Megacorps that offer pension?
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njhowie
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What is his/her background? Software?
I don't know about today, but all of the defense contractors had very good pension plans. I'm currently receiving pension benefits from one of them. The past 20 or so years has been very good for the defense sector and considering the state of world affairs today, the future also appears to be very bright. Pay will not compare with FAANG, but you also won't get worked to death. Overall the benefits [-]are[/-] were very good at all the defense contractors.
I don't know about today, but all of the defense contractors had very good pension plans. I'm currently receiving pension benefits from one of them. The past 20 or so years has been very good for the defense sector and considering the state of world affairs today, the future also appears to be very bright. Pay will not compare with FAANG, but you also won't get worked to death. Overall the benefits [-]are[/-] were very good at all the defense contractors.
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GalaxyBoy
Thinks s/he gets paid by the post
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!
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!
LarryMelman
Recycles dryer sheets
I do know about today so let me offer my opinions.
1. Corporate pension plans are all but gone nowadays. My first employer out of school had one back in the mid 80's but it was frozen in the early 2000's when the company was imploding. I took a buyout from that pension a few years ago.
2. w.r.t. defense companies: In 2007 I joined a defense contractor that still offered a traditional pension in addition to a portable pension option. Shortly afterward, the parent corporation spun off the defense division, at which time the pension plans were frozen for current employees and unavailable to new hires. I took the portable pension with me when I left (like rolling over a 401k). No employer since then has offered one, including my current defense contractor employer. I've never heard mention of a pension plan among my co-workers so I suspect this company hasn't had one for a long time.
3. w.r.t benefits at defense contractors: Neither of mine give any equity compensation or bonus plans which are otherwise quite common and expected in the "commercial" world. I would describe the benefits offered by my current employer as average at best. (e.g. The medical plans are all High-deductible.)
1. Corporate pension plans are all but gone nowadays. My first employer out of school had one back in the mid 80's but it was frozen in the early 2000's when the company was imploding. I took a buyout from that pension a few years ago.
2. w.r.t. defense companies: In 2007 I joined a defense contractor that still offered a traditional pension in addition to a portable pension option. Shortly afterward, the parent corporation spun off the defense division, at which time the pension plans were frozen for current employees and unavailable to new hires. I took the portable pension with me when I left (like rolling over a 401k). No employer since then has offered one, including my current defense contractor employer. I've never heard mention of a pension plan among my co-workers so I suspect this company hasn't had one for a long time.
3. w.r.t benefits at defense contractors: Neither of mine give any equity compensation or bonus plans which are otherwise quite common and expected in the "commercial" world. I would describe the benefits offered by my current employer as average at best. (e.g. The medical plans are all High-deductible.)
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JackJester
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Even the defense industries are eliminating the Pension. The Boeing Company basically eliminated their pension to engineers (which includes SW developers) in 2018, and added a few years of increased contributions to the 401K as a temporary offset. But, essentially, the traditional pension as we know it is dead from here on out at BA. https://www.businessinsurance.com/a...al-union-freezes-pension-fund-at-end-of-2018-
Sniggle
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The insurance industry no longer has pensions. My mega insurance company stopped accepting new folks to the pension in 2001 and finally closed it at the end of 2019.
For a pension you need to work for the government.
For a pension you need to work for the government.
https://finance.yahoo.com/news/14-companies-still-offer-pensions-100000381.html
It’s a little old, from 2019, but probably still reasonably accurate.
It’s a little old, from 2019, but probably still reasonably accurate.
Freedom56
Thinks s/he gets paid by the post
I am receiving a pension from my former employer but it stopped the benefit for new employees starting in 2006. In 2016 it terminated pension benefit point accruals so retiring in 2015 was a good move. Federal, state, and local governments are the only ones still offering pensions. But the salary sucks and they don't attract the highest caliber talent.
ocean view
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OP - advise your young friend to treat their equity compensation as compensation in lieu of a pension and save as much of it as possible for retirement. Live off only their base salary and bonuses. It okay to use some for big life events (wedding, down payment, an occasional big vacation), but otherwise save it.
Starting at age 35, I started selling my shares, a tranche every quarter, alternating between NQs and ESPP. I didn’t want all of my eggs in one basket. All of that $ went into a taxable investment account. I retired at 50 in a single income household in Silicon Valley. All of my friends and co-workers were shocked. We all made the same salary and had similar equity, so why couldn’t they retire? They took big vacations every year and bought expensive cars with their $. I had an early retirement goal and they didn’t, so perspective is important too.
Don’t worry too much about not having a pension if there is equity comp.
Starting at age 35, I started selling my shares, a tranche every quarter, alternating between NQs and ESPP. I didn’t want all of my eggs in one basket. All of that $ went into a taxable investment account. I retired at 50 in a single income household in Silicon Valley. All of my friends and co-workers were shocked. We all made the same salary and had similar equity, so why couldn’t they retire? They took big vacations every year and bought expensive cars with their $. I had an early retirement goal and they didn’t, so perspective is important too.
Don’t worry too much about not having a pension if there is equity comp.
bada bing
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10 years ago, I would have said the oil majors all do. That has changed though as companies freeze them and/or phase them out. I worked a career for 4 different oil majors, being traded with asset sales. My entire career was covered by pension, but I actually got traded out 3 times, going to companies retaining their pensions within a year of the former employer pension plans being frozen. Lucky, lucky 
My final employer still offers a good pension plan to active employees, but I wouldn't count on it lasting even another 3 years required for a new hire to vest.
Non-union private sector pension plans never were as sweet as government pensions. Mostly because of the (lack of) COLA, but the crediting was also lower. My final pension will replace 15% of gross wages for 14 years of service, with no COLA. An upside to private pensions is that most have(had) a lump sum cash out option. I can cash out my final pension anytime until I start it or I turn 71. Another upside to private pensions is that they are always in addition to Social security, rather than in-lieu of it, like some government pensions.
Oil majors still offer good 401K matching. I appreciated having both matching and pension, but in reality a good (7%-11%) 401K match was worth a bit more than the pension credits.
My final employer still offers a good pension plan to active employees, but I wouldn't count on it lasting even another 3 years required for a new hire to vest.Non-union private sector pension plans never were as sweet as government pensions. Mostly because of the (lack of) COLA, but the crediting was also lower. My final pension will replace 15% of gross wages for 14 years of service, with no COLA. An upside to private pensions is that most have(had) a lump sum cash out option. I can cash out my final pension anytime until I start it or I turn 71. Another upside to private pensions is that they are always in addition to Social security, rather than in-lieu of it, like some government pensions.
Oil majors still offer good 401K matching. I appreciated having both matching and pension, but in reality a good (7%-11%) 401K match was worth a bit more than the pension credits.
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Jeffman52
Recycles dryer sheets
The company I w**k for had a pension but it was ended in 2010 and they instead increased the match of the 401K plans. Anyone in that pension was "grandfathered" in and their pensions continue, but anyone hired after 2010 do not have pensions.
RunningBum
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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.
Love This Community
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Here’s my experience:
Megacorp # 1: I joined straight out of college. Salary offered was low compared to other MC’s but very reputable and sought after company. I stayed for 10 years and my pension at full retirement age (FRA) is less than $1000 (including voluntary pension contributions that I made). Megacorp stopped pensions around 2010 and switched to additional 401K match. I was grandfathered into the old plan. Left MC 1 in 2014.
I accepted the job offer because I wanted to be part of the company and liked the job ( pension was not a deciding factor)
Megacorp # 2: Totally different industry than MC # 1. I was eligible for pension. Stayed at MC # 2 for three and half years. Projected Pension at FRA is $300
I joined this industry to expand my skill set and better pay. Again, pension was not a deciding factor.
Megacorp # 3: Different industry than MC # 1 and MC # 2. Offers pension and I am not yet vested. Pension was a very minor part while deciding to accept the offer.
There are fewer and fewer companies that are offering pensions and the ones that are offering are switching to 401K match model. I got very lucky with pensions but am very skeptical about counting on it in the long run ( though there is security offered by PBGC. MC#1 is an example of company that was on DJI for decades before getting booted out and it’s stock going down the drain).
If I change jobs again, I will place an even smaller weight on pension.
My advice would be to find a job that one likes, grow ones skill sets and grab opportunities that come along the way. Like other posters mentioned, there are many ways to look at the total compensation. Depending on the industry (IT) ESPP, RSU’s being a good chunk of total compensation. 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.
Megacorp # 1: I joined straight out of college. Salary offered was low compared to other MC’s but very reputable and sought after company. I stayed for 10 years and my pension at full retirement age (FRA) is less than $1000 (including voluntary pension contributions that I made). Megacorp stopped pensions around 2010 and switched to additional 401K match. I was grandfathered into the old plan. Left MC 1 in 2014.
I accepted the job offer because I wanted to be part of the company and liked the job ( pension was not a deciding factor)
Megacorp # 2: Totally different industry than MC # 1. I was eligible for pension. Stayed at MC # 2 for three and half years. Projected Pension at FRA is $300
I joined this industry to expand my skill set and better pay. Again, pension was not a deciding factor.
Megacorp # 3: Different industry than MC # 1 and MC # 2. Offers pension and I am not yet vested. Pension was a very minor part while deciding to accept the offer.
There are fewer and fewer companies that are offering pensions and the ones that are offering are switching to 401K match model. I got very lucky with pensions but am very skeptical about counting on it in the long run ( though there is security offered by PBGC. MC#1 is an example of company that was on DJI for decades before getting booted out and it’s stock going down the drain).
If I change jobs again, I will place an even smaller weight on pension.
My advice would be to find a job that one likes, grow ones skill sets and grab opportunities that come along the way. Like other posters mentioned, there are many ways to look at the total compensation. Depending on the industry (IT) ESPP, RSU’s being a good chunk of total compensation. 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.
WestUniversity
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My Megacorp closed its pension plan to new employees many years ago. Those that were in the plan were grandfathered while new employees received a larger contribution to their 401k to make up for the lack of a pension contribution...
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Private sector pensions are not really a thing anymore - certainly not for new staff, non-union places. They started to convert in the 80's/90's to 401ks. I was 10 years at my Mega at the time, and that translated to $40k being added to my retirement account when they shut down the pension plan.
Public sector - gov't/military, etc., is the only real place to find them, but the chances of a salary matching a non-pension-private job are not as good.
Public sector - gov't/military, etc., is the only real place to find them, but the chances of a salary matching a non-pension-private job are not as good.
Surewhitey
Thinks s/he gets paid by the post
DW's mega-insurance (Zurich) dropped it in 2009-ish and did the same for the 401ks. She left in 2011 (after 11 years) & it's still growing at $4k annually. Expecting a modest monthly one day or about $150-170k lump...
Her current employer is doing a 9% contribution (profit sharing) to the 401k. No match though.
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latexman
Thinks s/he gets paid by the post
I hired on with MC #1 in 1979. MC #1 had a pension. In the early 1980's MC #1 added a 401k; the pension was unchanged and remained active.
MC #2 bought MC #1 in 2001. MC #2 had a pension and it was deemed that retirees would receive the largest pension of MC #1 and MC #2 formulas.
MC #3 bought the business unit I was in from MC #2 in 2010. MC #3 had already froze their pension. MC #3 had a 401k. I was eligible for a full pension and retiree medical from MC #2. I continue to defer my pension and retiree medical. Shortly after selling our business unit, MC #2 froze their pension. This does not affect my pension.
Now, MC #3, MC #2, and MC #1 (a subsidiary of MC #2) have no pension.
MC #2 bought MC #1 in 2001. MC #2 had a pension and it was deemed that retirees would receive the largest pension of MC #1 and MC #2 formulas.
MC #3 bought the business unit I was in from MC #2 in 2010. MC #3 had already froze their pension. MC #3 had a 401k. I was eligible for a full pension and retiree medical from MC #2. I continue to defer my pension and retiree medical. Shortly after selling our business unit, MC #2 froze their pension. This does not affect my pension.
Now, MC #3, MC #2, and MC #1 (a subsidiary of MC #2) have no pension.
Bamaman
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
The basics are that there are few industries/companies that are profitable enough to swamp their balance sheet with decades of liabilities that defined pensions require. There's just not enough money to fund defined pensions and retiree benefits.
My father worked with a gov't owned power company. At the time, they did their own construction and maintenance of power plants with 33,000 employees. And they realized that their pension and healthcare liabilities were unsustainable. About 20,000 employees were laid off. It's been 25+ years, and they still have $ billions in future payouts, as they still don't have the $ to pay.
The only way to budget in pensions is to pay as you go, and that's what 401K's do. Also the employee is paying his fair share that way. The only one you can count on for the future is you.
My father worked with a gov't owned power company. At the time, they did their own construction and maintenance of power plants with 33,000 employees. And they realized that their pension and healthcare liabilities were unsustainable. About 20,000 employees were laid off. It's been 25+ years, and they still have $ billions in future payouts, as they still don't have the $ to pay.
The only way to budget in pensions is to pay as you go, and that's what 401K's do. Also the employee is paying his fair share that way. The only one you can count on for the future is you.
My company's cash balance pension plan was frozen about 20 years ago, replaced by an increased 401k match. There's about $65k sitting in the pension getting a tiny rate of return, but I can't touch it or roll it over until I leave the company.
TheWizard
Thinks s/he gets paid by the post
My former long-term employer never had a pension plan.
But they did have an exceptional "match" to our mandatory 403(b) contribution, the "match" being double the amount taken from my paycheck.
So I think younger folks will be wise to assess the company's "retirement plan" contributions as part of total compensation.
Additionally, low-cost lifetime annuities from places like TIAA make it possible for retirees in good health to "pensionize" a portion of their tax-deferred accumulation for lifetime income...
But they did have an exceptional "match" to our mandatory 403(b) contribution, the "match" being double the amount taken from my paycheck.
So I think younger folks will be wise to assess the company's "retirement plan" contributions as part of total compensation.
Additionally, low-cost lifetime annuities from places like TIAA make it possible for retirees in good health to "pensionize" a portion of their tax-deferred accumulation for lifetime income...
Tiger8693
Full time employment: Posting here.
A former employer (that I left in 2000) had a defined contribution pension plan that as I understand it ceased to be continued shortly after I had left. I don't have access to these funds (currently ~$85k until I turn 65). Each year I get a statement, and it states the coming years interest rate on the balance which has never been below 4%, usually 4.2+/-
I used to think it was terrible, now I wish I knew what they had the funds in to get that return!
As others have said, everything since then is 401k related retirement
I used to think it was terrible, now I wish I knew what they had the funds in to get that return!
As others have said, everything since then is 401k related retirement
jazz4cash
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Who is eligible for an annuity from TIAA? Is it restricted to teaching professionals? We need to convince people without pensions or 401k’s to save 10-15 % anyway. IRA limits are ridiculously low but saving in an after tax account is fine.
brett
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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.
Besides, most people starting work today will have 5-7 employers over the course of their working life.
Besides, most people starting work today will have 5-7 employers over the course of their working life.
