Jump to content
  • Custom Search


autoworker2

BUYOUT...When Do We Leave??

Recommended Posts

Questions Questions.....

 

This may or may not help with one repeated question, "yes" your age will reduce your payable monthly LIB percentage.

 

For a simplified explanation, if a member is calculated to receive $100.00 a month for their LIB and this member is 59 years old. The $100.00 LIB check will be issued for $80.80. The member will only receive a check for $100.00 of the calculated LIB if the member is 62 or older years of age.

 

A member with "85" points and wishes to start receiving LIB payments, the member is 60 years old with 25 years of service which satisfies the 85 point requirement.

 

Being age 60, the member will be reduced to $86.70 for every $100.00 of LIB. If calculated at "my" LIB, 25 years of service will come to $1329.50. With the age reduction this will produce the payable amount to $1152.67. Then there is the bridge benefit of "approximately" $1200.00 a month that will be paid till the member reaches 62 years of age. This will be a total payable monthly benefit of $2352.67. Remember at age 62 the bridge benefit automatically drops. Then if a member applies for S.S. benefits at age 62 or so, the S.S. benefit is reduced because of the age of the member. In most cases the S.S. reduced benefit will not equal the bridge benefit that was dropped. Of course, the $2352.67 is before taxes.

 

For those that were under the impression that any of the rumor`s were true, just do the math and things will look real different from the "I heard" - "they said" accountants. Then one thing for sure the only way a member will receive full calculated LIB is to have "30" years of credited service and be celebrating their "62" birthday.

 

One last thing, "yes" there is a long list of deductions Ford will calculate and... reduce any retirement incentive benefit prior to depositing. With no other deductions then taxes, a $60.000.00 retirement incentive check will look closer to $41,617.52.  

 

Hope this helps my friends and members at CAP.  

 

1931467076_RegularEarly.thumb.png.c6dfc6a1827d634ce6faf97b94df7020.png 

 

 

 

Edited by Decker

Share this post


Link to post
Share on other sites

Ford pension does not pay much per month.Then comes a reduction  when you reach social security age at 62.In the past,what made being a loyal Ford employee beneficial was the health care you could receive once you retire.Now once you retire,your health care is administered by the union {gives you a real confident feeling?} VEBA fund.Once you turn 65 you apply for medicare and VEBA becomes a secondary payer.In the long run,VEBA may save you from having to purchase additional insurance to supplement medicare for things like dental,vision,prescription.Welcome to the understanding that the retirees ,which if you take the buyout you will soon be,have been paying for the contract ever since the good old,concessionary days, of Bob King.Dont expect the new,fresh workers who Ford hires to replace you,to stand up for you in future contracts.Everyone is in a different financial situation and you have to look over all the details very carefully.I am wondering what is the current co-insurance payment per month of having VEBA?Is that amount expected to increase with more people retiring?Its not a question of 'will I get sick' its a matter on 'when and how'.

Share this post


Link to post
Share on other sites

Not at CAP. The agreement can be accepted, paperwork signed and it still would be a "TBD" situation..... on the get outta jail date. 

Share this post


Link to post
Share on other sites

From the company bulletin: 

"In some instances, STEP separations and SRI retirements may be delayed based on the operating needs of the employee's work stations."

 

My immediate supervisor has told me I will be one of those held beyond April 1st.

Share this post


Link to post
Share on other sites
On 1/10/2020 at 9:02 AM, Decker said:

Questions Questions.....

 

This may or may not help with one repeated question, "yes" your age will reduce your payable monthly LIB percentage.

 

For a simplified explanation, if a member is calculated to receive $100.00 a month for their LIB and this member is 59 years old. The $100.00 LIB check will be issued for $80.80. The member will only receive a check for $100.00 of the calculated LIB if the member is 62 or older years of age.

 

A member with "85" points and wishes to start receiving LIB payments, the member is 60 years old with 25 years of service which satisfies the 85 point requirement.

 

Being age 60, the member will be reduced to $86.70 for every $100.00 of LIB. If calculated at "my" LIB, 25 years of service will come to $1329.50. With the age reduction this will produce the payable amount to $1152.67. Then there is the bridge benefit of "approximately" $1200.00 a month that will be paid till the member reaches 62 years of age. This will be a total payable monthly benefit of $2352.67. Remember at age 62 the bridge benefit automatically drops. Then if a member applies for S.S. benefits at age 62 or so, the S.S. benefit is reduced because of the age of the member. In most cases the S.S. reduced benefit will not equal the bridge benefit that was dropped. Of course, the $2352.67 is before taxes.

 

For those that were under the impression that any of the rumor`s were true, just do the math and things will look real different from the "I heard" - "they said" accountants. Then one thing for sure the only way a member will receive full calculated LIB is to have "30" years of credited service and be celebrating their "62" birthday.

 

One last thing, "yes" there is a long list of deductions Ford will calculate and... reduce any retirement incentive benefit prior to depositing. With no other deductions then taxes, a $60.000.00 retirement incentive check will look closer to $41,617.52.  

 

Hope this helps my friends and members at CAP.  

 

1931467076_RegularEarly.thumb.png.c6dfc6a1827d634ce6faf97b94df7020.png 

 

If you 30 years there is no penalty from what I was told by the benefits rep.

 

 

Edited by cecilmeyer
misspell

Share this post


Link to post
Share on other sites

"If you 30 years there is no penalty from what I was told by the benefits rep."

 

30 years of service times LIB code "C" which is $53.20 equals $1596.00 a month before taxes. You will receive 100% of the $1596.00 LIB if you are 62 years of age.  

 

At 58 years of age your code "C" LIB monthly check will be reduced (not penalized) by 24.8% for a monthly total of $1200.19.

 

Now add a ball park figure of your bridge benefit of $1200.00 to the LIB of $1200.19 and until you reach 62 years of age your monthly check will look like this $2400.19. The month after you reach 62 years of age that will be the first month your monthly Ford check will look like this $1200.19

 

Then if you apply for S.S. at 62 years of age you will see the next group of reductions. In my case 66 and 4 months is the age I will need to be if I want full S.S. benefit per month. At 62 and 1 month I will lose just over $900 a month for ever from the full S.S. monthly benefit.

 

There are no listed "penalties", just requirements that have to be met to get the 100% LIB. For every lack of meeting the requirement there is a reduction. 

 

Both Thomas and Sergio would point to page #228 in volume II of the 2015 master agreement also, good luck Cecil. 

Edited by Decker

Share this post


Link to post
Share on other sites

LIB is reduced again if you have a spouse for the widows benefit.  Also, don’t they take out a monthly copay for your VEBA?  How much is the VEBA copay?

Share this post


Link to post
Share on other sites

Yes taxes and spouse survivor benefit will be deducted from your monthly check. If you select a 50% spouse survivor benefit that is separated deduction listed on your check every month for about $300. Note to payer of spouse survivor deductions... there is no refund if your spouse just happens to go first. 

 

VEBA copays vary with coverage options. Ford retiree`s are listed in VEBA as "protected". This allows for certain options like a one time $20 copay per prescription for a year if you choose a certain provider. I think that $20 would be a payroll deduction process. 

 

Members have been kept in the dark by those that represent the same members that pay for the representatives retirement plan and retirement health care plan with no reductions and no copays for so long. Then there are the retired members that talk that "I" get a $3800 a month pension check and "I" get a $3200 a month from S.S. check also for such a long time that the average member can`t figure out what is the payout or coverage. But its right there in black and white. 

 

Then the bullshit of "if you work thirty years you get a full pension" or "after thirty years you should be able to retire" or "the after I get thirty I will not need that much so I`m retiring".... after doing a term as secretary/treasurer during the first round of, why they call them buy outs beats me, retirement incentives and severance agreements I didn`t have one day after the checks were received that 10, 20 or more members were there asking questions and making statements like, "no one said I couldn`t change my mind"... "why can`t I pay back the money (some even said through payroll deduction) and come back to work?" and one of the best was "how do I reapply as an entry level employee?" Now there was the happy, successfully retired members but dam they never darken my office door. Or for that matter were never seen at the hall again. I`d run into them at different public places having dinner or shopping. (there were a few I bumped into while shopping that asked if I`d like a shopping cart...) 

 

People this shit is real, it is in and has been in the volume II for a long time. If someone says there isn`t a penalty they are correct because its not a penalty it is a reduction in your monthly benefit check. The reductions are deduction just like taxes they are pulled before you even see the check. Reduction are unlike taxes in that taxes will reduce in time, reductions stay the same for the rest of your life. 

 

I wish all ready to jump... all the luck and happiness retirement should bring. But, when time comes to pull the cord I hope their planning parachute is in great condition. 

Edited by Decker

Share this post


Link to post
Share on other sites

Wow!  this is very informative!  Let me get this right Decker, to receive 100% retirement benefits you have to have 62 years old and 30 years of service?  I was planning on retiring at the age of 56 and 31 years of service.  But i was counting at $3,077.84 , is that wrong?  

Your Pension Benefit  excluding  Monthly Supplements

Monthly Supplement

$980.19

$2,097.65

Share this post


Link to post
Share on other sites

February 29th, 2020 is the big day! Surprised at the people getting cold feet saying they'll  do another 4 years. Sure, things will change but I'm ready. Everyone has an expiration date. If I'm blessed I'll live another 20 years. Time to go and enjoy life!

Share this post


Link to post
Share on other sites
15 hours ago, chassisgroupleader said:

Wow!  this is very informative!  Let me get this right Decker, to receive 100% retirement benefits you have to have 62 years old and 30 years of service?  I was planning on retiring at the age of 56 and 31 years of service.  But i was counting at $3,077.84 , is that wrong?  

Your Pension Benefit  excluding  Monthly Supplements

Monthly Supplement

$980.19

$2,097.65

 

If you have 31 years then multiply that by LIB code C which is 53.80 (my LIB code as listed in the 2015 agreement, group leaders might be a higher code possibly) that would equal what your pension benefit would be if you were to fulfill the age requirement. My full pension at 31 years would be a pension benefit of $1667.80 at 62. Now if you look at the age requirement chart for age 56, the column under Percentage of Life Income Payable you will see the percentage of payable pension benefit is 63.5 percent. With my $1667.80 for age 62, it is then reduced to $1058.54 at age 56. Now my $1667.80 is based on my hourly rate and will be slightly different from all other LIB code`s because of a different hourly rates. Your $980.19 and my $1058.54 is about $68 different that is nothing more than different rates of pay causing that slight difference. But there is the reason your $98019 is 63.5% of your full pension benefit. 

   

If the supplement (bridge benefit) has raised to $2097.65 (from my generalized $1200 estimate) that is great. But if your figure is correct and I have no reason to think or assume it is not, there are to things to realize. First the deductions on the bridge and pension check of $3077.80 would be reduced by $861,56 (28% total) for a total tax deduction State, Federal, FICA and all the other taxes. Which would make the monthly combination benefit check looking more like $2216.28. In the event you elect to do a survivors benefit coverage at the 50% rate the combined monthly check would look more like this $1916.28.  

 

On your 62 birthday that will be your last month for the $2097.65 part of your monthly gross benefit amount. You will receive the very next month your first pension check at $980.19 gross. Now if you can get into a total tax rate of 20% on your 62 birthday (good luck with that) your tax deduction will be $196.03. The first pension check after your 62 birthday would look like $ 784.16, 

 

Then there is Social Security, full benefit has an age requirements also. In my situation 66 years and 4 months is the only way I will receive full benefit checks. If I elected to sign up for social security at age 63, as calculated on last weeks letter from S.S. Administration I would see a $780 (approx.) a month reduction from my full benefit at 66 and 4 months. Why I say "my" benefit because almost every member has a different annual earnings total and that is averaged in the last 7 years before applying for social security and that income average is what social security factors when calculating everyone's monthly benefit check. If you only have claimed/taxable income of a Ford pension/bridge benefit income from 56 to 62 that will reduce your current estimated "full" social security payable benefit check. Then applying for social security at age 62 your social security payable benefit will be reduced again.

 

These reductions in your social security benefit check will not in most cases equal your bridge benefit that stopped at 62 and 1 month. "If" in some far reaching long shot the social security and pension checks gets close to reaching the pension/bridge benefit check for $3077 a month (it won`t) The combined total once a month of $1916 take home pay... might take a little time to adjust too, for some members.     

 

Oh... the $784.16 pension benefit check will be reduced for survivor benefit coverage and VEBA copays, also. 

 

https://uaw.org/uaw-auto-bargaining/fordcontract/

scroll down to this

 "CLICK HERE FOR THE 2019 CHANGED PAGES BOOK"

Then scroll down to the volume II page "39 D" which is the book page "554" here you will find LIB codes that base hourly classification rates determine. Even with this information some guessing will need to be done. Because as always this is a PDF that isn`t complete. Wonder when we will receive an actual hard copy, 2022???

Edited by Decker

Share this post


Link to post
Share on other sites

so how much do you get if Ford goes bankrupt and sells off the company within the next 10yr, don't rely on UAW or Ford for your future. Your retirement pension is about as secure as the dues you pay.

 

STEP, will signup Jan 27 and the window closes Feb 28. You can sign away your chance to revoke and leave before Feb 28.. It doesn't matter what manpower issues there is, they have to let you go before April 1st. I got the paperwork to back this statement.

 

SIR ya'll screwed, Depending on your age year hire dates etc you might not get out till Nov 2021 but no earlier then April 1st.

Share this post


Link to post
Share on other sites

^

Yep. Of course, if we get involved in a Middle East war and the stock market crashes as a result anyone with a pension, stock, bonds, or money in the bank is screwed as well.

 

And if a general war breaks out between the U.S, Russia and China the nukes will fly and none of this will matter anyway.

 

Have a nice day. :)

Share this post


Link to post
Share on other sites
12 hours ago, cal50 said:

Eat right , exercise , die anyway.

 

 

Death.... the ultimate "reduction" in benefits  

Share this post


Link to post
Share on other sites

I lost count how many people died at work or that just retired and never got a single retirement check.

 

The house always wins.

 

 

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×