I realize this post only applies to employees who were hired before 2008, because they've changed the way our pension is being calculated going forward. I just got around to looking at my new pension estimate for retirement and it decreased 57%. My pension was the one last thing I've been holding on to; really the only thing that was truly keeping me here. Now seeing my new pension number, knowing that giving 20+ more years would only add a measley amount - I have no reason now. Cheers to a new year and hopefully a new job!
14 replies (most recent on top)
I’m still in shock. After years of looking at that number and planning around it, that 56% drop in monthly pension benefits after 27 years with the bank hits hard.
@154 yes thank you! I left and came back. So this makes sense
@14s I think you are correct, I am a 19 year employee who left and came back. What you describe is exactly my situation, I only have the cash balance plan.
@148 You could have either elected to be under the Cash Balance Plan (which is now the plan they've moved everyone to) or perhaps there was a lapse in your employment? If you were hired before 2008 but ended employment before becoming vested and then rehired after 2009 you'd be in the Cash Balance Plan. Or maybe started as a contractor then became 'official' after Nov 2009? Guessing you just opted for the Cash Balance Plan though.
I might have missed something. 20+ year employee here and I have the 2010 Cash Balance plan. Did something change? I don’t see any differences in mine?
Yup projects dropped almost 1000 a month. Nice FU to long term employees.
I calculated mine at approx 25% decrease with the new plan. FU USB.
@fs yes
What happens to the pension for people that were recently “restructured” out? Does the number we were given from being there 20+ years stay the same for when we are able to collect on it at retirement age?
Getting long term employees to quit was the goal with the pension change. It’s only about money now. Just remember that when you find yourself working long hours and weekends. You get nothing for working harder than the bank deserves.
Have to pay those shareholders. That’s the only people that the management committee value other than their own salaries. Employees and customers have no value to them.
A few things:
the liability did not decrease because the pension was 100% funded (or near 100%). What they will save is actuarial contributions for each person going forward less what they pay on the cash plan.
The formula, which for people that earn less than social security cap is basically: .012 x five year average salary x number of years.
This is frozen. Your old projections were probably adding years and higher average salary.
It is likely they did this to encourage people like you to not stick around due to the pension. In my case I rejected job offers from other banks (years ago) because of the pension. It might also encourage older employees to leave.
57%! Holy cats!
Yes they completely sc--wed anyone that was on the old plan in order to save millions. Will be interesting to see at earnings how much the liability decreased. Total slap in the face