Conference 7.286::digital

    re .436
    
>    Am I reading this right? It hardly seems fair for people on the low end of the
>scale, that they could work 10 years (or less) at DEC, only have a benefit of
>$3,499, leave, and get a one-time check for $3,499, while someone who has a 
>benefit of $3,501 will get that amount each year after age 65. Or is it figured
>that the avg. life expectancy is, ~75, so 10 years worth are due and the one-
>time check is $3,499*10 or $34,990???
 
    No, you are not reading it right. The <$3500 amount is the "current
    value" of the pension account, not the annual benefit you would
    receive at age 65. Like any annuity, it is a lot less in current
    cash value than it would be if you let it accumulate interest/divi-
    dends for x years. In simple terms, it is an amount equal to the
    cash you would have to invest now to produce the monthly benefit
    (annuity) you were entitled to at age 65.
    
    Dick

    And as far as I know you don't start accumulating retirement money
    till you turn 25 so say if you started when you were 20 and terminate
    when you are 30 you have your 10 years and your 100% but if you're
    on the low end of the wage scale you may find you're not even close
    to having your $3500 and indeed you will get a check in the mail.
    Before terminating it would be very wise to check what you have
    accumulated because you could wind up missing your believed to be
    retirement benefit by a small amount.
    
    I believe I'm right on the age 25 stuff but maybe someone who has
    a policy could verify it.

>    And as far as I know you don't start accumulating retirement money
>    till you turn 25 ...

	That was changed a few years ago. You now start accumalating pension 
money no matter how old you are. I started when I was 22 and wasn't 
eligible, but that changed, I was given retro-active credit for all time in 
the company.

    re: .0  The phrase "present value" is a financial code word meaning
    what the total-is-worth-today.  The retiree with $3,501 in vested
    benefits will get to choose (I think) between a lump sum payment
    or a "schedule of payments", such as $400 per year for 10 years.
    
    Does anyone know the percentage used to calculate the payment schedules?
                                                                  
    	rmm
    

    re .3: Age 25
    
    The DEC publication that we have here indicates that you do not
    join the plan till age 25.  It is when you join the plan that you
    start accumulating funds.  Your service time prior to age 25 counts
    only towards your vesting percentage.  Sounds like if you joined
    at age 20 and terminated at age 25 you would have been vested at
    50% but you would not have accumulated any funds and you would not
    receive even a payoff.

    Pension plans, life insurance, and the stock market all confuse
    me hopelessly.  (^;
    
    I don't understand all this.  At what rate do you "accumulate" funds
    in the pension plan?  I've been at Digital for almost 10 years.
    Has some percentage of my salary been put into the fund all this
    time?  How do I figure out what it's worth?
    
    						Pat

    You should have been getting a benefits bulletin every year that
    shows such things as expected social security benefits, retirement
    benefits, etc.  there are several calculations shown, including
    what you ahve been contributing.
    
    jack
    

Does the company contribute to the pension, or is it a payroll deduction?

When does accumulation of funds start?

    The company contributes to the pension.
    
    "Each regular, full-time employee employee who has been employed
    by the Company for one continuous year and who has also reached
    age 25 is a member of the Plan.  Those who met these requirements
    prior to July 1, 1966 became a member of the Plan on July 1, 1966.
    
    If an employee has not reached the age of 25 years upon the completion
    of 1 year of continuous service he will be eligible to join the
    Plan on the first day of the month following his 25th birthday."
    
    I don't know if this is the most up to date info or not.  The above
    info came from a blue book with a number on the back cover of
    0974/09 50.

< RE: Note 436.10 by HPSCAD::FORTMILLER "Ed Fortmiller" >


>    "Each regular, full-time employee employee who has been employed
>    by the Company for one continuous year and who has also reached
>    age 25 is a member of the Plan.  Those who met these requirements
>    prior to July 1, 1966 became a member of the Plan on July 1, 1966.
    
>    If an employee has not reached the age of 25 years upon the completion
>    of 1 year of continuous service he will be eligible to join the
>    Plan on the first day of the month following his 25th birthday."
    
This sounds like Discrimination on the basis of Age to me. If Person A
and Person B start working for Digital on the same day in the same job,
and Person A is 21 and Person B is 25 then Person B reaps the benefits
and not Person A. 

This does not seem like Digital to me ?

/Ted

    
    Unless  a 1987 (or 1988) version has been published, and you are
    a United States employee, try the document
    
    "Your Benefits Booklet" EJ-28859-86
                             
    Chapter 7 describes the Pension Plan in excruciating detail.  Some
    excerpts follow.
    
    "Digital pays the entire cost of your Pension Plan."
    
    "As a Digital employee, regardless of how many hours a week you
    work, you're eligible for membership..."
    
    "...you are enrolled automatically..."
    
    Vesting is 50% at 5 years, and increases by 10% a year to 100% at
    10 years. There are special categories for "old-timers" (pre June
    30, 1979 hires and those over 65 with less than 10 years service).
    
    Etc, etc for 24 some odd pages of relatively "painful", but VERY
    interesting reading.
    
    In the event of questions contact Personnel, I'm still trying to
    figure it out.  Maybe by the time I'm 65...?
    
    -ken-