Thread regarding Intel Corp. layoffs

Well you guys are some of the stupid people out there I audit my accounts quarterly and knew about this years ago. Obviously you people never used a computer and....I dont know logged on to check your accounts. And they wonder why people take advantage of old people.

Gordon Moore was a force in establishing 12.5% annual Intel contributions into Intel's retirement plan. Going further, Intel had a minimum pension plan, that is, if the fund didn't grow sufficiently over time relative to your pay and years in service, there was a safety net that would kick in. When Craig barrett dropped Intel's contribution gradually to closer to 6%, then this safety net started kicking in. More recently, BK raided this promise by freezing the minimum pension plan a few years ago and giving Intel $1B back on its balance sheet. So annually, Intel contributes 5% to your SERP, but then as it does, your minimum pension guarantee plan drops by a similar amount, creating an illusion of a contribution when in fact the original benefit at hire is being decreased at a rate similar to the most recent Intel contribution. BK handled this deceptively, and broke a trust with employees that Gordon Moore felt was important.

Good piece

fwiw ... here's a a link - http://retireby40.org/intel-gave-surprise/

@ndv - I would have agreed with you ... before I left. Seriously - the benefit is well hidden. I didn't know it was there. I don't even recall seeing a benefit statement about it on the 401k.com website when I was an employee, although I do remember some vague language in the T-Comp manual about a pension plan ... but I thought it only kicked in if for whatever reason my 401k was -0- and the profit sharing plan savings imploded somehow (like if I took a loan out against them).

And I just looked at my last paystub I generated when I left ... I only see "401k Deduction", "401k Bonus and Commission Deduction", "Dental before Tax" and "Health Savings Account" under the "Before Tax Deductions".

Considering you will get hit with a 10% penalty on top of income taxes if you claim the benefit before 59 1/2, it doesn't make sense to come out of the "After Tax Deductions" like SPP, Group Legal, STD, RID Award Offset and RSU withholdings.

I did the rollover of the funds to my IRA account instead of cashing out. But you can cash it out.

So maybe I do have dementia, but at least I will have money to spend :).

@kwn - yes, its the minimum pension plan, and I can tell you I never contributed to it, and I thought I knew everything under the 401k.com website. For all of my years, there wasn't a single line-item on my paystub indicating "pension" or otherwise - either under the old Circuit MyPaystub, or the new Workplace (?) one which they cut over to earlier this year.

I'd tell you where exactly under the website, but now I'm not an employee the 'look' of the website has changed from what I remember. I see two categories at the top level - "Retirement Savings" which was my self-funded 401k + the Profit Sharing plan credited every February, then a "Intel Minimum Pension Plan".

I didn't know about it until I got a mailed notice from Intel/Fidelity providing a legally required annual pension fund statement, along with a summary of my current benefit. My reaction was whaaa?

"there's an Intel Pension Plan!" If this is the minimum pension plan then employees contribute to it, not Intel. If not, can you please post where on the Fidelity site it is located? Thanks!

Yup true story there is a pension for those hired before 2011