Even with the minimal bump in stock price from the layoff news, most people must be in red to blood red performance.
Thanks M&M boys!
10 replies (most recent on top)
I have not done the GESPP for decades at this point. I do get options and they are now worth nothing - were at one point worth $200k and I was hoping to fund college tuitions with that. Not anymore!
Stock price will likely never recover, even after the HC split. Sell now and collect some cash.
I'm keeping mine until I am issued shares of spinco.
Regarding the lump sum -- that's the primary reason I retired last year, a few months before I turned 65. 3M's plan complies with some US federal guidelines that are (I believe) related to ERISA and Pension Benefit Guarantee. The lump sum calculation includes an interest rate. It's similar to going to the bank and telling them "I want to borrow for a home but I want the monthly payment to be X.X for 20 years - how much can I borrow?" The underlying assumption is that if interest rates are higher, the present value of the future pension payments (the lump sum in exchange for your monthly pension, based on your age and life expectancy of the population) is LOWER. We all know what US interest rates have done over the past few months! 3M uses the posted interest rate in November to calculate the lump sum payments for retirees for the followiing year. Thankfully I found out about this from a number of co-workers last year; my personal situation made the lump sum a much better option.
https://www.forbes.com/sites/leonlabrecque/2022/08/09/inflation-and-pension-lump-sums-timing-is-everything/
To Pension Lump Sum, it is calculated using IRS rule 417(e) for the previous year. If the interest rate is low, the lump sum is adjusted up in the following year.
2021 was low, so 2022 lump sum pension increased.
However, 2022 interest rates, higher, therefore, 2023 lump sum pension decreases.
Sadly, this means there was a benefit in leaving in 2022, versus the incremental salary gained through staying into 2023.
Sort of off topic, but closely related.
Pension lump sum is way down.
Calculator August 2022 $973,622.16
Calculator April 2023 $710,743.37
Blood red. Nuff said.
Stopped buying it. Isn't worth it. With the discount, I'm still down. Bad leadership has cost me a bunch of money.
Stopped buying last year. Waiting for all my shares to get past the 1 year hold period and I’m dumping. The only thing worth holding for is the dividend, but that’ll be cut once the spin happens.
mine is in the negative -40% to -50% region
MR suc.ks. he is good at destroying shareholder value