Conference 7.286::digital

    This is from memory...
    
    Social security benefits are based on the number of quarters you work
    to make the minimum.  I think you need to work for 40 quarters to
    qualify.  Once qualified, your benefit amount depends only on the age
    at which you begin to draw.  The rich get the same benefit as the
    middle class.
    
    You can request a statement from Social Security which will provide a
    nice summary of your earnings history with respect to making the
    qualifying minimums.  The statement includes a description of how
    eligibility works.  I think you can get a form to request same from
    your local library, or maybe post office.  My financial planner did it
    for me.

    The S.S. payment is worked out of your last 35 yrs. 
    
    WHeWWWWWWWWW !!!! glad that was false.
    
            The S.S. information # is 1-800-772-1213
    
              They are very helpful and courteous.
    Dan

    If I take the Early retirement and leave the end of May I will be 5
    months short of being 65 (I am 59+5=64) What % of the pension will I
    get, 93% or 100%?
    
    I guess I can ask at the meeting, but I'm bashful. :-) And the Benefits
    consultant's phone is off the wall.

    I believe that the table in the Employee Benefits Booklet (and
    reproduced somewhere in this discussion) is a step function with one
    step per year rather that -f'rinstance- a step each month or a step
    each day. Do you have some reason for thinking it might be something
    OTHER than 93%? 
    Aha! It just occurred to me that perhaps you are thinking that anybody
    "in their Nth year" is N years old, or anybody in their Nth year with
    Digital has completed N years of service? (which sounds like plausible
    speculation) I think it once was the case -and no longer is- that a
    person received an increment in vesting or vacation, at the BEGINNING
    of the fiscal year. So on July 1 of my 5th (fiscal) year of service
    (back in fiscal year 1977) I would have received an extra week of
    vacation even though my 5th anniversary would not have been until the
    following Sept. But I may be misremembering that.
        
    				herb

    John,
    
    Not sure of the exact specifics of this "S.E.R.B."  BUT, I am assuming
    it will be (for the most part) the same as the "traditional"
    retirement.  
    
    You, could, (at least with NON-S.E.R.B.) defer receiving your pension
    benefits until you were "65".  If you didn't, your benefit would be
    reduced for each month you receive payment before you turn "65".
    
    Regards,
    
    CJ
    

    One issue that seems a little mean is the quitting day of May 31.  I
    plan on taking S.E.R.P. but I had also planned on buying some stock
    through the Employee Stock Purchase Plan on 1-June.  Will I miss out or
    did I misunderstand the Stock Purchase Plan?  Do we actually get the
    stock on May 31?
    
    Larry_with_89_days_to_go

    RE: .3

    Para 8.4.3 "How retirement age affects your pension benefit" of the
    Retirement Policy Manual, states that at age 64, percent of benefit
    payable is 93.3. 

    I think you are safe to assume they will consider you 64.

    You are almost a perfect candidate for this program. Anyone in there
    60's are a real winner assuming they are ready to retire of can walk
    into another job asap.

    Seems like I read somewhere that half or 3500 of the 7000 fall in the 50
    to 55 range. Being one in this range, I would think this group would be
    the least likely to take the package. For me to consider the package I
    would have to have a job to walk into, which I don't at this moment,
    and realize a sizable lump sum payment of the pension fund. The 26
    weeks is not attractive since I will give 28% to Uncle Sam.

    I agree that the plan is not fair for the long term employees. It would
    have been so simple to offer 26 weeks plus one week for every year of
    service.

    The gamble is will there be an SERB II or III. Probably yes, if the
    current plan is not considered successful. Will II or III be any
    better, probably no, for the legal reasons already stated. What they
    could do is open up the range to say 7 + 7, etc. I would think that if
    they offered anything better than 26 weeks, they would have to make it
    retroactive or face the law suits.

    The message to upper management, the authors of SERB, should be, tell
    us what you are thinking. What is the goal. Be open and honest. If we
    are ever to be a real people company, then we need to share the vision.
    If we know the vision, then the employees can make decisions and feel
    good about the decisions they made or are about to make.

    What is the plan, down size 5,000, 10,000, 20,000. Get on with it so we
    who stay can get on with it and those who leave can get on with it. This
    lack of information to the employees has got to be effecting
    performance at every level from sales to the value of our stock.

    Any suggestions?

    Jim

    If a person took the S.E.R.P. could they come back to work for Dec.
    as a contract worker or a consultant ?
    
    Dan
    
    

    Quoted from the SERP booklet for managers.
    
    	"Re-employment of retiring employees will also be restricted.
    Personnel policy allows rehire of retirees only to fill critical
    Company needs, limits re-employment to no more than six months for each
    assignment, prohibits rehiring retirees as employees for more than 19
    hours per week, and requires vice presidential approval. In addition, a
    retiree electing a lump sum pension benefit under SERP is not eligible
    for rehire until six months after retirement."

    re: .5
    
    So it sounds like I may be able to defer my pension for 5 months and
    pick up 7% more on the monthly payments. The only thing now is I am
    leaning toward taking the lump sum and put it in an IRA. I am already
    59 1/2 and can start drawing it out. With it in an IRA I can leave it
    to anyone if my wife and I don't make it to a ripe old age. :-)
    

    I think this offer ends on May 31, so if you wait you'll lose the 26
    week payment and also the increased years factors. Right?

        A co-worker came up with this....
    
    	Joe, age 50 with 25 years service, got TFSO'ed in Jan 1992.  He 
    	left with a check for 77 weeks pay.  Eligable, he can now apply 
    	for the SERB plan.  He'll not get the 26 weeks pay, but he'll 
    	keep his 77 weeks pay.
    
    	Tom, age 50 with 25 years service, was not TFSO'ed, but qualifies 
    	for SERB just like Joe.  He will get a check for 26 weeks pay, 51 
    	weeks less than Joe. 
    
    	If this is correct, then Tom loses a years pay (51 weeks) versus Joe.
    	Is this a flaw?
    
    

    Re .7 and others who might be concerned about " . . . 26 weeks is not
    attractive since I will give 28% to Uncle Sam." You might not want to
    jump to this conclusion. It is my understanding that in some lump sum
    payments, one can "average forward" for a five year period under
    current tax rules. I also read in the Boston Globe (I know, I know,)
    recently that in Pres. Bush's tax plan (the one with the deadline to
    Congress in March) he has ELIMINATED "averaging forward". According to
    the article, the proposal is buried in the plan, but it would alienate
    those eligible for lump sum benefits under pension plans in the next
    few years.
    
    If you think of it, one elects to take SERP, accrued wages are only
    5/12ths of a year, take the 26 weeks "incentive" and you have 11/12ths
    salary averaged over a five-year period. Tax rate is considerably lower
    year 1 - and for the next 4 (presuming you live on pension alone)
    
    As always, check with you accountant or tax preparer to see what would
    happen in your individual situation.
    
    Tom_with_15_yrs_10_mos_27_days_to_go                     

    RE 12:
    
    Why would Joe be eligible for SERP?  He's already been TSFO'd (love
    these acronymns), so he is no longer an employee, right?

    	re .12
    
    	Joe would not get the increased pension payments for life.
    	(Or the corresponding increase in the one-time lump sum
    	payment.)
    
    	The question then is, is the increased pension payments
    	from the 5+5 greater than or less than the 51 weeks TFSO
    	Joe can get.

    Let's move this discussion to the new SERP notesfile.

    ADD ENTRY SERP/FILE=NOTED::SERP

    or touch KP7 to add to your notebook.