My Private Sector Pension

[ownyourfuture]

How Is Your Private Sector Pension Doing ?

Mine








& One Question.......


Ok, I was bored, so I made the GIF from a you-tube video
Obviously, I don't expect anyone from this forum to answer the question. It was tongue-in-cheek.

But..........I 'was' wondering if anyone else here has seen this trend with their 'private sector' pension ?

 

[RunningBum]

I see the same trend, though your numbers are about 5-6% better than mine. Mine were further off in 2016 but not as big of a drop in 2017. Supposed to be a very blue chip company too. Big blue chip. It's not a big part of my retirement plan though.

 

[MuirWannabe]

It’s certainly not safe. At least if that guy is your dentist.

 

[joylesshusband]

Total plan assets @SoY 2017 = $210,640,290

2017, with / without adjusted rates = 107.2% / 87.4%
2016 = 109.2% / 89.8%
2015 = 108.9% / 88.2%

Looks OK to me.

 

[foxfirev5]

They send me a check for a few hundred every month. It's not worth looking into the details.

 

[savory]

I looked at it yesterday buy already filed. I is consistent with OP. My concern is I retired from a company and then my division was sold. Then, the acquiring company sold 'my' division.

The acquiring company now manages my pension. It is a large public company (I retired from a large private company). The public company appears to be doing OK and they have employees on a defined benefit plan. My consternation is lessen a bit with PBIC but I would simply have felt better if my pension was managed by a company I know and could find my way around if I had questions or issues.

 

[CaptTom]

The numbers are very close to the one I received today from one company I worked for. I have no clue if it's good or bad, but I suppose if it stays near 100% that's OK.

 

[MichaelB]

The year to year change in pension funding should reflect two things. First, the increase in liability should be completely funded. Second, part of the prior unfunded liability should also be funded.

More data would be needed to see what is happening with the pension in the OP, but at first glance it looks like neither of these things are happening. The rapid increase in total funding shortfall is troubling.

 

[savory]

I looked at it yesterday buy already filed. I is consistent with OP. My concern is I retired from a company and then my division was sold. Then, the acquiring company sold 'my' division.

The acquiring company now manages my pension. It is a large public company (I retired from a large private company). The public company appears to be doing OK and they have employees on a defined benefit plan. My consternation is lessen a bit with PBIC but I would simply have felt better if my pension was managed by a company I know and could find my way around if I had questions or issues.

I decided to not be so lazy and get my stuff out of the file

2015 - 104/86
2016 - 95/80
2017 - 72/87 - funding shortfall is $8mm adjusted and $21mm not adjusted for interest rates. That 72% number is not comforting.

 

[rodi]

My pension(s) are in much worse shape than yours... But they are such a small amount and small amount of my retirement spending that I'm not too worried. My percentages were in the low 80's % for percent funded... and the trend is going to smaller/lower percentages YoY.

But my pensions only provide about 6% of my total spending needs.... so I should survive, even if the pensions don't.

And the pensions are from two different fortune 500 companies - one was acquired by the other and that pension froze. The 2nd was spun off and the pension frozen in the mid '00s .. The corporation that owns and manages both pensions is still around and doing ok.

 

[ownyourfuture]

OP Correction: The info I've included up to this point, is for a very small pension I won’t be eligible for until age 60.
This is the ‘big one’ that I’ve been collecting since July 2015.
I upgraded the background to apologize for the error

 

[FIREmenow]

Have a private company ($25B market cap) pension. Pension was frozen and not available for any new employees after 2004. Fund managed by high-end financial corp now.

2015 - Assets: 2.536B, Liabilities: 1.782B, "Funding Target Attainment Percentage": 139.48%
2016 - Assets: 2.367B, Liabilities: 1.826B, "Funding Target Attainment Percentage": 126.91%
2017 - Assets: 2.402B, Liabilities: 1.852B, "Funding Target Attainment Percentage": 126.84%

Will start taking early this year at age 58. Monthly payment (non-COLA) will be ~15% of monthly budget. Increase by waiting is less than 3%/yr, so taking early makes most sense.

 

[JoeWras]

I see the same trend, though your numbers are about 5-6% better than mine. Mine were further off in 2016 but not as big of a drop in 2017. Supposed to be a very blue chip company too. Big blue chip. It's not a big part of my retirement plan though.

A company of that stature wouldn't hose employees or retirees, right? I'm sure the executive suite would take a cut first and make sure the plan is funded.

</sarc>

* Full disclosure: I supposedly have "dinner for two per month" coming to me in about 10 years from same company. Dinner may consist of hamburger and fries.

 

[bada bing]

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

 

[ownyourfuture]

Have a private company ($25B market cap) pension. Pension was frozen and not available for any new employees after 2004. Fund managed by high-end financial corp now.

2015 - Assets: 2.536B, Liabilities: 1.782B, "Funding Target Attainment Percentage": 139.48%
2016 - Assets: 2.367B, Liabilities: 1.826B, "Funding Target Attainment Percentage": 126.91%
2017 - Assets: 2.402B, Liabilities: 1.852B, "Funding Target Attainment Percentage": 126.84%

Will start taking early this year at age 58. Monthly payment (non-COLA) will be ~15% of monthly budget. Increase by waiting is less than 3%/yr, so taking early makes most sense.

Looks like you're set!

 

[ownyourfuture]

A company of that stature wouldn't hose employees or retirees, right? I'm sure the executive suite would take a cut first and make sure the plan is funded.

Of course not. If they did that, they wouldn't be able to fund the outrageously lavish golden parachutes given to execs when they fail

 

[ownyourfuture]

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

Very interesting