Announcement on August 8th. that the pension will no longer be funded
44 replies (most recent on top)
I don’t know why the BOD continues to let BR continue his path of financial destruction. He’s like a wastrel child who came into a huge inheritance. The pension is not his to do away with! He sells off everything and then finds new ways to waste the money so he can look like a benevolent big shot.
@5uar+1ty2gqNh, wow you sound like so many senior leaders here, you hear what you want to hear so you can sound important. Of course if you take the cash payout there are ways to reduce your tax burden my apologies for not writing a white paper for every potential way to do so.
I’m not vested until December, does that mean I’m SOL?
@3guz+1ty2gqNh You are 100% wrong. You can roll it into an IRA if you chose the lump sum. Take the money in your checking account THEN it counts as a distribution. If you don’t know how to fill out the paperwork, get financial advice. Make a wrong decision and it could be disastrous.
3guz+1ty2gqNh - Thank you for the reply. I'm sure that ki-ling the pension is high in their agenda and I appreciate the insight of someone who has, unfortunately, been through the process.
@2tvd+1ty2gqNh, you are correct. If you take the cash it is considered income and will be taxed as such. If you roll to an IRA you shouldn't have to pay taxes on it but individual circumstances could impact that. Also I don't know what options for rolling to an IRA will be given, for instance if you already have an IRA could it just be deposited there? Not sure on the tax law changes since I went through it as it's been over a decade.
@2xwu+1ty2gqNh - Thanks for sharing that insight. Presumably either option comes with major tax consequence?
Please note that as an employee that has been through the dissolving of pension at another Financial institution, they don't just keep it in uts current form. Typically you will be offered a choice of a cash payout or an annuity based on the current vested value. In my case the annuity did not make sense as the cash value properly invested overtime far outweighed the annuity.
Assuming that OP is correct in this post and the pension will not be funded moving forward I expect Truist to take a similar approach.
I am curious as to how the EL will spins this change into a how Truist Cares message especially after announcing the drop in 401k match but with the Pension we are still competitive no way that statement still applies.
As a manager I have to wonder if they are actively trying to drive away employees. With the 4 days a week RTO and the other reductions in benefits, we can no longer say we are competitive. I am losing my best talent and trying to find adequate replacements is extremely difficult.
7/19/24 has anyone tried to go to the Pension Website today? Page can’t be reached thru the link in Fidelity or from the benefits page. Even with the wide spread Micro soft issues, I can reach anything else just not this? Coincidence?
Hysteria. Sure thing chief. I was reading the Con Law textbook that had to be supplemented mid year because of how much precedent this court was overturning though.
But yeah. I don’t understand Chevron. Hope you enjoyed your Hulk Hogan and Kid Rock appearances last night.
Is America great again now we don’t have to worry about pesky bureaucrats?
Thank you. It's like shouting into the abyss. The opinions expressed in some of the comments were formed by people who haven't read the first word of the Loper Bright opinion and are being told what they should think. I tried to explain the decision, it's impact and the fact that it does not portend the end of the free (or regulatory) world. I've been doing this for many decades now and like to think I have more than a passing knowledge of the law.
Those who have made their decision based on the hysteria they've heard on the news...never having read the first word of the opinion...are certain that they are right. Their opinion can't be changed apparently. I've read every word of the opinion...the majority opinion, the concurrence, and the dissent. I guess that I am just stunned that some folks want to walk into a courtroom, knowing that the federal government has the case in the bag. That is the essence of Chevron and, if I may change contexts, is essentially a "presumed guilty until proven innocent" standard for the challenging party.
The Chevron opinion did not exist until 1984. The regulatory world existed long before that and will continue to exist, sometimes for better and sometimes for worse, long after the Loper Bright decision.
Thank you again. I have given up on my attempt to alter the opinions that are being formed by the unwarranted hysteria.
Thank goodness there are now two of us that actually understand Chevron. It's lonely.
Shutting down the pension must be part of Bill’s “intensity, discipline and reorienting ourselves” mantra he has told the analysts SunTruist is going through. His passion and purpose of sc--wing all the “Teammates” will continue with “Care and Compassion”! F**k you Bill🤡
"Put the freeze date as your retirement date to calculate what it would pay."
Thank you for this. Makes perfect sense.
It's a regulatory body. Without exact legislation, due to the Chevron ruling, a single ruling will invalidate EIRSA's power without exact legislation directly creating laws that govern pensions. Otherwise, it's "ambiguous."
Yeah, that's why I corrected myself with the DoL.
"The pension fund will continue to pay out... Until it's depleted."
That's not true. Pensions are, with some exceptions, guaranteed by the Pension Benefit Guaranty Corporation, an agency of the federal government established under ERISA. Here is the website:
https://www.pbgc.gov
Truist's Summary Plan Description reveals that Truist's plan is covered by PBGC. You can find the Summary Plan Description on the pension website under documents. There are dollar limits to the PBGC guaranty, but they're fairly high.
And the SEC doesn't regulate private pensions.
You are just spewing absolute bulls--t. There are a ton of reasons for people to be concerned about this place without you trying to make a bad situation worse.
“Once you are in that website, you can run different scenarios to see how much the pension would pay you per month. The website isn't set up to account for freezing the pension, of course. But I think you could mess around with it and get it sp-t out an approximation of what it would pay in a "freeze" scenario.”
Put the freeze date as your retirement date to calculate what it would pay.
If this post is accurate, in all likelihood new hires would not be part of the pension system at all. The pension for current employees would be frozen as of a certain date. So it will not continue to grow beyond that date. I'm sure many (most) know this, but you can go to the truist benefits website, under 'retirement" and select pension. It will take you to a external website maintained by Aon. Log in to that website - create a login if necessary. Once you are in that website, you can run different scenarios to see how much the pension would pay you per month. The website isn't set up to account for freezing the pension, of course. But I think you could mess around with it and get it sp-t out an approximation of what it would pay in a "freeze" scenario.
Do you mean for new hires or for everyone?
“What are the founding fathers thinking”
Congrats. You are a finalist for clown post of the year
Overturning longstanding law is nothing to do with the founding fathers, its social justice judges. Political hacks. Unserious people. If you think we are better off with people like MTG coming up with regulations you are also un serious.
Yes, it's awful that the legislature has to, well... actually legislate. What were the founding fathers thinking?!?!
"The pension fund will continue to pay out... Until it's depleted."
That's not true. Pensions are, with some exceptions, guaranteed by the Pension Benefit Guaranty Corporation, an agency of the federal government established under ERISA. Here is the website:
https://www.pbgc.gov
Truist's Summary Plan Description reveals that Truist's plan is covered by PBGC. You can find the Summary Plan Description on the pension website under documents. There are dollar limits to the PBGC guaranty, but they're fairly high.
And the SEC doesn't regulate private pensions.
You are just spewing absolute bulls--t. There are a ton of reasons for people to be concerned about this place without you trying to make a bad situation worse.
If they stop funding it then I assume it stops growing and you would get what it’s worth today regardless how many additional years you work.
“ For the sake of information, using round numbers, if I’m locked in at 2000 per month now and age 65 that will be 6000. If pension is frozen am I locked in at the 2000, or does it continue to escalate based on my age and when I start drawing? A lot of people probably want to know this!”
That is a good question. If the pension is no longer funded then the “freezing” refers to the benefits. So in your example you would get $2,000 at age 65 no matter how many more years you work for the bank.
Yeah, the regulatory bodies don't have the power to draft the specific regulations they were tasked to create. That's what I said. It now must be done by legislation otherwise it's "ambiguous."
I'm sure you're smarter than the thousands of legal experts, lawyers, and law professors who have said as much, though.
Despite the teeth gnashing of certain talking heads, that is not at all what the Loper Bright and Relentless cases said. Not at all. Chevron stated that the federal courts should give deference to the reasonable interpretation of regulatory agencies in administering ambiguous federal laws. Thus allowing regulatory agencies to "interpret" laws to create more and more regulations under an alleged "ambiguity," whether an ambiguity actually existed or not. In reality it turned into carte blanche for regulatory agencies to do whatever they wished, all due to the deference mandated by Chevron.
Consequently, we had unelected bureaucrats passing onerous regulations largely unchecked by the courts...due to Chevron. None of those bureaucrats ever had to face the voters to account for those regulations. Just nameless, faceless bureaucrats passing significant regulations that impact everyone's life.
Chevron was a bad decision when it was rendered and thank God it is gone. Loper Bright and Relentless put a much needed end to the unchecked bureaucratic state and puts the burden on Congress to pass clear and unambiguous laws, and to face the consequences at election time of having done so. Agencies are a creation of Congress, not the Constitution, and have only that authority granted by Congress.
The Loper Bright and Relentless decisions, that finally put Chevron down for the count, most certainly not stand for the proposition that "regulations cannot be enforced, only a law can directly enforce something..."
The Chevron decision was rendered in 1984 - do you believe that regulations didn't exist until 1984?
For the sake of information, using round numbers, if I’m locked in at 2000 per month now and age 65 that will be 6000. If pension is frozen am I locked in at the 2000, or does it continue to escalate based on my age and when I start drawing? A lot of people probably want to know this!
Excuse me, the DoL, not the SEC.
The pension fund will continue to pay out... Until it's depleted.
Thanks to the supreme court's Chevron ruling, regulations cannot be enforced, only a law can directly enforce something, so all it's going to take to remove SEC oversight of pension funds is one lawsuit and we all know how "business" friendly the supreme court is.
Good luck.
You seem like a very unhappy person if you discriminate against people because of their age and want to get rid of the best benefit Truist has. As someone with "Boomer" parents (who are also very financially responsible) with pensions, you have no idea the financial security and freedom pensions can offer in retirement. They are not the only vehicle for financial freedom and security in retirement; however, they make life a he-l of a lot easier.
That will just mean more internal jobs will open up when the mass exodus begins in Sept. Assuming this is true of course.
Just to be clear, if the pension is no longer funded that means it is frozen. Your pension benefit will stay at the level it is on that date no matter how many more years you work.
Won’t it be ironic if they tell us the good news is they will increase the employer contribution portion to our 401k from four percent to six percent to make up for freezing the pension.
Love it! Glad Truist is slashing the pension. Maybe some of the annoying boomers will GTFO. Don’t let the door hit you on your way out. #HappyTrailsBoomers
"U know there’s an a in liar right?"
Yes, I was referring to am ambush
U know there’s an a in liar right?
Lier Lier Pants on Fire!!
In addition to what @wsk+1ty2gqNh said, troll or not, for those who don’t know, everything that you’re seeing done now (if a bbt person) happened when Bill ran suntrust. So for some of us, it’s not a surprise the cycle is repeating on a grander scale unfortunately. We were actually glad for merger thinking some things would change, then reality hit.
Another step closer to a merger or sale?
If you think Bill plans to keep the pension then you’re high as a kite! Remaining on that sinking ship, just for a pension, is merely an excuse for your own complacency. Unless you’re approaching retirement, you don’t need that sleepy pension. Go find a better path…your mental health will appreciate it!
Troll or not, it was done away with at Suntrust by Bill, brought back at merger of equals only because it existed at BBT. I would be shocked if it is not announced in 3rd or 4th quarter that they are doing away with it.