TAKE THE $140,000.00 AND RUN

[40anout]

At my age (52) I always taught that I would have to stay working for 40 years since I hired in at age 19. I am just too young to retire or so I thought.

Now comes Ford with a simple but very complex offer. Take a buyout offer of $ 140000.00, keep your full pension, but drop your health insurance after six months. Interesting to say the least. Everyone says don’t do it, but with the climate of the auto industry and the upcoming 2007 contract talks lets all take a close look at this package.

First off I can guarantee that all of us they stay at Ford will lose some kind of health care benefits next contract. Maybe even the retiree’s will lose more benefits, as these folks are a major burden on Fords health care costs. Not to mention a pay reduction. This contract is going to get nasty for sure.

Second many of you don’t understand retirement at all. Right now (and this age may change) at age 62 and 1 month Medicare will become your primary health care and Ford will be your secondary insurance. In other words you not only lose half your pension to social security you lose your primary health care also.

Everyone with over 30 years seniority should watch the DVD Work or Retire available at your plants HR department for free. This DVD explains everything in depth.

Third the $ 140000.00 question?

$ 140000.00 will net right around $ 92000.00 take home. Not a bad chunk of change. Plus depending on your vacation ellibillity date you will get at least 200 hours of vacation pay. ($5600.00 gross) making your full take home at around $ 95000.00.

My plan is as follows. Keep back $ 15000.00 for yourself.

Take the remaining $ 80000.00 and invest it in a no load mutual fund. $ 80000.00 nets $ 6400.00 in interest a year after taxes at 10% based on a 10-year investment. Contact the Mutual Fund Store. Considering that I am 52 I would want a 10-year investment plan.

A good health care insurance plan for you and your spouse with the benefits that we enjoy from Ford will run depending on deductibles between $ 300.00 and $ 600.00 a month. Contact AARP, Aetna, Kaiser or United Health Care.

Lets just use an average of $ 500.00 a month (everyone’s premium will be different). That comes to $ 6000.00 a year. The interest on your investment will cover the insurance premium. All of my figures include deducted taxes.

This fellow Ford workers is a no brainier.

Investigate for yourselves. Do yourself a favor talk to a financial expert and your personal insurance agent about this matter.

Then take the $ 140000.00 and run After 10 years you will still have your $ 80000.00 that you started with.

[mtplifer]

I agree, unfortunatly alot of oldtimers are stubborn and unable to see outside the box. They are afraid to leave. They love coming in and do a couple of hours worth of work and bullshit the rest of the time. Also many,many,many of them do not want to retire and have to sit around with the wife all day.

[CSMJ]

At my age (52) I always taught that I would have to stay working for 40 years since I hired in at age 19. I am just too young to retire or so I thought.

Now comes Ford with a simple but very complex offer. Take a buyout offer of $ 140000.00, keep your full pension, but drop your health insurance after six months. Interesting to say the least. Everyone says don’t do it, but with the climate of the auto industry and the upcoming 2007 contract talks lets all take a close look at this package.

First off I can guarantee that all of us they stay at Ford will lose some kind of health care benefits next contract. Maybe even the retiree’s will lose more benefits, as these folks are a major burden on Fords health care costs. Not to mention a pay reduction. This contract is going to get nasty for sure.

Second many of you don’t understand retirement at all. Right now (and this age may change) at age 62 and 1 month Medicare will become your primary health care and Ford will be your secondary insurance. In other words you not only lose half your pension to social security you lose your primary health care also.

Everyone with over 30 years seniority should watch the DVD Work or Retire available at your plants HR department for free. This DVD explains everything in depth.

Third the $ 140000.00 question?

$ 140000.00 will net right around $ 92000.00 take home. Not a bad chunk of change. Plus depending on your vacation ellibillity date you will get at least 200 hours of vacation pay. ($5600.00 gross) making your full take home at around $ 95000.00.

My plan is as follows. Keep back $ 15000.00 for yourself.

Take the remaining $ 80000.00 and invest it in a no load mutual fund. $ 80000.00 nets $ 6400.00 in interest a year after taxes at 10% based on a 10-year investment. Contact the Mutual Fund Store. Considering that I am 52 I would want a 10-year investment plan.

A good health care insurance plan for you and your spouse with the benefits that we enjoy from Ford will run depending on deductibles between $ 300.00 and $ 600.00 a month. Contact AARP, Aetna, Kaiser or United Health Care.

Lets just use an average of $ 500.00 a month (everyone’s premium will be different). That comes to $ 6000.00 a year. The interest on your investment will cover the insurance premium. All of my figures include deducted taxes.

This fellow Ford workers is a no brainier.

Investigate for yourselves. Do yourself a favor talk to a financial expert and your personal insurance agent about this matter.

Then take the $ 140000.00 and run After 10 years you will still have your $ 80000.00 that you started with.

Get private insurance??WHAT?? And when you go in the hospital they will not renew your policy and you will have no insurance, that's how it works!!! It's like someone with 10 DUI'S you will not get anyone to cover you for car insurance unless you pay $10,000 deductible, healthcare is even worse.

As far as your retirement if you get $3,000 a month and then go on S.S. you don't take a cut you get the same amount you knew going in that when S.S kicks in your Ford pension drops and S.S. makes it up, if Ford paid you guys your full pension and S.S. they would have been broke along tiime ago!!

But retires in general would rather Ford cut the workers pay in half then take a cut in your pension!!That's all the retires want is more $$ on our backs. Remember it was your generation of Ford worker that took THE LARGEST CONCESSIONS IN HUMAN HISTORY IN THE 80'S to save your jobs then so now it's our turn and you guys are telling us that were weak, well we just want to keep as many jobs as we can just like you did in the 80's!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[sun3]

I agree, unfortunatly alot of oldtimers are stubborn and unable to see outside the box. They are afraid to leave. They love coming in and do a couple of hours worth of work and bullshit the rest of the time. Also many,many,many of them do not want to retire and have to sit around with the wife all day.

Maybe they just like the jobs they have! How can you lump them all together? They are the ones who fought to get you the perks you enjoy today. They actually worked, and worked bell to bell! It is a shame that the newbies didn't have a chance to work like that so they could appreciate what they have today. As for BSing all day---a lot of them could and do work circles around people like you. As for the personal relationships with their spouses, who are you to make such a comment????

[Carbon Can Kat]

At my age (52) I always taught that I would have to stay working for 40 years since I hired in at age 19. I am just too young to retire or so I thought.

Now comes Ford with a simple but very complex offer. Take a buyout offer of $ 140000.00, keep your full pension, but drop your health insurance after six months. Interesting to say the least. Everyone says don’t do it, but with the climate of the auto industry and the upcoming 2007 contract talks lets all take a close look at this package.

First off I can guarantee that all of us they stay at Ford will lose some kind of health care benefits next contract. Maybe even the retiree’s will lose more benefits, as these folks are a major burden on Fords health care costs. Not to mention a pay reduction. This contract is going to get nasty for sure.

Second many of you don’t understand retirement at all. Right now (and this age may change) at age 62 and 1 month Medicare will become your primary health care and Ford will be your secondary insurance. In other words you not only lose half your pension to social security you lose your primary health care also.

Everyone with over 30 years seniority should watch the DVD Work or Retire available at your plants HR department for free. This DVD explains everything in depth.

Third the $ 140000.00 question?

$ 140000.00 will net right around $ 92000.00 take home. Not a bad chunk of change. Plus depending on your vacation ellibillity date you will get at least 200 hours of vacation pay. ($5600.00 gross) making your full take home at around $ 95000.00.

My plan is as follows. Keep back $ 15000.00 for yourself.

Take the remaining $ 80000.00 and invest it in a no load mutual fund. $ 80000.00 nets $ 6400.00 in interest a year after taxes at 10% based on a 10-year investment. Contact the Mutual Fund Store. Considering that I am 52 I would want a 10-year investment plan.

A good health care insurance plan for you and your spouse with the benefits that we enjoy from Ford will run depending on deductibles between $ 300.00 and $ 600.00 a month. Contact AARP, Aetna, Kaiser or United Health Care.

Lets just use an average of $ 500.00 a month (everyone’s premium will be different). That comes to $ 6000.00 a year. The interest on your investment will cover the insurance premium. All of my figures include deducted taxes.

This fellow Ford workers is a no brainier.

Investigate for yourselves. Do yourself a favor talk to a financial expert and your personal insurance agent about this matter.

Then take the $ 140000.00 and run After 10 years you will still have your $ 80000.00 that you started with.

 

Great post the only thing that you need to look into is your vacation pay. When I signed up for the $140,000 we were told that you would get vacation due to you that is already on your check stub. For example my retirement started November 1 at age 49 and I have December vacation eligibility so I would get any remaining vacation pay I have until December 2006 but would not get the 200 hours in December 2006. If my effective retirement date was after December 1, 2006 then I would have gotten my 200 hours. I looked at it in terms that were easy for people to understand instead of dealing with the thousands of dollars figure which clouds your judgment. My analogy was I was going to give Ford ~$6.00 to get $140. The ratio is the same but because of the sums involved it lets you make a more informed decision.

 

For health insurance I have the option to pick it up through my wife's employer so taking the $140K was a no-brainer. Additionally I have job interview next week that has benefits better than or equal to what I had at Ford. Plus they automatically put 5% of your base pay into a 401K, also run by Fidelity, and will match up to 4% of your contributions. So if I was to contribute 6% of my pay with their contribution and match I would be at 15%. Work ten years get vested, be past the 59 1/2 age to draw out of 401K if neccesary, then draw a second pension with lifetime benfits again.

 

Thanks to Ford and the UAW for allowing me to step out and do something that I would have never of done if it wasn't for the plant closing in Atlanta. I was perfectly content to work another 6-10 years and not add anything to my monthly retirement except 401K contributions and interest. For those of you who don't know go look at your retirement plan, it used to be that you would gain extra monthly benefits the longer you stayed. That changed with the last contract so that if you got your 30 credited service years in before 2003 you would still accrue the additional ~$60 a month but if you got your 30 in during or after this contract your monthly benefit was based solely on those 30 years.

Edited November 6, 2006 by Carbon Can Kat

[sun3]

Great post the only thing that you need to look into is your vacation pay. When I signed up for the $140,000 we were told that you would get vacation due to you that is already on your check stub. For example my retirement started November 1 at age 49 and I have December vacation eligibility so I would get any remaining vacation pay I have until December 2006 but would not get the 200 hours in December 2006. If my effective retirement date was after December 1, 2006 then I would have gotten my 200 hours. I looked at it in terms that were easy for people to understand instead of dealing with the thousands of dollars figure which clouds your judgment. My analogy was I was going to give Ford ~$6.00 to get $140. The ratio is the same but because of the sums involved it lets you make a more informed decision.

 

For health insurance I have the option to pick it up through my wife's employer so taking the $140K was a no-brainer. Additionally I have job interview next week that has benefits better than or equal to what I had at Ford. Plus they automatically put 5% of your base pay into a 401K, also run by Fidelity, and will match up to 4% of your contributions. So if I was to contribute 6% of my pay with their contribution and match I would be at 15%. Work ten years get vested, be past the 59 1/2 age to draw out of 401K if neccesary, then draw a second pension with lifetime benfits again.

 

Thanks to Ford and the UAW for allowing me to step out and do something that I would have never of done if it wasn't for the plant closing in Atlanta. I was perfectly content to work another 6-10 years and not add anything to my monthly retirement except 401K contributions and interest. For those of you who don't know go look at your retirement plan, it used to be that you would gain extra monthly benefits the longer you stayed. That changed with the last contract so that if you got your 30 credited service years in before 2003 you would still accrue the additional ~$60 a month but if you got your 30 in during or after this contract your monthly benefit was based solely on those 30 years.

I don't know where you got the info about your vacation pay. NESC told me you would get whatever your hours had earned after your eligbility date--retire in november get most of your time in december. You earned it you get it. Call NESC for exact details. I know I haven't explained it very well.

 

Get private insurance??WHAT?? And when you go in the hospital they will not renew your policy and you will have no insurance, that's how it works!!! It's like someone with 10 DUI'S you will not get anyone to cover you for car insurance unless you pay $10,000 deductible, healthcare is even worse.

As far as your retirement if you get $3,000 a month and then go on S.S. you don't take a cut you get the same amount you knew going in that when S.S kicks in your Ford pension drops and S.S. makes it up, if Ford paid you guys your full pension and S.S. they would have been broke along tiime ago!!

But retires in general would rather Ford cut the workers pay in half then take a cut in your pension!!That's all the retires want is more $$ on our backs. Remember it was your generation of Ford worker that took THE LARGEST CONCESSIONS IN HUMAN HISTORY IN THE 80'S to save your jobs then so now it's our turn and you guys are telling us that were weak, well we just want to keep as many jobs as we can just like you did in the 80's!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

How dare you question the retirees! They can't even vote on the medical benefits. They want what they earned and they deserve it! You need to earn your way now, hopefully you will get to keep your job and benefits until retirement. Be thankful for what you have and keep buying Ford whether you like them or not. Don't bite the hand that feeds you and promote Fords to everyone you know. Maybe we can stay in business.

[Carbon Can Kat]

I don't know where you got the info about your vacation pay. NESC told me you would get whatever your hours had earned after your eligbility date--retire in november get most of your time in december. You earned it you get it. Call NESC for exact details. I know I haven't explained it very well.

 

That is true if you take the SRI or 28+ package options, with the ESTEP or STEP options you are viewed as to having voluntarily quit the company. That is how how it was explained by both the HR people at the plant and the Dearborn people who did the package presentations. Still it is worth a call to the NESC see what they say. On my separation papers it is shown I quit the companty due to lack of work at my location not that I retired.

[1993Stang]

I don't know where you got the info about your vacation pay. NESC told me you would get whatever your hours had earned after your eligbility date--retire in november get most of your time in december. You earned it you get it. Call NESC for exact details. I know I haven't explained it very well.

How dare you question the retirees! They can't even vote on the medical benefits. They want what they earned and they deserve it! You need to earn your way now, hopefully you will get to keep your job and benefits until retirement. Be thankful for what you have and keep buying Ford whether you like them or not. Don't bite the hand that feeds you and promote Fords to everyone you know. Maybe we can stay in business.

I beleive you are correct. I used to work at NESC only on the salaried side. Hourly could be different. But you are normally earning your vacation time back by working the hours in the previous year. Hence, if you were on medical for a long time you would get less vacation time if you were eligible for Dec. 1st. I know for a fact though that at the buyout meeting I asked the question if I was Dec1st eligible and had vacation time as of that date would I get paid??? The answer is yes, I would get paid only if my last day was after Dec. 1st . I would definately check into this even if you retire in November because vacation is earned. You had to work so many hours during that year to earn your vacation back in Dec.

[Quickdraw]

At my age (52) I always taught that I would have to stay working for 40 years since I hired in at age 19. I am just too young to retire or so I thought.

Now comes Ford with a simple but very complex offer. Take a buyout offer of $ 140000.00, keep your full pension, but drop your health insurance after six months. Interesting to say the least. Everyone says don’t do it, but with the climate of the auto industry and the upcoming 2007 contract talks lets all take a close look at this package.

First off I can guarantee that all of us they stay at Ford will lose some kind of health care benefits next contract. Maybe even the retiree’s will lose more benefits, as these folks are a major burden on Fords health care costs. Not to mention a pay reduction. This contract is going to get nasty for sure.

Second many of you don’t understand retirement at all. Right now (and this age may change) at age 62 and 1 month Medicare will become your primary health care and Ford will be your secondary insurance. In other words you not only lose half your pension to social security you lose your primary health care also.

Everyone with over 30 years seniority should watch the DVD Work or Retire available at your plants HR department for free. This DVD explains everything in depth.

Third the $ 140000.00 question?

$ 140000.00 will net right around $ 92000.00 take home. Not a bad chunk of change. Plus depending on your vacation ellibillity date you will get at least 200 hours of vacation pay. ($5600.00 gross) making your full take home at around $ 95000.00.

My plan is as follows. Keep back $ 15000.00 for yourself.

Take the remaining $ 80000.00 and invest it in a no load mutual fund. $ 80000.00 nets $ 6400.00 in interest a year after taxes at 10% based on a 10-year investment. Contact the Mutual Fund Store. Considering that I am 52 I would want a 10-year investment plan.

A good health care insurance plan for you and your spouse with the benefits that we enjoy from Ford will run depending on deductibles between $ 300.00 and $ 600.00 a month. Contact AARP, Aetna, Kaiser or United Health Care.

Lets just use an average of $ 500.00 a month (everyone’s premium will be different). That comes to $ 6000.00 a year. The interest on your investment will cover the insurance premium. All of my figures include deducted taxes.

This fellow Ford workers is a no brainier.

Investigate for yourselves. Do yourself a favor talk to a financial expert and your personal insurance agent about this matter.

Then take the $ 140000.00 and run After 10 years you will still have your $ 80000.00 that you started with.

 

I can tell *YOU* have NOT talked to a financial planner as you suggest to everyone else or you wouldn't recommend the $140,000 package.

 

Medicare doesn't start at 62 and one month, it starts at 65. That leaves you and your wife 13 years with NO insurance.

I hold a varity of mutual funds, they are just now getting back to where they were in 2000. Over maybe 25 years a good mutual fund MIGHT average 10% but there are Looooong periods where it doesn't return that much and often loses. Of the 34 (no load) Funds available in our Fidelity account only FIVE of those 34 averaged 10% per year over a 10 year period.

The retiree health plan was adjusted this year by vote of active Ford workers. It it likely to be many years before they mess with it again.

The Ford health care plan for a family costs about $15,000 a year (NOT $6,000).... when you turn *65* (after youve paid $15k a year for 13 years worth of coverage) you can get a Medicare suppliment for about $200 a month per person but even Medicare and the best suppliment doesn't cover everything Ford does (Dental, eye glasses, drugs, etc). If you have high drug costs you can expect to pay about $4,000 per year, per person, under the Medicare Part D drug plan.

 

Sorry to burst your bubble but I expect you will ignore this advice, will take the $140k and live for today, and cry later.

[howie]

I can tell *YOU* have NOT talked to a financial planner as you suggest to everyone else or you wouldn't recommend the $140,000 package.

 

Medicare doesn't start at 62 and one month, it starts at 65. That leaves you and your wife 13 years with NO insurance.

I hold a varity of mutual funds, they are just now getting back to where they were in 2000. Over maybe 25 years a good mutual fund MIGHT average 10% but there are Looooong periods where it doesn't return that much and often loses. Of the 34 (no load) Funds available in our Fidelity account only FIVE of those 34 averaged 10% per year over a 10 year period.

The retiree health plan was adjusted this year by vote of active Ford workers. It it likely to be many years before they mess with it again.

The Ford health care plan for a family costs about $15,000 a year (NOT $6,000).... when you turn *65* (after youve paid $15k a year for 13 years worth of coverage) you can get a Medicare suppliment for about $200 a month per person but even Medicare and the best suppliment doesn't cover everything Ford does (Dental, eye glasses, drugs, etc). If you have high drug costs you can expect to pay about $4,000 per year, per person, under the Medicare Part D drug plan.

 

Sorry to burst your bubble but I expect you will ignore this advice, will take the $140k and live for today, and cry later.

 

This ESTEP buyout tends to be confusing and Ford isn't making the choice any easier. I got a letter from NESC via HR given to me yesterday by the supervisor. It shows that under the ESTEP, I would get my full pension and the spplemental. But I've seen on here that under ESTEP, you won't get the supplemental, just your full pension. Calling NESC, I'm told that is correct, no supplemental will be earned. Calling HR, they say it will. I sure as heck don't want to take the 140K buyout and then watch my pension drop to under half. Seems to me, the best buyout package to take is "None of the above"... at least until I get a straight answer on my pension.

[sun3]

This ESTEP buyout tends to be confusing and Ford isn't making the choice any easier. I got a letter from NESC via HR given to me yesterday by the supervisor. It shows that under the ESTEP, I would get my full pension and the spplemental. But I've seen on here that under ESTEP, you won't get the supplemental, just your full pension. Calling NESC, I'm told that is correct, no supplemental will be earned. Calling HR, they say it will. I sure as heck don't want to take the 140K buyout and then watch my pension drop to under half. Seems to me, the best buyout package to take is "None of the above"... at least until I get a straight answer on my pension.

What is the supplemental?

[howie]

What is the supplemental?

 

The supplemental is the amount Ford pays you until you turn 62 and 1 month. At that time, your social security kicks in and the Ford supplemental is dropped.

 

an update on my previous post: Calling NESC again and after a half hour with them, one will be entitled to the supplemental and full retirement with the 140K buyout (ESTEP). All medical benefits drop off after 6 months of "termination."

[Glory_dayzd]

This ESTEP buyout tends to be confusing and Ford isn't making the choice any easier. I got a letter from NESC via HR given to me yesterday by the supervisor. It shows that under the ESTEP, I would get my full pension and the spplemental. But I've seen on here that under ESTEP, you won't get the supplemental, just your full pension. Calling NESC, I'm told that is correct, no supplemental will be earned. Calling HR, they say it will. I sure as heck don't want to take the 140K buyout and then watch my pension drop to under half. Seems to me, the best buyout package to take is "None of the above"... at least until I get a straight answer on my pension.

 

 

I took the 140k buyout. I called NESC today. They told me that I will begin recieving my full punsoin 12/15, 45 days after my retirement date, that the check will be for November and December, and that it would total $3020 per month, I do not lose the supplement. No where in those papers I signed did it say anything about losing the supplement, just the insurance. I took that buyout because 1. I am single and do not require family coverage and 2. I do not trust them with my insurance (I have no choice than to trust them with my pension) and prefer to take the money and provide my own.

 

Some folks who took the 100k buyout have recieved their checks, but I do not know of anyone who took the 140k package who has recieved it yet. Anyone? NESC told me that the checks are generated locally, from our individual plants.

[howie]

I took the 140k buyout. I called NESC today. They told me that I will begin recieving my full punsoin 12/15, 45 days after my retirement date, that the check will be for November and December, and that it would total $3020 per month, I do not lose the supplement. No where in those papers I signed did it say anything about losing the supplement, just the insurance. I took that buyout because 1. I am single and do not require family coverage and 2. I do not trust them with my insurance (I have no choice than to trust them with my pension) and prefer to take the money and provide my own.

 

Some folks who took the 100k buyout have recieved their checks, but I do not know of anyone who took the 140k package who has recieved it yet. Anyone? NESC told me that the checks are generated locally, from our individual plants.

 

I'm 52 and have 31.7 years at Ford. I'm thinking strong on the 140K buyout. I believe I've seen on here that one can expect around 92K after all taxes are deducted. There's a big part of me that is saying to just sell the house, sell the cars, sell all the stuff I've collected the last 30 years. Take the buyout money and buy a mini-winni and be a RV Gypsy. Stay South in the winter and North in the Summer. Any Hog Farms around from the 60's? Now all I have to do is try to talk the wife into it. :shades: