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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… (www.seattletimes.com) Más...Sort type: [Top] [Newest]
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%.
The Jack Welchification of Boeing continues by his disciples.
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...
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.
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.
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.
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.
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).
It's the old timer / hard lessons survivors who I have seen stand their ground vs crossing fingers (calculated risks).