I saw this in a previous post. Is it true? I hope not.
"we will also lose further accumulation to the pension."
7 replies (most recent on top)
The link below to the multi-employer pension reform act is predominantly, if not exclusively, for unions and trade organizations that represent multiple employers based on the Multi-Employer Pension Reform Act of 2014. https://www.pbgc.gov/prac/multiemployer/multiemployer-pension-reform-act-of-2014. That's NOT Truist. That’s why all of the entities listed on the website are union and/or trade associations.
None of that is to say that the bank can’t, or won’t, cease future funding of the pension, but it would not be on that particular website if that was the case. Additionally, most private pensions are guaranteed by the Pension Guaranty Benefit Corporation (a federal agency). Again, that wouldn’t preclude the bank from ceasing future funding, but protects vested pension benefits. PBGC steps in when a pension plan fails. https://www.pbgc.gov/about/how-pbgc-operates. The bank can't just wave a magic wand and get rid of its exist -vested- pension obligation, but it CAN curtail or eliminate future pension obligations, as they recently did for new hires.
For what it is worth, here is an article from last March that talks about the funding of Truist’s pension. At least as of that time, it looks pretty well funded. Lots of recent "retirements" and RIFs may have impacted the rations. I have no real way of knowing.
https://www.pionline.com/pension-funds/truist-financial-contributes-13-billion-pension-fund
** insurance will lose pension when sold
https://home.treasury.gov/services/the-multiemployer-pension-reform-act-of-2014/applications-for-benefit-suspension
Truist is not listed in the .gov tracker for pension benefit suspension requests
Do enlighten us. oh all seeing Google wizard…
"They haven’t done it, YET." Hmm...
Anyone with access to .gov (hint: everyone) can see where Truist is in the process of requesting a suspension to the pension obligation.
The pension can be frozen and then some sort of cash balance is given to those eligible in the future as a buyout. It will be worth much less than a defined benefit pension, which is the point, thanks to Rogers and friends. It will, of course, not affect him at all. They haven’t done it, YET.
That, combined with the already made cut to 401k matching, is a nice middle finger from executives to workers. Align your productivity, output, and work ethic accordingly.
They are not legally allowed to stop paying pensions of those currently collecting.
It wouldn't surprise me if it is true.
Also, I guarantee they are actively working to figure out a way to stop paying a pensions to all the former employees who have retired and are currently collecting a pension. And they WILL find a way. Evil always wins.