Thread regarding Honeywell International Inc. layoffs

Honeywell Pensions Question(s)

Being a legacy Honeywell employ, we were given two pension choices back in c.2001(?), after the merger with Allied. One was to stay with the old plan, and accrue increases as always. The 2nd choice was to opt for a lump sum valuation, based on average 5 best of last 10 years x years of service x 0.6%, to arrive at the lump sum amount. The legacy Allied percentage is apparently 1.5%, or 2.5 times greater than old Honeywell. I honestly don't remember picking that new plan, as we were all being led to believe we were getting terminated shortly, and were signing several packets. Still here, but wondering what the formula looks like for the old Honeywell pension plan. Also, is anyone fighting the good fight, trying to bring us up to par with legacy Allied employees. Or did Bonsignore shaft us good when he sold us. (Merger my arse!)

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5kic

Are you referring to pension, or 401K (two different thing)? Because I left voluntarily for another opportunity with another company about 1.5 years ago at age 56. When I called Honeywell's help desk, and inquired about the pension plan I was told that the rule of 55 did not apply to the pension plan. For those unfamiliar, the rule of 55 states that if you leave a company (either voluntarily or involuntarily) that administers your 401K plan and you are 55 or older you will not be penalized with a 10 percent penalty for early dispersements.

by | Post ID:

To me its take the money as soon as you can. Any financial issues come up and pension is 1st thing to take a hit. I was laid off at 54 1/2 years young. There is a clause that says still eligible for early retirement age 55 if co terminated you. I had to help Hon understand this but started taking annuity at 55 and got another job. Get the money when you still have some life left in you.

by | Post ID:

It is great being out, isnt' it??

by | Post ID:

Simply call the help desk, go to Pension print & request your retirement numbers.

I find this 4 x before retiring snd they were very close to what I’m receiving now.

I get two checks, one from Bendix plan and the other Allied plan plus another 542.00/mo. for being under 65 yo.

I love being out of Honeyhell

by | Post ID:

Again, you can find the plan you're under, on the Hewitt benefits website. You'll have to look around for it, but it is an IRS declaration which lists about 25 separate plans, all from companies Honeywell or Allied bought. Your exact pension, with the exact formula can be found.

by | Post ID:

If your plan to invest conservatively right now, during a period of high CAPE (Cyclically Adjusted Price to Earnings Ratio), then good luck. Then, ask yourself this: "Did I make or lose money between 2008 - 2009?" If you did not make money, then you don't know how to invest conservatively.

The lump sum payout won't even begin to purchase an annuity that will begin to pay as well as a pension, so that gives you a good idea of how heavily discounted the present dollars are.

Sure, pensions are not inflation adjusted, and they're not for everybody. Just don't think you're smarter than everyone else when you take the $$ and run. If you do, be sure and report back 5 years from now and let us know if the money is holding its own or had dropped in value. My prediction: it won't remotely be what it is worth today.

by | Post ID:

The biggest problem with the Honeywell and many other contemporary company pension plans is that there is no inflation protection like there is with Social Security. Strong argument for taking most of the lump sums and investing it conservatively just to keep up with inflation especially if your spouse is significantly younger than you are.

by | Post ID:

Definitely worth a telephone call to HR direct. The were able to work through the details with me. They also provided details on the calculations that helped me find an error in the salary component due to a furlough the was in the calculation. They had used my lower furlough pay which was wrong

They helped get it corrected and ensure I get my $$$ when I do retire or get RIFed

by | Post ID:

I was given the choice between old pension plan and cash and carry plan after the failed GE takeover and chose the cash and carry. I survived long enough to cross the line where the old plan was more favorable but ask yourself this: " Will Honeywell and its old plan be around in another 20 years, or will they throw it to the Pension Guarantee federal program, where you might only get 10 cents on the dollar?" Taking the smaller amount of cash, fleeing and investing the cash wisely seems to be the better option in that context.

by | Post ID:

You will be quite pleased if you stayed with the old HON plan and made age 55 with the company. The net present value of the legacy plan is roughly 2x the Allied lump sum plan. If you don't make 55 the lump sum is better option.

by | Post ID:

I am recently retired (VRIF) and can tell you that you can find the plan you're under, on the Hewitt

benefits website. You'll have to look around for it, but it is an IRS declaration which lists about 25 separate plans, all from companies Honeywell or Allied bought.

Or just go to the retirement page and project a date for retirement. That will bring up your plan(s). My retirement is a blend of some years with Honeywell, and some years with the screwed up mess now called Honeywell.

Good luck.

by | Post ID:

I chose the cash and carry option when the choice was offered. I left in the summer of 2010. I took my cash and carry payout and rolled over into a self directed IRA. I’m lucky. I was reviewing magnitude of numbers. I think the cash and carry formula is pay (highest 5 year average)number of years of service15%. I just want to clarify the formula for audience.

by | Post ID:

Well, many I have talked to are with the 15% formula. I have talked with several people, with less time, less pay, and younger, who are going to get at least 2.5x my payout. My "lump" only increased by about $15,000.00 since 2001. Worst investment strategy ever!

by | Post ID:

It's 6% for old Allied as well.

by | Post ID:

I made a mistake on the fromula above. It's x6% for old Honeywell, and x15% for old Allied.

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