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Post by BelTex on Sept 18, 2013 9:58:21 GMT
Dear All
This is related to Retirement Plan and NOT Savings Plan ( 401K / matching etc,)
I have been told by my recruiter that there is a new Retirement Plan for new employees hired on Oct 1 this year. The way she explain is: retired or employees that departs, will get some sort of a monthly pension ( or monthly annuity) not a lump sum payment at the end; and will get a yearly bonus equivalents to one monthly salary - this is all approximate/est info.
Does anyone understand this new plan better or perhaps has received more details that can be shared?
Does the existing Aramco retirement Plan (old retirement plan ) is based on lump sum payment at the end of the job/retirement.
Which plan will be better? are new people getting equal or less?
Thanks
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Post by divenpuff on Sept 18, 2013 14:03:52 GMT
I am also interested in any information anyone can provide...
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Post by Bms1 on Sept 18, 2013 15:11:47 GMT
Is that plan only for US payroll?
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Post by OAS on Sept 18, 2013 16:57:35 GMT
As per my understanding, people under new plan will receive less.
Under the old formula the factor used to be 2.4% x years of service x highest avee x % you would be eligible for based on age – everything is the same except the factor is now 2.0%.
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Post by llfarms on Sept 18, 2013 23:37:32 GMT
Apparently, you get both if starting early than that. Some of us are rushing to start by the 1st,
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Post by pinoycoolada on Sept 19, 2013 3:14:18 GMT
The new formula is indeed a significant amount. For example, last highest monthly salary of 20000 working for about 15 years is 20000x2.4% x 15 years is 7200 per month. 20000 x 2% x 15 years is 6000 per month difference of 1200.
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Post by cuttlefish on Oct 5, 2013 5:34:57 GMT
Does this new pension vest immediately or after a particular time period, i.e. 3 yrs., 5 yrs., etc.?
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Post by pinoycoolada on Jan 12, 2014 10:03:46 GMT
100% vesting is at 5 years or if participant reaches 60 whichever comes first.
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Post by O&GEngg on Jan 16, 2014 16:24:55 GMT
Hey there...just looking for a little more clarity on this. I get the 2.0% multiplier but what I'm a little fuzzy on is the salary and years of service.
1) Is the salary your base salary or is it your base+expat premium uplift+commodity/service uplift?
2) The years of service - is this the number of years you've been with the company or how many years of experience you have?
This would give a couple different scenarios even if your salary stays the same
Scenario 1 - salary = 20,000, years w/ company
Year 1 = 20,000 x 2% x 1 = 400/month = 4800/yr
Year 2 = 20,000 x 2% x 2 = 800/month = 9600/yr
Year 3 = ................... = 1200/month = 14400/yr
Year 4 = ................... = 1600/month = 19200/yr
Year 5 = ................... = 2000/month = 24000/yr
Total Over 5 years = 72,000
Scenario 2 - salary = 20,000, years of service = 10 (at hiring point)
Year 1 = 20,000 x 2% x 10 = 4000/month = 48000/yr
Year 2 = 20,000 x 2% x 11 = 4400/month = 52800/yr
Year 3 = ...............x 12 = 4800/month = 57600/yr
Year 4 = ...............x 13 = 5200/month = 62400/yr
Year 5 = ...............x 14 = 5600/month = 67200/yr
Total Over 5 years = 288,000
Pretty big difference eh...or...I'm completely out to lunch on how this whole system works.
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