I am a longer term employee who fears I may be part of the next round of layoffs and I’m not at retirement age yet. Several people on this site have mentioned a change to the pension plan for long term employees. Can anyone shed more light for those of us who may have experienced a change and not known it?
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@ch You are a troll.
Thank you for the responses, they have been very informative
I heard they are dissolving the pension
@OP if you are let go roll that money into an IRA somewhere else in a lump sum and let it do the work for you. No need to stand around waiting for payouts and things like that. Take the lump sum and invest wisely.
This is all rough examples, you will need to do your own research.
If you've been employed since pre-2000 you have a Legacy Cash Balance plan, employed in the 2000s you have a Legacy Fixed Benifit plan, hired in the 2010s you have a Current Cash Balance plan. The legacy plans have been frozen. You may have already switched from the legacy fixed plan to the current cash plan as that was offered on the 2010s. People that didn't switch then where switched last year. You still get all your benefits, and you can choose when to take them. You can leave, be fired, get severance and all these plans are yours and you can/should wait to take any benifit from them (the cash balance ones you can rollover to another retirement account). Start digging in HR for all the documentation, there is also a way to model what you pension is worth now vs later. What some people may be gripping about is that if you were a holdout on the legacy fixed being for plan, moving to the cash balance plan is not as lucrative and for some that was the signal to retire since the fixed benifit is going to pay out the same whether you stay or you go and collecting a few years in the cash balance at this point may not be worth it.
You still get your old pension plan if you already have it.
It's just that each year going forward the added contributions being made to the pension payment you will receive are not as great as they were. So now each year you work going forward less is being contributed to your plan.
I believe the old pension plan went away for new hires in 2015(maybe earlier than that) however employees who were currently working at the bank could stay grandfathered in and not be forced to switch to the new cash balance plan. Starting this year, the company quit funding the old pension plan and those who were grandfathered in no longer receive any future benefits for that plan and will start earning benefits for the new cash balance planning… just another way for the company to save money as the old pension plan had a much higher payout and rewarded longevity with the company.