Over heard it was discussed during the business planning process. No pension for new hires, will stop contributing current pension with option to let it sit or roll over to 401k
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As an experienced hire who doesn't have 15 years left before I hit 55 I would welcome a greater contribution to my 401k. The pension for me is a non issue. Give me the money now.
Pensions were an old-time coddling technique to soft-boil any thoughts of collective employee organization in worker's brain. Pensions from the knob-turner to the PhD.
Old-time like the 30s/50s. (20th century)
Medical coverage and vacation accrual - stuff like that.
It's been determined, by many studies, these impractical and expensive cushions can and should be removed from any profitable business.
According to one study:
"The workers will accept this removal as part of the troubles of this world they must slog through on the way to salvation."
It's true that EM is a late-comer to this realization.
@aszp+1nMLwkdP - Agreed, I’d calculate your pension wisely. I left the company after 5 years when they were doing pension payouts. The salary increase at my new job was more per year than my entire pension balance after 5 years lol…
A lot of people don't even know and never cared to look into how much the company actually contributes towards your pension. It is 10% annually. Is it a benefit? Yes. Is it the best benefit out there? No. When you compare the lackluster and uncompetitive salary package, outdated health and medical benefits, okay 401k, no bonus, and peanuts in RSUs to those chosen ones, 10% pension benefit doesn't make up for it, especially now that the job security is gone and gaslighting is openly played and is rampant. Id--t DW and his incompetence has ruined the company and it is def. going Enron way.
Well that one way to pay for the LCS, CCS, and denbury nonsense
Given the competitive assessment system and how you basically have to last your entire career without getting PIPd, would it be better have a higher 401k percentage that’s yours or a $2M pension you may never fully get?
Your annual benefits statement shows how much the company is contributing to the pension fund on your behalf. I'm retired now but the last few years when I was paying attention it was 10%.
There is so much more risk on personal investments, even indexed funds, than there is on a pension.
For a 401k match increase to be comparable to the current pension plan it could look something like you vest an additional 5% match to the 401k (bringing the match to 12%) and accrue an additional 5% (17% total) which vests the day you turn 59 1/2.
All this would need to grow at a rate of 7% annually to be equivalent to the current pension plan.
If the pension does stop and 401k goes up by several percent to compensate, do the math on how many percent it would have to go up to cover the lost $ mentioned in the pension calendar. It might not be as bad as you think.
I would think the affiliates plans freeze first then US last. Lots of history stopping affialites pension. US would hopefully be a soft freeze - no benefit for new hires and plans keeps going for those already vested. Days are numbered one way or another. But old US people are probably not going to feel a change.
How about a sick out to show we are aware and will not continue to be bent over so they can coddle Cheap low quality workers? Pick a date!! September?
I’d lI’m me to best immediately. K thx.
90 days notice in UK, 60 in US. They have to give notice, KM knows this. Wait and see…
Rumour is very strong that final salary pension in UK will be stopped YE23.
Also have a reliable source. This was brought up as an option in 2020. Source hadn’t heard further conversations about it.
The pension website states that everyone would vest immediately if plan was removed and not replaced.
When will this be announced?
Is this only the US?
Well if they cut pension that’s a quick way to offset the LCS bs and denbury purchase. Poor people sold to sla-ghter
How long before that chicken sh!t DW holds a town hall and someone asks this. He’s such a pu-s that he’ll prob have the new HR guy take the meeting.
If this is true, every single employee that has endured working at EM for the last decade plus, with the sh-t work environment and low moral is going to be looking for other jobs. They are going to loose A LOT of their senior guys and end up with a whole bunch of employees with little experience who will leave the second they get a better offer elsewhere. Upper management is blind and out of touch. We have stayed for the pension, not because we like working here. You pull that out from under us, f you! No newbies want to be here after they realize how much the environment su-ks, and all the guys with experience are gonna get screwed if they drop pensions, which is honestly the last straw. I swear their goal is to staff the whole company with cheap foreign labor.
Can we stage a walk out? Or maybe that’s what they want?
Yes it’s true, pension will be gone at the end of this year. Asked a manager about it and they admitted that a lot of people were concerned about it, but said, “I can comment on that”.
Maybe they will issue all the remaining pension in Kohls cash. Can you imagine the possibilities?
Value proposition? Ha that’s funny
Don’t roll over. Keep the pension benefit. Higher payout if you are of reasonable health. And you already have a 401k to compliment, so you don’t need more employee-risk assets.
Is this limited to the US, or any other dilutions in other parts of the world?
Heard from a reliable source that medical for retirees will be stripped as well. With the exponential rising costs of medical in the US, this may save more money than ki-ling the pension itself. If I were retirement eligible, I’d get out now to lock that benefit in … take the pain of the current interest rates, better than the alternative.
In that case, it could take several more years to happen, since interest rates might continue to rise for a while.
Likely been planned for a while, just waiting on peak interest rate so conversion is the lowest cost.
I’m wondering if they will change medical for retirees as well?
You are correct in your analysis. A 401(K) can be rolled over to your next company's 401(K) retirement plan.
Everything you read on the internet is true - Abraham Lincoln
How much of this rumor is actually just an echo chamber? For those saying the heard from a reliable source, what was that person’s source?
Effective 2024
If the pension is cut, itoccurs to me, there would be no reason to have Near Retirement Eligibility (NRE) protections for older employees. The C suite could argue that by giving a lump sump dispersment negates this protection.
Announcement on changes coming in 4Q
This is happening but not this year
Fed will raise rates again, pension buyout will be at historical lows. Brilliant strategy by board. Shareholder very happy. WAEM!!
Need to know about the medical. I’m ready to go. That simple.