I took early VSRP and plan to start drawing pension in 2024. Does anyone know if pension is safe if there is a bank run and Truist has to be taken over by the Fed?
I always heard from Kelly King talks that the pension was fully funded.
11 replies (most recent on top)
US Bank will axe the pension once it buys this bank
Yes, your pension is safe! But, food for thought. Your pension will reduce your social security, you paid into both! This is a fact! Social security will reduce your benefit because of the pension! So, if you are entitled to $2500 a month under SS, and you are entitled to $1200 under pension. Guess what? You will still only get $2500 total! Thank goodness to us congress/senate passing regulations to knee cap the SS you paid for!
this statement is NOT TRUE
The only way that a pension will reduce SS is for government (federal, state, local employees) that are in a defined benefit pension. Which BTW is much more generous than Truist. Employees in the private sector that have a defined benefit pension such as the one Truist will not have their SS at all. The government pension offset was put in place to stop government employees that are retired from getting a check Bigger than what they made working.
Yes, your pension is safe! But, food for thought. Your pension will reduce your social security, you paid into both! This is a fact! Social security will reduce your benefit because of the pension! So, if you are entitled to $2500 a month under SS, and you are entitled to $1200 under pension. Guess what? You will still only get $2500 total! Thank goodness to us congress/senate passing regulations to knee cap the SS you paid for!
It was thought that once KK was gone that BillnBeau would ax the pension. The additional funding plowed in is likely a tax event but could also set the stage for shutting it down by buying out participants with cash or annuities.
Why would you add more assets to an overfunded pension plan?
Are they getting prepared to dissolve it?
This was from press release on 3/1/23
Truist Financial contributes $1.3 billion to pension fund
Truist Financial Corp., Charlotte, N.C., disclosed discretionary pension contributions totaling $1.3 billion that have been completed since the beginning of 2023 in its 10-K filing with the SEC on Tuesday.
The commercial bank also disclosed it made discretionary contributions to its pension plan totaling $431 million in 2022.
The new contribution, which Truist said was completed in the first quarter of 2023, comes even as its Truist Financial Corp. Pension Plan had a funding ratio of 157.2% as of Dec. 31, up from 156.8% a year earlier, according to the filing.
Yes, was overfunded. Thankfully CFO cant get to that cash hoard
There is a monthly maximum that the PBGC guarantees that is dependent on age if your pension is less than 4K a month you should be fine Kelly’s monthly however might be problematic
Thanks to the previous 2 posts about the PBGC! Good info!
The PBGC site confirms that the Truist pension plan pays into the insurance coverage, so you and other retirees should be good.
It should be. The feds can take over the pension and wind it down.
https://www.pbgc.gov/about/faq/pg/general-faqs-about-pbgc