Reading this thread got me interested in checking up on the pension status at
my current mega-corp. The audit results from Jan 1, 2018 haven't been updated
yet. The boilerplate from my current employer's pension site:
The actuary for the XXX pension plans has completed the actuarial valuation for the XXX
Retirement Accumulation Plan as of January 1, 2017. For purposes of determining the
application of benefit restrictions under the 2006 Pension Protection Act, the funded
ratio of the plan as of January 1, 2017 is over 100%. This means there are no benefit
restrictions, including restrictions on the availability of lump sums, through September
1,2018. This is an annual process, and next year’s actuarial valuation will determine
whether benefit restrictions will apply after September 1, 2018.
• Actuarial Value of Assets (as of January 1, 2017): $7,318 million
• Funding Target (as of January 1, 2017): $5.806 million
• Funding Ratio (as of January 1, 2017): 126.05%
I have worked my entire career for various evil big-oil megacorps. I was
bounced around a lot by plant closures, asset sales and getting personally p-o'ed.
I have vested in 4 different mega-corp pensions. I have lumped summed out
of 3 of them from previous employers. A couple of years ago there were rule
changes that incentivized pension buy-outs. I took 3 I was offered.
My current employer's pension is still active and is structured the best of any
I have been vested in. It is a cash balance plan rather than a defined benefit
plan. Plan rules say I can take a lump sum pay-out anytime after severance
up to age 70.5, as long as the funding ratio is greater than 80%. I'll retire in
2020, but intend to leave the pension balance in. It grows at the greater of
5% or the 30 year treasury rate. Should the annual audit fail the 80%
funded test, the lump sum option remains open for 8 months. If I select to
annuitize it, it will happen at whatever the prevailing rates are at the time of
the request. The balance is part of my estate until withdrawn or annuitized.
Pretty sweet deal in an era of greedy mega-corps