How to find out my company's pension funding?

[bclover]

I apologize if this is an easy question that I'm missing the answer to but is there a way to find out if my company's pension is funded?

Background. I'm 56 and retired from Dupont chemicals this year. the company froze pensions back in 2010 when they ceased offering them to new employees.
Company merged with another mega corp and that goes through end of this year.

Company had not made pensions payments in 2012 and 2013 and at that time they were about 67% funded but back in Feb they did make a huge payment that I believe was part of the merger.

http://www.pionline.com/article/201...-to-contribute-230-million-to-us-pension-plan

Now of course rumors going round that they are offering a buyout on pensions.
DuPont pension choice: 'The company has scared everybody' (Updates)


I wasn't going to turn on that particular faucet for another 5-8 years but what happens if they decide not to fund the pension anymore? Is that a possibility? what other issues should I be considering?



Again apologies, I did search through the site and look at other threads as I know this topic comes up a bit.

 

[Big_Hitter]

If you are already receiving a pension I don't think they can offer you a lump sum at this point unless they terminate the plan. If you want to look at the tax filing for the plan google "EFAST lookup" then fill in the data to find your plan's 5500. You should have also received an annual funding notice a few months ago.

 

[2017ish]

knotty problem.

You are vested, so ERISA prevents termination of your benefits. DuPont and Dow are both pretty sturdy companies, and I suspect that even if one of the three surviving entities fails, the Feds will have required all three to backstop the pension obligations. So PBGC is not likely--which even then would be a backstop.

Have you been offered the lumpsum or early payout yet? My gut would tell me not to grab either offer--unless the numbers are actuarially slanted in your favor, which is unlikely. Looks mainly like a balance sheet cleanup effort.

E.T.A.: The company's FAQ for retirees looks helpful: http://www.retiree.dupont.com/our-company/retirees/faqs.html

 

[bclover]

Supossedly we should get an offer within next two weeks.
My thought was to skip also. Interesting comments in tge article though

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[user5027]

There is an article about the Dupont pension in the Philadelphia Inquirer...
DuPont pension choice: 'The company has scared everybody' (Updates)

 

[bclover]

If you are already receiving a pension I don't think they can offer you a lump sum at this point unless they terminate the plan. If you want to look at the tax filing for the plan google "EFAST lookup" then fill in the data to find your plan's 5500. You should have also received an annual funding notice a few months ago.

Not receiving a pension yet. wasn't going to start it until 62

 

[travelover]

If you are already receiving a pension I don't think they can offer you a lump sum at this point unless they terminate the plan. ........

I had already started my MegaMotors pension when I was offered a lump sum. I did not take it and the pension plan continues. GM rolled all their pensioners that refused the lump sum into annuities administered by the issuing insurance companies.


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[Dan32]

I would check those numbers from the article. They don't seem right from what I recall. I recently saw the Dupont funding status and believe there were 2 funding percentages. They were ~~77% and ~91%. the lower number uses only recent returns and is based on the old actuarial standard. The higher number is based on returns over a longer time period. Although not as conservative it is the current standard. If you do a search for Dupont on this board there are other discussions on this topic. I believe these pensions are save, although Dupont may adjust retiree health care to keep them safe. But I would certainly evaluate any lump sum offer that was made.


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[marinauser]

One question is whether there is any reason to put off taking the pension. If the plan was frozen several years back, will you get any additional moneys by waiting? This may depend on how long you worked for DuPont.

 

[Big_Hitter]

I had already started my MegaMotors pension when I was offered a lump sum. I did not take it and the pension plan continues. GM rolled all their pensioners that refused the lump sum into annuities administered by the issuing insurance companies.


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they just changed that rule last year - notice how DuPont is only offering the lump sum to deferred vesteds

 

[Sunset]

One question is whether there is any reason to put off taking the pension. If the plan was frozen several years back, will you get any additional moneys by waiting? This may depend on how long you worked for DuPont.

Good point.

OP - Be watchful about delaying pension as some frozen pensions do not pay anymore than X amount, regardless of further delay, and they don't pay for missed months if you start it late.