Plant closing, might be time to move west. Anyone with power plant connections?

[Nuke Man]

Yesterday the company I work, for released their plan to close the nuclear power plant I work at. My family and I are considering it might be time to head west and cut ties with the company. They are offering the option to transfer to another plant either here in Illinois or out on the east coast. We own several power plants. The only thing is I will be able to retire at 55 years old if I stay with the company and they pay extremely well. I'm really having a hard time letting the early retirement with pension and health care go. I've got 19 more years to go before I'm 55. But it would a great time to move the family as my oldest is only going to be in 3rd grade.
Do any rocksliders work for any power plants? I have looked online, but firsthand knowledge of companies is always better. I've got about 2 years before they start cutting people, so I have plenty of time to decide what's right.

 

[LifeAndLiberty]

Nuke Man, I'm not in the plants since we are deregulated here in CT and they sold the plants off, but I'm a utility guy. I know people at Millstone in East Lyme, CT. Thats owned by Dominion though.... are you ComEd or Duke?

Can you draw your pension at 55, or would you need to find employment between 55 and 60-something? Does your company offer retiree health care, and does it kick in at 55 if retired and would it cover the wife and kids?

Many people I work with have been looking into leaving the company, but their don't have their numbers. The difference between having your numbers and being one day shy is immense. It's probably also worth noting that if you left the company, the chance of finding a pension elsewhere may be like finding a unicorn. Most utilities I am aware of have dropped the pension plan for new hires. You probably have enough time to catch up in the form of a 401k, but man, those defined benefit pensions are really something to hold on to. If it will cover yours and your wife's medical upon reaching 55, I think you'd be crazy to leave. I was hired on post-pension, so I've got a 401K with a few perks. I'm actually interviewing with a state/town type job this month because it still has a pension and it is rumored to include retiree medical after hitting 20 or 25 years of service.

So I guess my advice would be to start looking for jobs out west and see if they offer pensions for new hires. You can interview and see if they will bridge your pension with your current employer or something to that effect, but generally they won't because the economy is terrible and there are more people looking for jobs than there are jobs available so they don't need to make such offers. I think you might be leaving behind something you won't be able to find elsewhere, and you'll probably find you'll take a huge nut on your expected pension if you left your company.

Just my 2 cents.

 

[Nuke Man]

Yes, I can collect my pension at 55 plus they pay an extra social security payment until I can collect that. And yes full health insurance at 55 also. My pension will be plenty to live comfortably on and I have a company match 401k that in all reality I won't even have to use. I it's a pretty good gig but Illinois is getting stale! I work for Exelon who also owns ComEd.

 

[Calbuck]

I work in hydro power plants in CA and the defined benefit pension is the only thing keeping me in this state..I've looked at a lot of other utility companies out of CA and find it's really not worth the trade-off to leave my current employer. Seniority helps also

 

[Shrek]

Your compensation package is golden ! As a self employed person I can tell you that you are living in a financial padded room and the world outside is full of sharp and hard edges. I'd have to have something really good lined up before I'd leave what you have.

 

[LifeAndLiberty]

Yes, I can collect my pension at 55 plus they pay an extra social security payment until I can collect that. And yes full health insurance at 55 also. My pension will be plenty to live comfortably on and I have a company match 401k that in all reality I won't even have to use. I it's a pretty good gig but Illinois is getting stale! I work for Exelon who also owns ComEd.

Illinois and CT are the two states most people are leaving in the nation, so I feel your pain big time. I've lost just about a third of my friends who left the state for better opportunities, less taxing states, better weather, or due to gun rights being constantly trampled on here.

To have a pension that you can draw at 55 that covers retiree medical is beyond huge. Don't forget, even if you live out west, you still gotta work and that will prevent you from getting out as often as you may think you could get out and enjoy it. I may get flamed for this one, but living in liberal states does have the perk of less competition in the woods. When I talk to guys out west about how liberal CT's deer season is, they can't believe it. Unsure if Illinois is the same way. You probably have solid paid time off too. I would try and prioritize trips out west with your PTO, maybe see if they'll let you take an extra week off unpaid if you feel the urge to get out west more often.

They'd have to pry that pension from my cold dead hands!

 

[Gobbler]

You are sitting on the equivalent of the retirement lottery, and you've won. Assuming there is nothing more to consider, just pick the best location for your family and put in the 19 years. For the most part, those plans are no longer available. However there is a bit more to consider - what can go wrong. Just make sure the plan benefits you expect can't be changed or taken away between today and year 19. For example, what if the company gets bought out, can the new company change your plan? They will definitely want to. And the other obvious risk is if your company goes out of business. If those are risks you are comfortable taking then this is the golden ticket - you need to stay and cash in. People would buy your spot if they could!

 

[Nuke Man]

I work for the largest nuclear fleet in the US. I don't think anyone would buy us out. I also am "protected" by being in a union so it would be difficult to take the pension, but not impossible. The reason my plant is closing is purely political. Illinois is really screwing us over.
Paid time I currently get 4 weeks paid, I will get another 4 days next year. Looking like I'm going to be doing my time in Illinois. Been a crazy few days for sure. I will say the company is doing everything they can to make sure we are getting taken care of. Even offering some guys early retirement packages to make sure us younger guys can transfer to the plants we want.
I do appreciate everyone's input!

 

[WyoBowhunter21]

Well from a younger guys point of view...I work in the oil and gas industry in Wyoming and I would love your gig. The pay is not bad for oil and gas but with my 401k I will be lucky if I can retire at 66. We cannot draw our 401k until 65 so that sucks too. I am always looking for other job with the state or local government just for the retirement. If I were you it wouldn't even be a question to move with your company.


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[gelton]

Pensions are great things but are quickly becoming a relic due to market conditions. Those that have one are lucky that they do. However, they aren't here to stay and will they be there when you need them? In the past pension funds could invest in "safe" investments like bonds and cd's ar a guaranteed rate of return. However, now thanks to the Federal Reserve and our 19 trillion in debts those safe investments aren't enough to keep the fund afloat. Pension funds are going broke all over the United States:

http://www.caseyresearch.com/articles/why-your-pension-could-be-reduced-to-virtually-nothing

 

[5MilesBack]

Pension funds are going broke all over the United States:

That checks out.

I'd do everything I could to make sure you have something decent set aside beyond the pension.

 

[Craig4791]

That checks out.

I'd do everything I could to make sure you have something decent set aside beyond the pension.

I agree. I actually have a really good pension as well but I honestly have a hard time believing it's going to be there 25 years from now...

401K, Roth IRA and my personal investments is what I'm counting on. Social security and a pension will be nice if they are around but I highly doubt it.

 

[LifeAndLiberty]

I work for the largest nuclear fleet in the US. I don't think anyone would buy us out. I also am "protected" by being in a union so it would be difficult to take the pension, but not impossible. The reason my plant is closing is purely political. Illinois is really screwing us over.
Paid time I currently get 4 weeks paid, I will get another 4 days next year. Looking like I'm going to be doing my time in Illinois. Been a crazy few days for sure. I will say the company is doing everything they can to make sure we are getting taken care of. Even offering some guys early retirement packages to make sure us younger guys can transfer to the plants we want.
I do appreciate everyone's input!

Amazing. The company I work for went through a merger and the new company walked guys out a month before they had their numbers. No "3 and 3" or bridging years of service to start a pension, no nothing. Having a private pension from a company such as yours is not as risky as a government pension, although there is always a constant rumor at least in our company that management is going to "freeze the pension." Sounds like you work for a great company who is taking care of their employees. I'd stick it out if I could.

Don't forget folks, your 401ks are subject to the same market forces. Sure, you don't have to worry about the company or government saying "sorry we cant pay you" but you do still have to worry about major market retractions.

 

[IdahoElk]

Why do you want to live out west?
Judging by your post it seems money is more of a concern than lifestyle,if that's the case I would continue to make great money at your job and take a few long vacations out here every year.
I chose lifestyle over income when moving to paradise 25yrs ago(Sun Valley Idaho) and while the hunting, fishing is awesome and living in a small mountain town is beautiful,making money and raising a family is very,very difficult.

Here is a nuke plant within a 1 1/2 hours of me.
https://www.inl.gov/

 

[5MilesBack]

Don't forget folks, your 401ks are subject to the same market forces. Sure, you don't have to worry about the company or government saying "sorry we cant pay you" but you do still have to worry about major market retractions.

Historically the markets have always recovered from major market retractions. In fact, I always use those "retractions" as a bigger buying opportunity to help the entire portfolio get back to where it was before the pullback, faster than it would have without new investments at a lower cost.

The one thing that worries me just a bit more is a major "currency" crash. When our currency isn't worth the paper it's printed on, then we have a major problem. Having tangible assets will help in that case.

 

[gelton]

Historically the markets have always recovered from major market retractions. In fact, I always use those "retractions" as a bigger buying opportunity to help the entire portfolio get back to where it was before the pullback, faster than it would have without new investments at a lower cost.

The one thing that worries me just a bit more is a major "currency" crash. When our currency isn't worth the paper it's printed on, then we have a major problem. Having tangible assets will help in that case.

Correct. A good friend of mine is the head of global research for the 12th largest pension fund in the world - Texas Teachers Retirement Service. He has written several books about gold and silver - I happen to be thanked in the acknowledgements - Buy Gold Now, Hard Money, and the Silver Bull Market. He explained how the fund needs 7-8% to continue paying what had already been promised to retirees.

20-25 years ago you could buy bonds at 5-6% and only needed 2% from stocks. Also, in the 1970's it wasn't uncommon for a fund to hold as much as 25% in gold and silver. When Nixon closed the gold window and paper money took over as if it was as good as gold - holding gold and silver became looked at as archaic. Now his fund - the TRS has a $250 million gold and silver fund (and its the only one in the world that has such a fund) - it represents less than 1% of their total assets.

His theory, which is the basis of his books, is that soon, it wont be uncommon for funds to hold up to 5% of their assets in gold and silver. If this were to happen, because of all the "funny money" or monopoly money created and due to the vast amounts under management of these funds, that if they were to invest 5% of their funds into gold for instance, it would consume the worlds mining supply for 75 years. Hard to imagine we were somehow tricked to think that paper is wealth.

 

[Nuke Man]

Well yes money is definitely a concern. I have 4 kids and I prefer my wife to stay at home. But most of all I don't want to work until I'm too old to enjoy retirement. I've looked at a few places in Montana and to me it appears there is a pretty high cost of living. House prices are much higher than in the midwest.

 

[Shrek]

What areas are available for you to transfer to in Illinois ? I did a quick look and it's a long days drive from central Illinois to central Colorado or Wyoming. If you can string together four days off then yiu can do a quick scout trip and western Illinois is not the chithole that Chicago is. Yes the laws are all screwed up by the urban center writing for the whole state but rural Illinois isn't bad and close enough to recreate in several states. Try to find a reasonable place that you can keep your income and pension but not be stewing in Chicago's sewage.

 

[Nuke Man]

Ya I'm on the north western side of Illinois now. I can transfer to a plant about 1.5 hrs east which puts me about an hour from Chicago. I've lived here in Illinois my whole life. I'm headed to central Colorado in July for a 4 day elk scouting mission. It's about 15 hrs from here.

 

[billynobear]

What do you do at the plant? Operator? Electrician? Instrument Tech? Engineer?