Megacorps that offer pension?

[brett]

Just because a company has a DB pension today does not mean that it will be there in 10 years. Same for DC matching contributions. The employer could be matching a 5, 7, etc. today but pull back to 3 OR in the case of some have a variable DC match based on profitability. The exception to this would be civil service/public sector employers.

Besides, most people starting work today will have 5-7 employers over the course of their working life.

Today is not guarantee of tomorrow.

 

[Texas Proud]

I think a lot of posters are missing that there are a lot of large companies and even small ones that offer a 'pension'.. it is a defined contribution plan but still a pension none the less...


Also, look at the 401(k) plan... some have really good matching so you do not need to worry about a pension plan...

 

[samm]

You can check pension here

Any megacorps that offer pension? Any FAANG companies that do? Asking for a very young friend. Thanks!

Anyone can check on line to see if a specific company has a pension at this site: https://freeerisa.benefitspro.com/

This site republishes the DOL/PBGC Form 5500 annual required disclosures.
Caveats
1. Many companies listed on Free_erisa have frozen pension plans that new hires cannot access
2. Many plans are cash-balance plans that offer far lower benefits than traditional fixed annuity plans
3. The number of corporate pensions has fallen from over 100,000 in the early 80s to about 23,000 now (PBGC annual report, supplemental tables).
4. The number of corporate plans with 250+ members was only 4668 in 2019
5. Why? ERISA regulation + increased life expectancy + changed employer attitutudes towards employees.

https://www.pbgc.gov/prac/data-books

 

[38Chevy454]

It would be rare to find a private company that has defined benefit plan these days. I know from my past megacorps that they have all eliminated the DB plans and now have defined contribution plans only for new employees. As to the older employees who were on the DB plans, they were either frozen and switched to DC for the subsequent years; or in less common cases the grandfathered DB plan was continued for the older employees.


I think the best current place where there is any real DB type plans is in local/state/gov't type jobs, and not for all of those jobs. Cities, states, and the Fed are figuring out that they do not want the continuing liability. Since DB plans also include medical as part of the plans fairly typical, that is another area where the continuing financial liability is being felt.

 

[adrift]

You googled too quickly. Look at the Yahoo link someone else provided about the 14 companies (as of 2019) who still had them, not the IBD link about the companies that still have a pension liability. IBM, for example, still has a pension on the books for those grandfathered in, but doesn't offer one to new hires.

The Yahoo link you refer to did not mention IBM. If I remember correctly, IBM grandfathered in employees pensions in 1999. Then in 2004, it lost a lawsuit brought by employees from Burlington, VT who were screwed over by what IBM's obligation was. The lawsuit applied to all grandfathered in employees.

 

[street]

In my area, I know teachers, state, Gov., and electric utility company still offer pensions to new employees.

 

[RunningBum]

The Yahoo link you refer to did not mention IBM. If I remember correctly, IBM grandfathered in employees pensions in 1999. Then in 2004, it lost a lawsuit brought by employees from Burlington, VT who were screwed over by what IBM's obligation was. The lawsuit applied to all grandfathered in employees.

Yes, that was my point. Someone else had googled and claimed IBM and others still have pensions, apparently from just quickly scanning the google result snippets. Actually reading the links shows that IBM once had a pension, but as the Yahoo link says, no longer does.

 

[LarryMelman]

I think the best current place where there is any real DB type plans is in local/state/gov't type jobs, and not for all of those jobs. Cities, states, and the Fed are figuring out that they do not want the continuing liability. Since DB plans also include medical as part of the plans fairly typical, that is another area where the continuing financial liability is being felt.

A generation ago, "everyone" got pensions and retiree medical benefits.

A generation from now, maybe "no one" will get them.

But the generation retiring now has an awkward divide. Corporate workers don't have these benefits (or had them frozen or cancelled during their careers). Meanwhile, the gov't and military workers generally act entitled, as if they "deserve" them (that surely is the vibe I get from those that I know).

 

[stepford]

Meanwhile, the gov't and military workers generally act entitled, as if they "deserve" them (that surely is the vibe I get from those that I know).

Uh oh, ER.com third rail alert.

 

[LarryMelman]

Uh oh, ER.com third rail alert.

I don't know what that means. I do not mean to cause a kerfuffle, and the mods can delete it if they wish, but it is my observation and while I suppose I could re-word it to be more "gentle", I think it's pretty accurate. For example, every time I've tried to ask my public sector friends if they feel their pension is secure, because mine over the years in the private sector definitely were not, the discussion turns nasty and defensive. I know that others on this site have seen it happen too. I'm not asking for it to happen here, I'm merely pointing out that it does happen ... which is very relevant to this discussion.

And again, it is just a temporary phenomenon. By the next generation, things will be "equal" again with no one having nothing.

 

[stepford]

Discussion of federal pensions isn't against any rules, but in my experience, any suggestion that government and particularly military pensions are anything less than sacrosanct will bring a swift chorus of denunciation around here.

 

[Midpack]

I'd be shocked if any young person starting today actually collects a defined benefit pension upon their retirement 40 years from now. I'll be dead by then, of course. A quick Google search brought up some short lists of companies. Mainly no surprises - IBM, Southern Company, Boeing, 3M and the like.

Dear Old Dad retired from one of the Class A railroads in the 80's and got a pension but no COLA. Mom never worked but she got her own spousal pension from the railroad. it was such fun seeing Mom with her own money which Dad could have no say over how it was spent.

Ah, those must have been the days!

+1. Although there are a few, I’d also be shocked if a 20- or 30-something today could expect it to survive until they retire. If you want a pension, work in the public sector, then maybe better odds...

 

[RobbieB]

Back when I was young and job seeking one thing I was told was NEVER inquire about the pension plan during the interview.

 

[TNBigfoot]

My company ended new contributions to the defined benefit plan in mid 2000’s. They previously contributed 4% and replaced it with a 3% additional contribution to the 401K plan. So this was spun as a way to grow the 401K and I guess it it was good if invested correctly. Basically they saved 1% contribution and shifted risk to the employee.

 

[Finance Dave]

IMO even if you get hired by a MegaCorp that has a DB pension now, there is no guarantee it will stay. My advice would be to work for a company that is "up and coming" rather than in an industry that is declining...then they will have to keep competitive benefits to keep employees.

 

[indiajust]

I certainly hope not. The last thing i want to do is trust megacorp to be there for me 50 years later. I much prefer the money in my own account. Promise me nothing. Show me the matching contribution. Had I relied on pensions, I would be bankrupt and gone, like the many megacorps I worked for.

 

[2017ish]

A friend who was a relatively high level exec just retired from Shell (in his late 50s). He has an enviable pension. Haven't seen anything regarding that company/group getting rid of pensions--yet.

Agree with others that one shouldn't stake one's career choices on this type of thing continuing.

 

[2cheap2eat]

Nowadays, I've only heard of Gov't employees and teachers (both paid by taxpayers of course).

I worked in Telco years ago and they froze the pension after dot com bust, around 2004-ish. I'll get a small amount, but no COLA. They offered to buy out at low interest assumptions, I've declined their low ball offers.

 

[TriumphTR3fan]

Any megacorps that offer pension? Any FAANG companies that do? Asking for a very young friend. Thanks!

Corporations frequently aren't well suited for pensions. Take a look at how many large corporations are still in business since 1950. Acquisitions, mergers & bankruptcies take a toll. So does the constant drive for profitability. No one really cares about what had been employees creating value, but then turn into a long term liability.
Government entities are much better suited as they aren't likely to go out of existence for very long periods of time. Plus they don't exist to make money for shareholders or owners. You won't make as much money during your career but there's better (not perfect) j*b security. If I was looking for employment in government I'd look at either state or federal agencies. States can't go bankrupt & walk away from their pension obligations. Federal government is even less likely to abandon their former employees. Thinking about this sort of makes me want to see a universal retirement for everybody not based on employment history. Other countries have it. Before someone comments I know there is Social Security. It really has morphed into a safety net program. It isn't large enough. Some employees aren't covered. For many others it's just a supplement.
I hope your friend finds a great plan.

 

[AirOps]

Chasing after pension is like stock picking. Lot of factors are at play in the long run and one needs to be extremely lucky to fully realize meaningful pension benefits these days.

I was always lucky in life.

When I think back, I made my own luck in life.

 

[The HalfBreed]

Most, if not ALL federal jobs. With COLA's as well.

The new FERS (Federal Employment Retiree System) combines A 401K with a 5% match, 1% pension of your average high-3 year salary per year (~30 yrs = 30%) along with Social security to boot.

If they carry basic life insurance into retirement, they pay for it until age 65, then it becomes free for life. However, it goes down by 2% per month until it reaches about 25% of the original total, which takes approx. 3 years.

So, if the life insurance, which is usually Salary, rounded up to next 1,000 and 2,000 added onto it (standard) may become, as an example, $100,000 in 25 years, they could get 100K in life insurance, which becomes free at age 65, goes down to ~ 25K at age 68, but is free for life.

Not a bad deal. That's the deal I currently have and I love it. However, I was under the older CSRS retirement system, but quite similar overall.

 

[2cheap2eat]

Most, if not ALL federal jobs. With COLA's as well.

The new FERS (Federal Employment Retiree System) combines A 401K with a 5% match, 1% pension of your average high-3 year salary per year (~30 yrs = 30%) along with Social security to boot.

If they carry basic life insurance into retirement, they pay for it until age 65, then it becomes free for life. However, it goes down by 2% per month until it reaches about 25% of the original total, which takes approx. 3 years.

So, if the life insurance, which is usually Salary, rounded up to next 1,000 and 2,000 added onto it (standard) may become, as an example, $100,000 in 25 years, they could get 100K in life insurance, which becomes free at age 65, goes down to ~ 25K at age 68, but is free for life.

Not a bad deal. That's the deal I currently have and I love it. However, I was under the older CSRS retirement system, but quite similar overall.

That's a pretty sweet retirement package nowadays. The life insurance kicker is just a bonus, haven't heard of that before.

 

[Vacation4us]

People are always jealous of what they perceive others have and they don’t. Government employees and teachers have nice pensions. They aren’t Executive suite and they don’t earn the same level of pay but many begrudge their pensions as noted above.

I say get over it. Plenty of posters here have 3-10 million what teacher, cop, or other government employee makes enough to save such large sums. None that I know of.

We all make choices in life. If your happy with yours why begrudge others?

 

[ownyourfuture]

People are always jealous of what they perceive others have and they don’t. Government employees and teachers have nice pensions. They aren’t Executive suite and they don’t earn the same level of pay but many begrudge their pensions as noted above.

I say get over it. Plenty of posters here have 3-10 million what teacher, cop, or other government employee makes enough to save such large sums. None that I know of.

We all make choices in life. If your happy with yours why begrudge others?

I'm certainly happy with my private sector pension.
Been collecting since 2015. No COLA, or health insurance, but still very generous.

Even though the company itself is doing very well, I wouldn't be at all surprised if the pension was cut sometime within the next 5 years.

If/when that happens, they'll be no bail out.
That's the breaks, & I'm pretty sure that even with a 50.00% cut, I'd be OK.

In spite of that, I have to be honest & admit being irritated when I read stories like this.
*may have to disable ad-blocker to read*
https://www.duluthnewstribune.com/n...-public-pension-bailouts-keep-eye-politicians

 

[Safire]

People are always jealous of what they perceive others have and they don’t. Government employees and teachers have nice pensions. They aren’t Executive suite and they don’t earn the same level of pay but many begrudge their pensions as noted above.

I say get over it. Plenty of posters here have 3-10 million what teacher, cop, or other government employee makes enough to save such large sums. None that I know of.

We all make choices in life. If your happy with yours why begrudge others?

Interesting point. But as an example, an accountant working at a small company does not make in the millions, either, but they don't get a pension, either.

When people complain about what they perceive that others in their circle have, I simply think to myself that "life isn't fair". Ask me how I know.