To any of you good folks who has the knowledge when VZ terminated the conventional pension they had back in the days. Is their pension only the contributions to a 401 K.
Thank anyone who can answer the above question.
8 replies (most recent on top)
OP, you're a little off in your assertion. The pension has never been terminated for the earlier generation union folks. They still get their pension, 401k and, if they live long enough, social security payments.
My 401k has a lifetime return of 200% in index funds alone. After about 25 years at 6% with equal match I am a 1 millionaire now with a bit more than a decade left to work and grow. I'll have over $2M after taxes when I retire and am grateful to Verizon for helping make it happen.
Just become a Director. Then you become a multi millioaire off of 401K matching plus bonuses which there are many of. I'll be retiring at 58 s soon as I can start pulling from my ROTH IRA and 401K. Thanks for the wealth Verizon.
My pension is separate from my 401k and it is a cash balance. I can see the balance but cannot touch the pension until I leave. It is simply accumulating interest. Money has not been touched as it hasn't gone down, if anything it is increasing.
In addition to what @sli+ stated, when you hit 55 you lose money in the cash balance plan every month because it is based on the mortality tables among other things.
Old-timer here. You are correct.
For former NYNEX/BA management employees who qualified for a pension back in the early 2000's, some were converted over to a cash balance plan depending on years of service. The cash balance plan was sunsetted also but the money allocated remained in your account. It earned little interest and you had no control over it. You regain access to use/annuity or invest the sum after leaving VZ. This was separate from the 401k contributions and no longer available. Some employees who qualified for a pension had healthcare coverage allocated also. Unfortunately VZ has discontinued all of this for current mg employees except 401k contributions. It may be different for execs/union who have contracts etc.
- Some long timers (if there are any left) could qualify for a pseudo pension. Otherwise it’s just the 401k