Taking Away Retirement Pay.

[Merlin]

After over 33 years with this company in NJ, this guy retires at 60 years of age. He is drawing a certain amount of retirement pay. When he reaches 62 years of age this company cuts his pay by two thirds, and tells him that now Social Security will pick up the difference beings he is 62. He calls S.S. and they laugh at him. The company also explains to him that when he reaches the age of 65, his retirement will be cut by another two thirds to practically nothing because S.S. will pick up more slack. With a retirement plan in place for years and years and a person working to that end and reaches it, how can a company just up and do something like this out of the blue? After some investigation, he discovered that they are starting to do this to other employees also.

 

[Hobbit]

After over 33 years with this company in NJ, this guy retires at 60 years of age. He is drawing a certain amount of retirement pay. When he reaches 62 years of age this company cuts his pay by two thirds, and tells him that now Social Security will pick up the difference beings he is 62. He calls S.S. and they laugh at him. The company also explains to him that when he reaches the age of 65, his retirement will be cut by another two thirds to practically nothing because S.S. will pick up more slack. With a retirement plan in place for years and years and a person working to that end and reaches it, how can a company just up and do something like this out of the blue? After some investigation, he discovered that they are starting to do this to other employees also.

Have him check the paperwork from the original retirement plan he signed for. If it has something about being able to change the pay, he's boned, since he signed it. However, if it doesn't have a claus allowing the benefit to change, he can sue the company for the difference.

 

[Nienna]

Have him check the paperwork from the original retirement plan he signed for. If it has something about being able to change the pay, he's boned, since he signed it. However, if it doesn't have a claus allowing the benefit to change, he can sue the company for the difference.

Very good advice. Sooth from the Youth!

 

[archangel]

Have him check the paperwork from the original retirement plan he signed for. If it has something about being able to change the pay, he's boned, since he signed it. However, if it doesn't have a claus allowing the benefit to change, he can sue the company for the difference.

however if he went to work for this company some thirty three years ago he should be covered by the 'grandfather'clause...the Federal Government went to this split retirement back in the 80's...as I worked in Federal Law Enforcement covered by a 20/50 plan I was Grandfathered in(since I joined in 75')...however new employees went into the split Federal Law Enforcement/SSA plan

 

[dmp]

however if he went to work for this company some thirty three years ago he should be covered by the 'grandfather'clause...the Federal Government went to this split retirement back in the 80's...as I worked in Federal Law Enforcement covered by a 20/50 plan I was Grandfathered in(since I joined in 75')...however new employees went into the split Federal Law Enforcement/SSA plan

He can't be grandfathered if he signed and agreed to what his company is doing.

 

[Mr. P]

Anyone that depends on a company retirement program is a fool (IMO), start an IRA, or if you can a 401k, better yet a ROTH.

 

[archangel]

He can't be grandfathered if he signed and agreed to what his company is doing.

sorry I did not see anything saying he did this....

 

[Merlin]

sorry I did not see anything saying he did this....

You're right, he didn't sign this.