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Ford Offers Retirees A Bag Of Cash To Go Away

Forbes -- Ford Motor said Friday it will offer 90,000 of its retired engineers and office workers the option to accept a lump sum payment now and to forgo their regular monthly pension checks for the rest of their lives.

The voluntary pension buyout for U.S. salaried retirees and former employees is an effort by Ford to improve its balance sheet by reducing its massive $74 billion worldwide pension obligation. The company called it the largest pension buyout offer in history.

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Submitted Apr 28, 2012 By: Mudsprings

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honda0105 Champion Author Tallahassee Posts:18,828 Points:1,637,220 Joined:Nov 2008	Message Posted: May 1, 2012 5:58:14 AM Ignore honda0105 Report Abuse if the money is good, and the people invest well, it can be better than a pension.
the1roadhog Champion Author Atlanta Posts:9,949 Points:2,081,505 Joined:Jun 2007	Message Posted: Apr 30, 2012 9:06:32 AM Ignore the1roadhog Report Abuse Take the lump sum, reinvest it into an annuity and get monthly payments for as long as you want at some sum of money.
gs7101 Champion Author San Antonio Posts:5,658 Points:396,020 Joined:Jun 2009	Message Posted: Apr 30, 2012 7:13:14 AM Ignore gs7101 Report Abuse I'd rather have my monthly pension check!
Jeff4U Champion Author Atlanta Posts:8,895 Points:1,879,930 Joined:Nov 2004	Message Posted: Apr 30, 2012 4:27:07 AM Ignore Jeff4U Report Abuse Get it while the gettin's good.
investmentdr Champion Author Cleveland Posts:4,127 Points:1,480,910 Joined:Sep 2008	Message Posted: Apr 29, 2012 7:43:00 PM Ignore investmentdr Report Abuse what ever they're offering; you'd be crazy to take.
jeyrivera89 Rookie Author Boston Posts:40 Points:57,520 Joined:Nov 2011	Message Posted: Apr 29, 2012 12:49:15 PM Ignore jeyrivera89 Report Abuse would you take the money?
heydano67 Champion Author California Posts:1,806 Points:385,235 Joined:Feb 2012	Message Posted: Apr 29, 2012 12:18:58 PM Ignore heydano67 Report Abuse Make sure to do the math for yourself.
Sneakers55 Champion Author Houston Posts:51,853 Points:2,169,375 Joined:Nov 2005	Message Posted: Apr 29, 2012 7:31:17 AM Ignore Sneakers55 Report Abuse I'd say to get a financial planner to see what you should do with the lump sum.
07skydriver Champion Author Ohio Posts:3,379 Points:1,010,280 Joined:Feb 2009	Message Posted: Apr 29, 2012 7:10:09 AM Ignore 07skydriver Report Abuse Just say no.
mike1881 Champion Author Fayetteville Posts:1,437 Points:592,125 Joined:Feb 2011	Message Posted: Apr 29, 2012 7:08:13 AM Ignore mike1881 Report Abuse I would keep the pension.
dr047 Champion Author Cleveland Posts:2,731 Points:543,420 Joined:Aug 2010	Message Posted: Apr 29, 2012 6:17:37 AM Ignore dr047 Report Abuse What does this "Article" have to do with gas prices?
Amplion Champion Author Oregon Posts:6,921 Points:1,892,760 Joined:Sep 2005	Message Posted: Apr 29, 2012 4:08:01 AM Ignore Amplion Report Abuse I would not count on FORD or GM or UAW surviving another 20 years !!!!! Crown Vic. is gone & soon the FWD junkers will start falling apart !!!!!
jetskijerry Champion Author North Carolina Posts:4,036 Points:799,970 Joined:Mar 2011	Message Posted: Apr 29, 2012 12:10:22 AM Ignore jetskijerry Report Abuse Don't think I would want to forego my pension.
1momsunshine Champion Author Ottawa Posts:5,615 Points:1,026,020 Joined:Mar 2010	Message Posted: Apr 29, 2012 12:03:59 AM Ignore 1momsunshine Report Abuse ok
Vette1967 Champion Author Albany Posts:6,107 Points:1,303,700 Joined:Jun 2009	Message Posted: Apr 28, 2012 11:53:26 PM Ignore Vette1967 Report Abuse There are those who will take the bait.
bar1035 Champion Author Charlotte Posts:9,343 Points:1,325,920 Joined:Aug 2006	Message Posted: Apr 28, 2012 11:33:44 PM Ignore bar1035 Report Abuse we can't tell just from this story what anyone should do. everyones situation is different
CVA19 Champion Author Salem Posts:2,393 Points:632,975 Joined:Aug 2011	Message Posted: Apr 28, 2012 11:33:00 PM Ignore CVA19 Report Abuse Way to go, Ford! You gotta do what you gotta do. Companies AND governments offer buyouts and lump sum payments all the time; this is nothing new, nor is it unethical--anyone who thinks otherwise is ignorant. Each employee will and should consider the pros and cons. It is an "offer"--accept or decline, it's that simple.
RitaVespa Champion Author Oregon Posts:3,109 Points:819,820 Joined:Jan 2011	Message Posted: Apr 28, 2012 9:22:04 PM Ignore RitaVespa Report Abuse ouch. I would take it
schatzila Champion Author Los Angeles Posts:5,089 Points:1,044,320 Joined:Jun 2010	Message Posted: Apr 28, 2012 8:36:09 PM Ignore schatzila Report Abuse Wish it mentioned the breakdown per person.
wamster Champion Author Houston Posts:4,419 Points:720,340 Joined:May 2007	Message Posted: Apr 28, 2012 7:25:04 PM Ignore wamster Report Abuse I would contact a financial advisor immediately, to verify the tax ramifications. As well as making sure I wasn't getting gypped.
amerk73 Champion Author Dallas Posts:7,190 Points:1,648,780 Joined:Oct 2008	Message Posted: Apr 28, 2012 6:57:30 PM Ignore amerk73 Report Abuse good for them
Cheepo Champion Author Tampa Posts:9,994 Points:3,148,880 Joined:Apr 2003	Message Posted: Apr 28, 2012 5:57:53 PM Ignore Cheepo Report Abuse Great!!!!!!!
A2J Champion Author Richmond Posts:3,210 Points:629,675 Joined:Aug 2011	Message Posted: Apr 28, 2012 3:16:27 PM Ignore A2J Report Abuse seems Ford is trying hard to survive the competitive market with crazy offers..,
tjc09f Veteran Author Tallahassee Posts:477 Points:694,475 Joined:Mar 2011	Message Posted: Apr 28, 2012 2:12:07 PM Ignore tjc09f Report Abuse Ok
Travel1st Champion Author Las Vegas Posts:3,068 Points:496,635 Joined:Aug 2011	Message Posted: Apr 28, 2012 12:48:14 PM Ignore Travel1st Report Abuse Interesting.
335d1 Champion Author Virginia Posts:2,524 Points:786,745 Joined:Feb 2011	Message Posted: Apr 28, 2012 12:40:21 PM Ignore 335d1 Report Abuse Just like the lottery, no one answer for everyone. Depends on your own circumstances.
newman26 Veteran Author Milwaukee Posts:320 Points:1,474,850 Joined:Jun 2006	Message Posted: Apr 28, 2012 12:25:37 PM Ignore newman26 Report Abuse The company I work for offers a lump sump or a monthly check. The best thing for them to do is to check with a financial planner.
clpassenubye Champion Author Los Angeles Posts:3,374 Points:776,930 Joined:Mar 2011	Message Posted: Apr 28, 2012 12:25:31 PM Ignore clpassenubye Report Abuse I wonder how many will take the buyout
TerrySawchuk All-Star Author British Columbia Posts:850 Points:305,395 Joined:Jun 2011	Message Posted: Apr 28, 2012 12:05:31 PM Ignore TerrySawchuk Report Abuse Wow.
FuelishGuy All-Star Author Edmonton Posts:823 Points:950,855 Joined:Oct 2008	Message Posted: Apr 28, 2012 11:27:14 AM Ignore FuelishGuy Report Abuse Ford is for the employees ...just not so hot on retirees. Hope retirees weigh the benefits vs risks. Ford's bankrupcy would yield them far fewer options.
OTISFL Champion Author Pensacola Posts:4,745 Points:892,540 Joined:Apr 2009	Message Posted: Apr 28, 2012 11:16:18 AM Ignore OTISFL Report Abuse Ford is NOT for the employees!
SammyAdams Champion Author Tallahassee Posts:3,198 Points:820,425 Joined:Nov 2010	Message Posted: Apr 28, 2012 11:14:28 AM Ignore SammyAdams Report Abuse There are too many variables to say with certainty which would be a better way to go for each person. But unless the government takes over all pensions (Something that is not so far fetched), it might be worth considering an offer for a lump sum payout. If Ford goes bankrupt, there will be many who would have been better off considering a lump sum offer.
Agarre Champion Author Richmond Posts:1,335 Points:263,785 Joined:Feb 2012	Message Posted: Apr 28, 2012 11:04:03 AM Ignore Agarre Report Abuse ok
YaBassa Champion Author Michigan Posts:2,571 Points:544,800 Joined:Nov 2011	Message Posted: Apr 28, 2012 11:02:10 AM Ignore YaBassa Report Abuse Ford, like many Big Corporations is more concerned about their bottom line than the wellness of the employees/retirees. This buyout may be good for some but all should examine the fine details before grabbing the money.
FunMyster All-Star Author Indiana Posts:909 Points:73,480 Joined:Jul 2011	Message Posted: Apr 28, 2012 10:59:44 AM Ignore FunMyster Report Abuse ok
Ticobird Champion Author Huntsville Posts:3,329 Points:1,137,380 Joined:Oct 2009	Message Posted: Apr 28, 2012 10:56:38 AM Ignore Ticobird Report Abuse This is a big decision for these workers and it certainly is not a simple one. They need to get it right because there is no do-over allowed. "While Ford said it would likely take some non-cash charges against earnings for the program, the buyouts would have a minimal impact on Ford’s operating income. " It will be interesting to see what effects this plan will really have on Ford.
dr047 Champion Author Cleveland Posts:2,731 Points:543,420 Joined:Aug 2010	Message Posted: Apr 28, 2012 10:53:51 AM Ignore dr047 Report Abuse What does this have to do with gas prices?
GoLancer4 Champion Author Ohio Posts:1,812 Points:453,540 Joined:Sep 2011	Message Posted: Apr 28, 2012 10:44:13 AM Ignore GoLancer4 Report Abuse ok
leraar2 Champion Author Massachusetts Posts:3,904 Points:815,380 Joined:Mar 2011	Message Posted: Apr 28, 2012 10:39:22 AM Ignore leraar2 Report Abuse assume these retirees also contributed to social security. their SSI is reduces and/or taxed because they receive alternate monthly benefits. with a lump sum, these go away on their tax statement after one year. then they'll be able to collect their UNREDUCED social security payment.
RUNNINONEMPTYFL Champion Author Florida Posts:1,408 Points:461,800 Joined:May 2011	Message Posted: Apr 28, 2012 10:38:28 AM Ignore RUNNINONEMPTYFL Report Abuse Looking out for FORD, Job-1
car253 Champion Author Ohio Posts:6,430 Points:1,495,345 Joined:Oct 2008	Message Posted: Apr 28, 2012 10:18:18 AM Ignore car253 Report Abuse One would have to be very careful and read the fine print, remember Ford is not looking out for your best interest.
playtimeCLE Champion Author Cleveland Posts:8,704 Points:1,572,075 Joined:Nov 2008	Message Posted: Apr 28, 2012 10:14:27 AM Ignore playtimeCLE Report Abuse Most of the people that take this will likely pay off large debts in hopes of not needing so much money to get by afterwards.
frostyWV Champion Author West Virginia Posts:2,339 Points:519,235 Joined:May 2011	Message Posted: Apr 28, 2012 10:07:57 AM Ignore frostyWV Report Abuse good for Ford,bad for retirees.
sljbc475 Champion Author Tucson Posts:4,360 Points:900,075 Joined:Dec 2010	Message Posted: Apr 28, 2012 10:04:40 AM Ignore sljbc475 Report Abuse Maybe this idea should be considered by other companies.
Skunk63 Champion Author Phoenix Posts:2,692 Points:585,975 Joined:Oct 2011	Message Posted: Apr 28, 2012 9:58:48 AM Ignore Skunk63 Report Abuse Wow, a company that actually plans for its future, looks after its shareholders and trusts its employees to choose what is right for them. Are you listening, Washington?
Don20 Champion Author Oklahoma City Posts:9,814 Points:2,647,330 Joined:Mar 2005	Message Posted: Apr 28, 2012 9:58:17 AM Ignore Don20 Report Abuse If the stock market was not such a mess, you could do well. But this day and age I would prefer the month check...
indrix All-Star Author Toronto Posts:597 Points:162,815 Joined:Sep 2011	Message Posted: Apr 28, 2012 9:55:42 AM Ignore indrix Report Abuse staggering amount
bigdipperMS Champion Author Mississippi Posts:1,541 Points:550,130 Joined:Apr 2011	Message Posted: Apr 28, 2012 9:55:41 AM Ignore bigdipperMS Report Abuse If the retiree is 65 or older and on Medicare, take the money and buy an annuity. A bird in the hand is better than two in the bush.
BEGTWO Champion Author Maryland Posts:2,077 Points:751,315 Joined:Sep 2010	Message Posted: Apr 28, 2012 9:53:35 AM Ignore BEGTWO Report Abuse WOW!!!
justme48 Champion Author New Jersey Posts:2,660 Points:538,970 Joined:Jun 2011	Message Posted: Apr 28, 2012 9:52:50 AM Ignore justme48 Report Abuse I do not know about this????