Retirement wave to hit GE Lynn plant

LYNN – Lynn?s General Electric aircraft engine plant will likely see upward of 200 and possibly more workers retire by year?s end, including many who accept early retirement packages, GE Lynn Spokesman Rich Gorham recently told The Item.?While we don?t have a specific number (of pending worker retirements) at this juncture, we always have a cadre of employees who retire at yearend,” Gorham wrote in an e-mail reply to an Item inquiry. “This year, in addition to natural attrition, as part of the recently ratified GE-union contracts, two early retirement options will be made available to long-service union workers who meet specific criteria (years of service, age), who are interested in retiring and who rank high enough among their national peers.”Gorham added, “Whereas Lynn is one of GE?s more ?seasoned? manufacturing workforces, it is likely that we will have quite a few who consider these options, and thus 200 retirements is possible.”He continued, “It is likely that a certain portion of these jobs will be backfilled depending on volume and other business metrics. In addition, we are also actively hiring experienced engineers to join our Lynn team, hoping to add 50-plus between now and the end of the first quarter of 2012.”Meanwhile, local certified financial planner and retirement advisor Mark Singer, owner of Safe Harbor Retirement Planning of Lynn and author of the recently published book, “The Changing Landscape of Retirement: What you don?t know could hurt you,” has planned two meetings on Oct. 26 at the IUE-CWA Local 201 Union Hall, 112 Exchange St., with Lynn GE workers who are considering retirement.Singer, who has worked with generations of local GE retirees, cautions those who accept retirement packages and buyouts to understand exactly what they?re accepting.?The biggest issue that the GE folks have is really their reliance on GE stock,” Singer told The Item last week. “So many of them are still heavily invested in GE stock and that?s the number one mistake.”GE, he said, “was a phenomenal stock in the 80s, but long gone are the days of $30, $40 and $60 values (per share),” he said, predicting a flat market for at least another three-to-five years. “The most important thing to do is to recognize the (market) cycle we are in. What used to work doesn?t necessarily work now,” he said. “And people should not have all of their eggs in one basket.”Singer advises during periods of a sustained bear-market, those planning to retire should diversify their portfolio and invest in non-traditional asset classes, including commodities, foreign currencies and long/short equity holdings.?All of these classes have very little correlation to traditional stocks and bonds and during the past 10 or 11 years while the market has been flat many of these classes have shown a positive return,” he said.Singer said he also wants to warn prospective GE retirees about tax penalties if they withdraw from their retirement plan (IRA or 401K) before age 59?. He said an IRS code allows people to withdraw from their plan before that age without the 10 percent federal tax penalty.The GE union worker forums on Oct. 26 are private, but on Saturday, Safe Harbor Retirement has planned a free breakfast Retirement Bootcamp from 9-11 a.m. at the Sheraton Colonial, Wakefield, with speakers, door prizes and health screenings. Pre-registration is required for the Saturday seminar, at www.55retire.com or call Eric at 781-599-2660.Singer?s book is available for purchase online, at www.yourretirementjourney.com.