If your employer goes into liquidation, the pension scheme is not affected as the scheme is independent and has no direct connection to your employer's situation. You will only lose out on the pension contributions made by your former employer - the scheme itself is not at risk because the business has failed.
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I totally agree with the suggestion to run the numbers if you're thinking about retiring soon and taking your US Portfolio I pension as a lump sum payment. For my specific situation, I estimate that retiring in Feb 2023 will result in a nearly 30% reduction in the lump sum payment vs. retiring in Nov 2022. Other people's % reduction could vary based on their age.
Note that the monthly Portfolio I pension payment is calculated based on high 4 average pay and years of service and will not be affected by the recent rise in corporate bond interest rates (which are used to calculate the IRS Section 417e segment rates). If you're planning to take the default annuity form of payment the monthly amount will continue to grow as your high 4 avg pay and years of service keep increasing. (Unless of course 3M decides to freeze the pension or the PBGC gets involved.)
A previous post indicated that Empower handles the pension. Actually, Willis Towers Watson took over as US pension plan administrator on Aug 1, 2022. Empower Retirement became the plan administrator for the 401(k) on Jan 1,2022.
Google the PBGC Maximum Monthly Guarantee Tables to find out how much of your pension annuity is guaranteed. It is not 100%.
Excellent comment regarding pension lump sump consideration with regards to interest rate changes. Anybody eligible or near eligible and financially ready to retire should very seriously consider doing this by end of year. This is 100% valid.
Have heard of several financial advisors telling 3Mers to carefully consider their options before the end of the year. Empower - who handles the pension told me the pension was "in play" but couldn't say anything officially yet. I think pension changes are coming - but what? Not sure. Empower rep said Nov 30, 2022 is a "drop dead" date for retiring - at least anyone considering retiring in the next couple of years. The annuity payout will not be affected but the lump sum will definitely be negatively impacted. On Dec 1, 2022 the IRS Section 417e interest rates will be updated (the interest rates will increase) and the Empower rep said the Lump Sum is expected to decrease at least 20% and possibly much more. @1urx+1ixCov2b - I think the financial advisor you asked about is https://www.landmarkwealth.com/3m
Also, per the commenter "pension should be ok" above - not sure about those comments. Even though they had already retired years ago, the Delta and United pilots pensions dropped over 35% in 2002 when the Pension Guarantee Benefit Corporation (PGBC) gov't agency took over Delta and United pensions. I realize the 2006 Pension Protection act changed many of these rules. However, the often repeated claim that the pension is a legal contract that is untouchable - eh, not so sure about that. You might want to check with an expert about that... Considering 3M's unprecedented legal situation, anyone choosing the annuity option right now may want to "sleep with one eye open - clutching your pillow tight".
I am worried about how much 3M can change the existing pension if I haven’t retired yet. For instance, could they eliminate the monthly annuity option and only offer the lump sum payout? I heard an external consultant told someone to retire before the end of the year because 3M is “reevaluating the pension plan due to inflation.” Has anyone else heard that?
Only as long as they are fully funded. 3Ms is very high but not 100% fully funded.