Has anyone heard anything about changes to the pension. What I have heard is after 35 years you can retire at full benefits vs waiting till 62. I have heard this from 2 sources anyone else hear anything
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Down a bit but not much, I bought a new office with the free $$$ from the Payroll Protection Plan, life is great. Let you in on a little secret scooter, life will still be great if State Farm implodes, always be ready with plan b and c.
Yeah most agents checks down because of rate decrease. I always wonder what would happen when the end comes near for them. And yes most are over extended and live paycheck to paycheck.
Have you ever wonder if the deal was to good to be true. Waste Management is hiring, better get your security license and bank ramp up blow hard. Now I know why they are trying to unload the waste.
@jqkm...I’m certain that no agent, let alone most agents, are confiding their personal financial situation to you. Stop making stuff up. Maybe get your own house in order.
Looks like there are no more substantive pension change conversations going on here.
If you happen to see an agent working at McDonalds in the future it’s most likely that he/ she own it and are training you to run the fry maker( third cycle of training for you as you can’t seem to get the hang of pulling the basket out when the buzzer goes off) how about you quit worrying about agents, we are the most resilient part of this sht show and will be just fine, most likely better in our new life as we are not waiting 3 weeks for you to do your damn job and maybe return a call. Yep, I know you.
Most agents don’t save the $$$ they spend it thinking the gravey train going to keep running the tracks fool. It’s going to sting when the transformation happens most will be ok others are going to have to apply at McDonalds for hourly employment if they qualify. Biggest problem with agency, we hired some agents that shouldn’t have been hired in the first place. Good Luck Clown.
Who are the ignorant fools who respond to questions about the pension by attacking agents......who are not included in the pension?
Agents save their own money. Most do it very well, thank you. Just like they plan and do everything else on their own because that’s how it works.
They don’t need retirement planning advice from people who can’t get over the loss of a toaster oven select a gift at Christmas.
Looks like someone lived off the gross and didn’t put anything away :(
Yep, we are all going to retire on pet insurance renewals. It may have been in the planning stage for years, want to guess why ? Cause calmer heads realize that will be the end of the farm as you know it. I say bring it, it could be fun to watch, as an agent I would fire 75% of my team, let the company handle the service in their own special way and milk it till it dies, either way I’m fine, it’s the companies book of business I just have it temporarily. I might even have my kid open an independent agency next door.
Plan on half renewal comp, 95% of current service being handed off to the policyholder center, been in the plan for years. Most agents have exhausted there AIPP, they didn’t send you the letter every year for the heck of it let hope they didn’t spend it. Agents that produce and integrate securities, banking, pet insurance and mortgage businesses into there plan will be ok.
Agency deal too good? What part, spending the first 5 years slaving for no pay, going into deep debt? Sacrificing time with wife and kids to build business? Dealing with the constantly changing plans and goals of the company? Has agency made me a multi millionaire? F yes, and I still consider myself to have been underpaid, I earned every dime. Don’t worry about us buying anything big junior, we can afford it. If agency goes away (it won’t) I will be laying on the beach of my choice watching the great looking waitress in a very small bikini bring me another drink while waiting for my massage. What is your plan b? Yea, I thought so.
It’s been a good run, hope it works out for the younger crew. At this point with no communication it doesn’t look to good for us. When they don’t say anything it means some change coming just like in 98.
Did you ever ask yourself if the agency deal was to good to true. Well times changing and taking payments and processing a few changes in your office coming to a head. Time to unload, don’t buy anything big
Wow, agent here, we really appreciate the heads up, we have never had to deal with a changing environment before Nostradamus.
It’s gone unless u live in a igloo. Same with SL VPA and other leadership positions. Better start getting some boxes togther. Agent changes coming hope they are ready too. It’s going to be a big reality check.
They can not get out from under their pension plan fast enough. The 5 to 7% returns are long gone and replaced with 1.5 % for long term safe instruments and now the pension plan IS NOW a concerning liability for this company. Throw in the competitive environment and the social environment with the virus and well doesn't end well for any number of employees.
Enough said.
Good points the thing I worry about is the PGBC is funded by all the Defined Benefits plan sponsors, which if I’m correct if all companies are are moving to freeze or drop plans, where is the money going to come from in the future a handful of companies are left??? They can’t even figure out how to pay disaster relief for the pandemic. I think cash out is good option.
A lot of companies are offering cash out options, most are based on age, which could be a very valuable option based on the time value. If you are younger let’s say 50 or even 55, it could increase your payout 10-12 times based on your current lifetime benefit projection. Another big plus you also have the ability to pass the account value to your family, if you die and select the 2/3 survivorship option, the cash out option would be advantageous in controlling the $$$.
If they do proceed with the buyout, crunch the calculator, I think you would be surprised. The current plan isn’t a viable option for SF weather fully funded or not.
While we are the largest insurer in the country, things could take a turn dramatically, especially if someone like Amazon moves into our space. We are in survival mode right now, all the changes aren’t because we want too. Sometimes having $$$
in the bank outside is a safe option. Ask a GE employee if they would rather have the $$$. I wouldn’t want to be on the there payout plan now and have to rely on the PGBC.
What do you mean by buyback percentage? Are you talking about cashing out of the pension if offered?
60 cents on the dollar would be a realistic number
What’s everyone hearing on buyout percentage?
I’m not counting on pension, both my wife and I are maxing out 401k’s if they offer the buyout we are ready, roll the reduced value and get what we get at this point. Significant changes coming, I just hope most aren’t just relying on pension, it going happen more rapidly because of Covid. That’s the way they roll. GL to everyone been a good run
Nah. Pension will be there as promised for those currently in it. Buyout option could be an option but i dont see forced anything.
Thanks for the finance lesson.
Folks SF gives you the information to do the research and any basic research on-line can help you understand the why.
SF Pension:
Yes it is over-funded and a reducing liability somewhat/not really.....but there is a catch financially.
Go look at the annual statement they send you every year and is posted on-line in your benefits. Just do the rough math. Per the pension statement....Around 20% of the people eligible to receive a pension with SF are actually receiving it now...so that means 80% are not... right? See most of the hiring at SF really took off in two eras. The mid to late 80s and mid to late 90s. So those are now the people that have the 20s-40s years of service with SF and there are still a ton of them. Just look at the homepage daily for retirements and years of service. This is why the pension is over funded. Basically very few people on the pension payout! They were able to reduce the future pension expense/payouts a ton by the last rounds of office closures and future state migration/aka the Mr. Ben DOVER! It forced thousands out early reducing the future pension payouts/liabilities. Now they are going to do it again and what's left over will get bought out. It is simple math, companies... all companies have basically shed their pensions for this reason. Oldest trick in the book, promise something 30+ years in the future then do everything you can to avoid paying for it!
Say you are a CS after 32 years and you retire at 62..No early penalty. Making $90,000 a year plus EIP. Say 100K for giggles. You are going to get around $4000+ a month for the rest of your life. Using the standard mortality table of 85 years old that is 23 years at $48,000 a year. That is $1,104,000!!!! Companies do not want to keep that expense around to fund for another 23 after you are gone! If you die early they/fund benefits but if you live longer they do not! Don't forget the survivor benefit too. Now multiply that but now for the almost 70K-80K people yet to start getting a pension. (with bigger salaries) it's in the billionszzzz and is a future liability they do not want. I can give you all the math you want on the tax implications, societal changes, reducing liability, future vs. present value of money in a defined benefit plan and all the other numbers to prove this point but I will just keep it simple. Pensions are a boat anchor around the neck for any company regardless of size, funding or any half-brained emotional idea or logic. Execs have different comp plans so no need for them to fret. Just be prepared with what to do without it or how you will invest your buy out. When this happens, who knows, but it will go away! Sorry!
It doesn’t matter if you freeze the DB, if you don’t have a job or have to interview for another position. GL to everyone
It’s all about the Benjamins
Just got word buyout coming 2021 with significant operational changes. I would buckle up for the next couple of years its going to get really crazy. Structural plan just changed from 5 year to 3 years. Good luck
Another ridiculous post. Anyone with actual knowledge of the pension or changes coming is so high up in the company they would never risk their high paying jobs, perks and benefits to come here and post something that is actually factual. Read the pension documents, with the elimination of the pension for new hires, the extent the pension is overfunded, the cap on pension liability and the pending reduction in liability as retirees die there literally is no reason left for the company to touch it or concern themselves with it anymore. They solved all of their pension concern by capping liability when they eliminated it for new hires.
New employees, starting January 1, 2021 will not get a pension.
Raise the COLA
I’ll take a buyout, I hope they freeze and give the option for a aggressive buyout, I think a lot would take it and would be better off in long run. It’s obvious they don’t want long term associates anymore.
Were these reliable, well-connected sources or just 2 people approaching 35 years of service hoping for the best?
I dont agree but you sure seem certain. Are you involved in makimg this decision or just a negative skeptic?
Freeze coming on pension they are cutting everything, not sure where u have been unbelievable.
Incoherent? Retain talent? That's delusional! Talent is sitting behind a computer and taking phone calls requires talent? I don't think so Tim!
What an incoherent post. Not sure what point you are making. Pension is well funded and a benefit that will retain talent. If it goes away then everybody will adjust but that is unlikely.
I’d love a buyout. The arrogance of people in systems and leadership is exhausting. They don’t work hard or really know what that is. I’ve worked 35 plus years and don’t have a pension of any essence. Yet long timers that lived at State Farm that have tons of vacation and 401k and pensions run the company and get paid more and more every year. Most have plenty of money and big hikes and dual incomes. It’s mind boggling.
Most people don’t have that luxury or eve having pensions or getting “buy outs” . Even after 50.
Remember that
Buyout and freeze coming big operational changes coming next year.
If they raise the minimum wage, McDonald's is competitive.
This comes up all the time and never happened yet.