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Pension deadline could speed retirement of experienced Boeing engineers

Boeing may see hundreds of veteran engineers retire this fall ahead of a pension adjustment that will dramatically slash the payouts to those who choose to take the money in a single lump sum. The interest rates used to determine the lump sum will be updated in November, after which one 35-year Boeing employee calculates that his payout will be cut by more than $200,000. ... Matt Kempf, senior director for compensation and retirement for SPEEA, estimates around 600 or 700 experienced local… ( More...

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great wildblueyonder 6
What a way to build a fine corporation, cheat the employees. Are the executive bonuses and salaries and retirement plans also getting dramatic cuts? (joke).
21voyageur 8
Boeing as it stands today, is the actual joke here. Interesting to see what the dark side of greed can do to the rank and file upon whose shoulders the company was built. Just sad.
David Beattie 3
This has nothing to do with Boeing. Try reading the INTELLIGENT and CORRECT explanation by IK2855 of how pension payouts are determined. This only applies to the lump sum payout which is optional. The promised annuity is the same. If you think the lump sum is a bad deal, take the annuity.
Charles Lindbergh 0
Nobody is being cheated. Everyone knows their pension numbers.
Michael Hart 9
what is a ..."Pension"?
Chris B 5
Not the first time Boeing has faced a mass exodus of engineers and all their experience. They did the same just a few years ago.

The result was the only thing that happened was " you know what" hitting the fan...

Then everything Boeing made was grounded...
lk2855 9
It's a Time Value of Money calculation and well know to anyone with the option for a lump sum. With interest rates very low for the last few years, the lump sum looks really good. Something I didn't see mentioned is that after a certain age (55?), the lump sum can actually go down because the number of years you are likely to live is lower. I was in a similar position in a different industry. When the interest rates increase, a lot of experience leaves the company.
21voyageur -8
Stop talking about money and numbers. Talk about people.
Stef Lar 6
You can be certain that those people are running the numbers right now to decide whether to leave early.
M. Keating 5
But the people who are the subjects of this thread, vis., engineers, know how to calculate these numbers and would likely not feel dehumanized.
lk2855 5
As I said, I was in this position in another industry. These are not new or unknown policies. This is simply about the interest rates changing and how that affects the time value of money. The people can still choose to take the annuity-type of pension and get a check every month. The lump-sum option is just that, an option. My former company used several different interest rates in their calculations and we got the one that worked out with the highest payout. Also, these interest rate changes are published 60-90 days before they take affect so people have time to make a choice. They don't come as a surprise.
David Beattie 3
Sorry, this is too informed and sensible for most of the folks below. It’s all that horrible, evil CAPITALIST system destroying the lives of their downtrodden employees, blah blah blah.
sparkie624 4
That is Just wrong... That is nothing more than Theft. If Boeing follows through with that, they deserve to lose a lot of experience!
Tim Eichman 2
I'm sure that the periodic recalculation is part of the union contract so it shouldn't be a surprise to the union. When it was ratified, they didn't expect to see interest rates rise (let alone so rapidly) to generate such a massive swing in the calculation, so everyone was expecting the same-old valuation.

Sucks for Boeing that they'll lose folks who jump earlier than planned; sucks more for those who are just shy of being eligible who have to live with the new values until rates go back down again...
Gavin Waters 2
Agree its a tough choice, but that is result of accountant and actuary process at any point in time. I went through that and at least end up with control over the funds to use how we like rather than a pension.
Mark Hansen 3
Boeing only started offering the lump sum option within the last 10 years or less. The present value of any particular pension is based strictly on interest rates, so it's not precisely Boeing's decision to cut the lump sum value in the near term. When rates are close to zero, as they have been for quite a few years, the lump sum value was pretty static and just a lot higher than it would've been if rates had been at something more traditional, like 5%.
Paul Hammerschlag 3
The Jack Welchification of Boeing continues by his disciples.
Alan Cordery 3
Stonecipher plus GE clowns are unsurviveable. What incredible bozos
Tim Eichman 1
I wonder how many will take the early retirement lump sum, then be hired back as consultant/contractors next year? Yea, it depends on how that union contract is written if that'd be allowed, but hell, if I had that option, I'd take it too...
Stefan Sobol 1
Don't know about Boeing, but most companies have the option to do this. However, most of them have policies that limit how long you can retain the contractor. If you are trying to contract someone for longer than the contracting limit you have to explain why you are using a contractor vs. an employee.
Rob Palmer 1
Oh Lordy! When I worked at Boeing back some years ago, the old timers were on top of everything--they ran the company. If Boeing just becomes another federal agency, here comes Airbus to fill the vacuum.
21voyageur 4
Culture shifted from engineering and long-term strategy to business/money managers and short term gains at any cost. We see the results. In other words, common sense vs greed. Greed won and will sink the company or make it a shadow of what it once was. Speaking from experience, Similar approach and outcomes with GE. All IMHO.
Charles Lindbergh 2
Baloney. Dennis Muilenburg, former CEO and singularly responsible for the 737 Max fiasco was a long term Boeing employee who also happened to be an engineer. He got fired. Anyone can be greedy, even engineers like Muilenberg.
James Murdock 4
Is he a career Engineer? Or one with the degree but on the management track for the last few decades?
It's the old timer / hard lessons survivors who I have seen stand their ground vs crossing fingers (calculated risks).


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