Conference 7.286::digital

	Try SUBWAY::INVESTING too.

	Heather    

    Call Dot Richardson at MSO or Beverly Robbins both of these women are
    
    totally conversant with the pension plan.

    PSW,
    
    	I recently asked the same question.
    
    	There is a Digital Benifits book, at least for employees in the US.
    As I remember it, somewhere near the back of the book, under the
    pension section, is a formula for calculating the money currently in
    your account.  
    
    	It is a long formula that requires you to know your base salary for
    each year you have been at DEC.  The value for each year gets
    multiplied by some magic number and then it all gets added together.
    
    	Maybe someone in the US could help out by providing the info here.
    
    								Mel

    If you are over 50 yrs of age, you can have access to the info thrua
    personnel system that will calculate several different scenarios for
    you. Why the age criteria, I don't understand, but that's what was told
    to me by the person who does "retirement counseling" in our facility.
    
    I "qualify" and I , too,am doing some work with an investment
    counselor, and unfortunately have put my benefits book in a very safe
    place which I cannot identify........;-(
    
    The nice thing about this system (called PEMS Projected Pension
    Calculation) is that it will give you a lump sum figure along with the 
    regular annuity figures, and you can factor in projected salary
    increases......(really? increases?)....along with a projected interest
    rate that is used in the lump sum cashout calculation.
    
    There should be someone in your facility or Personnel dept. that can do 
    this for you........providing you "qualify"
    
    Stan Z.

    Take a simple case...if you leave DEC after you are fully vested, you
    either receive a lump sum or are vested in the pension plan for payment
    starting at age 60 or whatever, depending on the present value of all
    your benefits.  If it's under a certain amount (I think $3500) you get
    a lump sum, otherwise you will receive payments at some point in the
    future.
    
    But...how is that present value calculated?  You can assume, for
    example, that if you receive $X per month based on the formulas in the
    benefits book (by years of service and salary) for a certain number of
    years based on life expectancy, there is a certain present value to
    those cash streams that can be calculated back to the beginning of the
    payments.  The complicating factor, however, is if you leave DEC at,
    say, age 35, and your retirement or early retirement doesn't start
    until 20 or 30 years later, are those cash flows discounted back to the
    present day (1991)?
    
    Even though there may not be readily available information on this,
    there must be a standardized way to determine this - and associated
    policies - given that this has been done for many people, especially in
    the last 2 years with the layoffs.
    
    Anyone have any input on this?  It's more of a curiosity question in
    trying to understand just exactly how much one's vested pension is
    worth at any given time.

    
    
                 Thank You all! The information you gave helped me get
                 the answer today. Digital is still "Top Notch" to me!
    
                                              Phil 

    It would be nice if you had the option of taking a lump sum regardless
    of the amount.  I'm not certain that Digital will be around to make
    good on a pension in 25 years.

    .7:
    
    Are there not legal requirements regarding pensions, such that the
    pensions continue to be paid after the company goes out of business?
    
    Dick

    There may be some legal requirements, but I'm not sure what good they
    would be in the event that a company went out of business.

    
      I thought it odd in 1985 during the "Voluntary Layoff" that my
    ex-S.O. had to leave her accrual towards pension on account to be
    drawn at '62-65',and was given an address to refer any address
    changes to. I on the other hand was cashed out (~$350). If I recall
    correctly it depended on hire date when the pension funds were
     initiated . I was employed from May 1980-June 1985. She was in about
    6-8 months prior to my hire date.
    
        Thanks for the pointer on getting the accrued pension info.
    Seems her lawyer wants a fraction of my pension when I'm able to 
    draw it.....(if I'm able). My re-hire date was Jan 1988 so, I figure 
    that nothing from nothing is a lotta nothing.
    
    
           paul

    One of the provisions of the Employee Retirement Income Security Act
    (ERISA) was that retirement programs had to follow certain rules that
    would guarentee the retirement trust fund. One of the rules was that
    the trust fund was separate from the companies ledger, that the company
    was responsible to contribute to the plan on a defined benefit basis,
    and that investments made by the trust fund met certain requirements.
    
    If Digital were to die, the pension fund would continue as a fiscal
    entity, as long as there were living beneficiaries.
    
    The reason that one hears of problems with pensions (like LTV steel)
    lately is that there were phase-ins of compliancy with ERISA, and
    certain finacially ailing companies never met the requirements before
    going under.
    
    I would worry more about an inflationary cycle destroying the benefit
    of earlier years pension contributions, and/or general market problems
    decreasing the value of the trust fund.
    
    /jim

    TOO THE ONE THAT SAID OVER 50. IS THAT 50 AND OVER OR JUST OVER 50 ?
    

    I'm pretty sure of this BUT usual disclaimers....
    
    If you are trying to calculate your pension
    
    1 1/2 % (???) of current years salary
    1 1/2 % of last years salary
    1 1/2 of 3, 4, 5th years back salary
    
    n% of the (6th years salary) x remaining number of years service
    -------
    total
    
    NOTE. The salary or wages for the year is not the W2 amount for that
    year. It's your salary based on the financial year.  e.g.
    
    July 1st to review date   = X weeks at "old" salary = $n
    review date to June 30th  = X weeks at "new" salary = $y
    							-----
    							years salary.
    
    Sooo, you need to know the actual end / beginning FY date for each
    year, your effective review date,1 before and after weekly amounts,
    and calculate it for the last 6 years.
    
    
    Personnel also obtained a pension and lump sum calculation for me,
    based on a specific retirement date. If you request the same
    information you probably need to specify a date a couple of months away
    - December 31st for example.  Mine came through in a couple of weeks.
    -My calculations and personnel's don't seem to match but I haven't
    rechecked.
    
    If my understanding of the pension plan is wrong, please, somebody,
    let me know.    
    
    Thanks. 

    Please, before you do anything, write to ICS::Englert (Jack). He can
    tell you all about Benefits at what age, leaving DEC or not. It varries
    in many ways. His job is Benefits!!!
    Good luck! Ruth

    re- .12
    
    I took it to mean 50 and over.

    Digital will respond with the value of your pension if you are in  the
    process of getting divorced.