the means to retire. My original plan was to work a year or two longer. I looked at the lump sum calculations late last year and decided working a few more years was right for me. Many of my friends jumped at the lump sum last Fall.
There are things about going to SpinCo that appeal to me. The people I work with are mostly fantastic. I also like my job. The change part doesn’t bother me. It makes no difference to me if I officially retire as a 3Mer or a Spinner when my time to retire comes.
The lack of information coming out around The Spin does concerns me. Seems like the process is delayed. It was clearly stated that successful spins are completed in a shorter 1-1.5 year timeline. I hope this happens. However staying with 3M RemainCo also leads to many concerns.
As to your compensation at SpinCo - my assumptions:
Job title and function same
Base pay same
AIP similar (not a fan BTW)
Healthcare similar
No Pension - the day you spin is the day that benefit stops growing.
401K with increased match like newer hires.
If I were you I would buckle up and go through the spin. Take this time to plan for your exit. Research retirement. Allow the information to trickle out. Maximize your current retirement benefits. If bad news comes out, retire or work somewhere else for a couple years.
Personally, join SpinCo. It's likely to offer NO pension and only 401k match but then your pension would still be managed under 3M (you don't lose anything) - that is until the next Mike (Vale) gets his machete out and carves up remain-co into 4 or 5 pieces.
The lump sum may be better in a few years if inflation calm back down to 3 or under.
I agree with the poster on severance. Hang around, do your best if you enjoy your team, and then volunteer when they came around for cuts in 2 years or so.
Like the other poster, I retired so that I could lock in my pension before the lump sum got a 20 percent haircut.
And, if you can retire completely, just relax. Have coffee every morn on the porch and do any community activities you like.
Haven't had time to research much but does 3M have a vibrant retirees group in the east metro like tartan park and 3M Club were for employees in the 80s and 90s???
Stay for the severance, if nothing else. But it wouldn't be a bad idea to get your resume updated and circulated if you can't afford to retire yet.
As an outsider that always considered 3M a reputable company, it's sad to see what's happening there. Ultimately, it's politics (imo).
I don't think there is enough info about Spinco. Personally, I retired in 2022 to take advantage of the lump sum payout because I didn't feel good about the 3M pension. It could be OK, it could get sold to an insurance company, it could go into PGBC. I also did not want to be tied to 3M decisions for the remainder of my life. There are other reasons as well as to why I preferred lump sum versus montlhy payouts, primarily that I think I could do a better job of managing my own finances. Not that I'm the brightest bulb, but compared to these bozos, I'm confident I can do better. I do not miss the cluster F at 3M at all.
If you are happy with your job, I would lean towards staying. If you have pride in the years at 3M prior to it falling to $hit, then there is value in saying "I retired from 3M." If the Sh-t show is so bad you'd rather not say that, then go with Spinco. If you are a short timer, you'll be fine imo. It's good you have options! Others don't.