Is our pension protected? If so, then I couldn't care less.
4 replies (most recent on top)
The insurance industry as a whole is done and has about 10 years! SF will still be in business, maybe, but just some kind of fringe company. The days of selling large amounts of life, home and auto insurance will be done shortly! Plus they have become so corrupt and top heavy, the regulators are closing in on them too. Execs have said it many times in calls, we sell a product that people can no longer afford! This does not end well and is not going to get better!
- This company is not “going under”.
- The pension is just fine.
Wrong, and same troll as always! It is guaranteed by the PBGC (government) if a pension fund goes insolvent or the company that funds the pension goes insolvent, then they are the reinsurance facility. The problem is that companies pay in premiums to this company, to fund it, and almost no companies have pensions any longer or pay premiums. If a company decides to do away with a pension there is a federally mandated formula that is used to determine how much you are owed. (used when all companies eliminated their pension plans over the years) In cases of insolvency, the PBGC pays out the pension but it is usually at a very reduced rate like .40-.50 cents on the dollar and in some cases nothing!!! Just do a basic search on this wonderful thing called the internet and you can find out anything you need to know. Go ask GM Delphi employees about a "guaranteed" pension. Like everything else in life, nothing and I mean nothing is guaranteed except death and taxes! You look at your annual pension statement on-line in your Total Rewards. They post the IRS required filling. It is fully funded for now but you can see the number receiving benefits is less than the number eligible for benefits! Oldest trick in the book, promise something you never really intend to pay or get out of it before the bulk of the promise/pension comes due!
It’s federally insured. But the company can do mandatory buyouts and fun fact, they can determine their own valuation and offer pennies on the dollar. If I were CEO that’s what I’d do. Mandatory buyouts. Cap it at 100k payout. Save the company so much money.