Age 51. 20 years under NCR Pension. Would collect approx $1500 a month starting 2026. Do I take the pension buyout or let it ride and hope it still exists in 2026 ? Or take the lump sum payout since the world might end Dec 21, 2012 ?
Received my offer. It is approximately 2/3 of what I expected based on current government and corporate bonds. Very disappointing. I thought they might at least make a fair offer based on the recommendations of the Pension Benefit Guaranty Corporation. That is what GM did. It seemed more fair. If you notice, they did not include any calculation information in any of the mailed offer information or on the website. Do you think this was intentional?!? I called in, and Fidelity said they could mail it to me if requested, which I did.
I hope everyone does their homework to see what a fair offer should be and,or consult a financial advisor to see what they say about how fair it is. I am afraid they may not get many takers based on these low-ball offers.
Agree 100%, very low ball offers. NCR would never do anything fair or in the good side of former employees. I hope no one takes the offer and keep making them fund the pension fund. They want to get away cheap or hand it off to the gov't. The gov't guarantees payments up to about $5000 a month, so even if NCR goes bankrupt and gives the pension to the gov't, great majority will be ok .... don't take the offer ....
There are many variables to look at. Look at the Discounted Present value Calculator and the Future value calculator. CD's you can roll the money into and their rates. 5-yr CD, etc - IRA accounts to avoid taxes...
You need to calculate based on what you will receive now and the investment value at retirement. Look at the amount you will get each month and see if you'll get more from NCR(if not gone) and what you would get if you started drawing from your investment. Not an easy thing based on trying to guess what will happen in the future. In the end it will be what you think is best for you and your family. Don't hesitate to see if you can find and investment person that will give you an analysis for free or very low cost.I use Fidelity for mine and I think when I retired and I think they did it for free, another if in your area is the Mutual Fund store. They both will manage your account for a % fee based on the amount in the account. So both have the incentive to make money for you so they can also make more money.
My plan was to take it as soon as I could even at a discount and get as much as I could for as long as I could. Be better to wait?, probably yes but we are talking NCR?? can they be trusted to follow through with their promises???? My advice make a decission and be happy with it.