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Old 04-27-2021, 03:46 PM   #41
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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.
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Old 04-27-2021, 03:49 PM   #42
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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.
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Old 04-27-2021, 03:51 PM   #43
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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.
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Old 04-27-2021, 04:04 PM   #44
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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.
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Old 04-27-2021, 04:05 PM   #45
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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.
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Old 04-27-2021, 04:24 PM   #46
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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.
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Old 04-27-2021, 05:04 PM   #47
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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.
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Old 04-27-2021, 06:39 PM   #48
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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?
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Old 04-27-2021, 07:52 PM   #49
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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.
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Old 04-27-2021, 10:05 PM   #50
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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.
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Old 04-27-2021, 10:08 PM   #51
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Thanks everyone for weighing in. I was quite suprised to learn that pensions are becoming something of a relic. What a pity!
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Old 04-28-2021, 05:17 AM   #52
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Retired in 2019 from a mega heathcare system after 40 years.
Hired in 1978 with a defined benefit pension.
Pension was converted about 20 yrs later to a cash balance plan for any employee younger than 50.
We were given a small lump sum to our cash balance account.
Mega corp continued to contribute yearly to cash balance based on years of service and age.
When I left, their contribution was 13% of my salary.
At retirement, I chose a lump sum rolled into my IRA.
i had also contributed for 30 yrs to a voluntary 403b plan.
Never made a high salary but these pieces have enabled us a comfortable life now.

New employees are offered a 3% match to a 401K plan.
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Old 04-28-2021, 06:06 AM   #53
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I read earlier this week that only about 22% of large companies offered Defined Pensions.

I worked 24 years for a major auto manufacturer, and we started out with a contributory (defined) pension that had company stock mixed in. But they also switched over to a 401K program many years ago. So I was fortunate to have both plans--contributing heavily into the 401K and playing the equity markets.

The younger employees didn't have the luxury of the traditional pension, however.
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Old 04-28-2021, 06:21 AM   #54
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My situation was interesting. The Megacorp that I worked for had a defined benefit pension plan that they 'froze' around 2000 (no more accruals under that plan). For older workers such as me you had a choice of the old plan (at the old levels) vs. the new 'annuitizable cash plan' (cash amount calculated off your years of service and salary history). I was considering retiring in 2003 and needed to work another 4'ish years before the new plan was a better deal.

What was interesting is that the company had, in the past, made occasional COLA adjustments up (very occasional, but still). And these had been done based on your retirement date. There was every reason to believe that they would no longer do that (and they have not), but if they did it would be based on your retirement date. So I could retire in 2005 instead of 2003 but that would be on the old plan (same 'old plan' retirement dollars in both cases). However if they ever made another COLA adjustment working longer would actually reduce my retirement.

I retired in 2003 (I would have made that choice even without the COLA consideration). But it was an interesting scenario.

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Old 04-28-2021, 06:47 AM   #55
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I know that at least one of the companies from the web search in one of the first posts have a pension for people who started before 2009, so yes they do offer a pension, but no new employees are eligible for it.

They instead offer a 401(k) with a 5% $ for $ match plus a 3% retirement contribution.
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Old 04-28-2021, 07:46 AM   #56
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Alphabet (Google) does not have a pension plan.

But does have a lucrative 401k, HSA and Stock Grant program.

No knowledge of the other FAANG companies.
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Old 04-28-2021, 08:19 AM   #57
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I know of no electric or gas utilities that still offer pensions to new employees. Most of them have plenty of employees that are still on pension plans having been grandfathered in, so they are still listed as “having” pensions. It WAS the primary reason I stayed with mine as long as I did. I should easily see over a million dollars, perhaps 1.5M, from them over the course of my retirement. (Over $150k so far) IMHO, it was well worth it. It really is a pity they got out of them. They seem to know what they are doing, being 110% funded. It was such a major hiring point for good talent. Now, it makes little sense to work for what could be a lower wage, with stability being the only real selling point.
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Old 04-28-2021, 09:18 AM   #58
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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.

As an accountant, who worked in the same mid-sized company for 14 years of my career, I had a different experience. No pension. Only $300/qtr employer 401k contribution (no matching) most quarters, but not all. BUT they did give equity to every employee. NQs at first, an ESPP program, and later RSUs. By year 3 of my employment I was able to realize additional income equal to 50-100% of my base salary every year there after. I saved most of that for my ER at age 50.

My point is not to brag, but to highlight that an average employee working in a high-tech company (you mentioned FAANG in the original post) can make enough through equity to fund their retirement without a pension.
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Old 04-28-2021, 10:09 AM   #59
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As an accountant, who worked in the same mid-sized company for 14 years of my career, I had a different experience. No pension. Only $300/qtr employer 401k contribution (no matching) most quarters, but not all. BUT they did give equity to every employee. NQs at first, an ESPP program, and later RSUs. By year 3 of my employment I was able to realize additional income equal to 50-100% of my base salary every year there after. I saved most of that for my ER at age 50.

My point is not to brag, but to highlight that an average employee working in a high-tech company (you mentioned FAANG in the original post) can make enough through equity to fund their retirement without a pension.
How many people end up working for the govt or a FAANG company? And what exactly is the difference in qualifications between a CPA working for - say - the US Treasury or the State of Indiana or Miami - Dade County or the City of Sacramento or a mid-sized private ABC Inc or Apple?

Furthermore, even among megacorps, the FAANG companies seem to be extreme. Companies like IBM (for example) - which used to be considered "MEGACORP" - aren't the same as FAANG. Has IBM's stock done so well that an employee could have recouped his or her base salary each year through vesting stock options? I don't know but I am guessing not.

Nearly every employee working in FAANG (and I'll add in TSLA, to the mix) - regardless of nature of work - appears to end up very rich, making the benefit of a pension (or lack thereof) irrelevant.

The choice for new workers (such as my young friend for whom I posted the thread) or for those looking to do better financially in their careers now appears to be to either work for a govt agency or work for a FAANGT, none of which probably need as many equally qualified workers as are seeking jobs.

Life aien't fair. Again, ask me how I know.
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Old 04-28-2021, 10:22 AM   #60
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Many non-profits also still offer pensions but the pay is generally far less than commercial companies. Making the big bucks and investing wisely will provide the best security. Even if a company offers a pension now, nothing stops them from discontinuing it so if I were young, I wouldn’t make this a criteria for job selection.
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