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Boeing lost hundreds of experienced Seattle-area engineers last month
Last month, hundreds of very experienced Seattle-area Boeing engineers walked out the door. They chose to retire early with the realization they’d have a significant cut to their pension payouts if they delayed. (www.seattletimes.com) المزيد...Sort type: [Top] [Newest]
Many industries are facing the same situation. GM had a record number of early retirements last month for the exact same reason. Cheaper to take the early out losses than to stick it out with new higher rates. Can't blame the employees for that, also can't blame the company. Just another result of our out of control & tanking economy. Putting the screws to ourselves more and more.
Agree. Further conversation with my son - In a vast majority of cases, including Boeing, the numbers just don't work out to take the lump sum and come out ahead of an annuity. Many of the financial advisors that work with the Boeing employees recommend the lump sum so they can manage that money for the employee instead of the Boeing pension teams. A majority of the employees hate Boeing corporate and view taking the lump sum as "sticking it to the man". Pretty short sighted, IMO.
Thanks for the inside info.
From the article -
"Boeing has pushed out the launch of an all-new airplane toward the end of this decade. By then, there’ll be a limited number of senior engineers left who worked on development of the last all-new plane — the 787, delivered in 2011 — and have detailed knowledge of that complex process and its pitfalls."
Does not bode well for the future of Boeing Commercial airplanes ......
"Boeing has pushed out the launch of an all-new airplane toward the end of this decade. By then, there’ll be a limited number of senior engineers left who worked on development of the last all-new plane — the 787, delivered in 2011 — and have detailed knowledge of that complex process and its pitfalls."
Does not bode well for the future of Boeing Commercial airplanes ......
it's ok - by then America will be adopting the Chinese copies - just as we have for everything else.
"The lump sum discount rate is adjusted annually, so the 2022 discount rate is still using the low interest rates from 2021. As we flip the calendar to 2023, the rate will adjust higher as rates have risen materially in 2022. For most retirees this equates to nearly a 20% difference in the lump sum payout (and these are highly paid engineers, so it's not a small number). The union bosses all figured this out and encouraged any older engineers that were considering in the next few years to retire now. So that's been fun to manage since the lump sums come out of the pension with about 2 weeks notice."