E-mail came today to I assume everyone on the old pension. It seems like they are trying to get longtime employees (who would have large severance packages) to quit. It might work.
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@18q I’m a “her” whose been at the bank since 1990 🧐
@18q Kind of getting sc--wed, but the impact will be minimal. 35 years of service on the old pension will be substantial. So instead of 37 years, it will be 35 years plus whatever tiny amount accumulates in the cash balance pension over the next two years.
Like the previous reply said, the people on the old pension that were planning to work another 10+ years are getting sc--wed the most.
@18q she will get both. The sooner they retire the less sc--wed.
Are you able to collect both the Legacy Pension as well as the 2010 Cash Balance Pension?
I know someone that has been at the bank since 1990, and is nearing retirement in a couple years.
How will this change impact her? Is she getting super sc--wed? Will she be able to collect both the Legacy + the 2010?
@qq it freezes completely but the benefit is based on a formula, not earnings. It's the bank's responsibility to fund it enough to pay benefits. You start drawing between 55 and 65.
So my question, which I couldn't find an answer for on the company intranet or the large mailing I received today explaining everything: Does your OLD Pension FREEZE completely or does it earn interest?
@q5 it should not.
I have the old plan. I was let go earlier this year after 22 years. Don’t really understand if or how this will affect me, any ideas?
Correct, unless the eligible employee retires right now.
Bank in its financial prowess and business acumen over the last four years has transformed and lost its ability to fully fund a defined benefit pension plan so move it off to a cash balance plan and only pay a benefit or buy the benefit annuity when you have to.
Merry Christmas, Seasons Greetings, Happy Holidays from your Managing Committee and Board of Directors.
@a8 Did you mean to type "unless" the eligible employee retires now? That comment makes no sense the way it is stated now.
How does your pension plan affect the severance package you would receive? I thought the pension plan stops accruing, so either you take a lump sum and roll into a 401k or accept whatever payment you would receive at retirement. I think?
@dd that's more than zero. Ask anyone else how they would feel about getting an extra $300/month for nothing?
I was surprised. Work anniversaries are celebrated on calls. It at least appeared that loyalty was respected. I’m sure this change saves money somewhere and it now seems that is all that matters. That it comes at the expense of long tenured employees is just disappointing.
If you had the old pension it is still there, it’s just frozen. The only way it will increase in value is if you leave it longer, then pay out will increase. We will all get a hugely inferior cash pension for future years in exchange for our 17+ years of loyalty. I constantly use the “old” pension as a way to feel better about how this place has been treating us the last few years but even that is over now. This is 100% the bank trying to get old timers to quit, it’s actually quite clever, good game if slapping us all in the face is what you were going for. They want us all gone and can’t lay us all off and risk an ageism lawsuit. The clever part, is that there is no longer a benefit for anyone to stay now if they are within 2 or even 3 years of retirement, so they are hoping lots of us leave. If you take the time to really read the materials those making over $175K benefit from the cash pension…weird right? I also love the additional touch where they waited to announce it until after the TTUS, if you stay remember this for the next one.
Long time employee... I got the email too.
In "Total Rewards" I see 2 line items in the pension section:
- Qualified cash balance account
- Pension benefit.
I guess #2 ceases to accrue any further. There isn't much info to be had about each of these plans though - where can I find more details?
@d5 - I was on the old plan. I did the calcs. It’s MASSIVELY in their favor. My expected payout fell by 30%
Been here 15 years and my cash balance plan only accrued to give me $300/month in pension. I hope I don't spend it all in one place.
The pre-2010 pension was pretty good and costs the company about twice as much as the new one. So the overall retirement benefit will be reduced with this decision. When they gave us the choice to switch in 2010, I figured they would never take away the old one. The new CEO continues to surprise me!
Anytime there's a change you can safely assume it's not going to be in our favor.
I received the same email and there’s no doubt in my mind that the newer pension plan is more favorable to the company. Kind of a BS way to treat long time employees but I am not surprised in the least.
Yep, just another F*U to dedicated long term employees. I'm sure its legal but sure doesn't feel ethical. When they went to the cash balance plan '10 you could elect to stay in the old plan. I hate this place a little more every day.
This is a huge red flashing light. Get off this sinking ship if you can
We continue to nickel and dime our employees. But just wait for that payments transformation to take flight!
@a3 no more accruing benefits on the old defined benefit plan. We move to the cash plan.
Bank won't be obligated to fully fund the pension liability until the eligible employee retires now, gives the bank more flexibility in the funding of these obligation and optional payouts should the eligible employee elect to receive the benefit paid out over time in lieu of the lump sum balance. Wall Street analysts will be all over this regrettable employee action, let's see how the chiefs spin this slap in the face.
So, what did it say?