Just wondering if pension is protected against all odds?
10 replies (most recent on top)
Many of you young folks hired into KLTC are very smart. OK...they may be inexperienced, but are just as smart (some actually smarter) than US based graduates. Plus, they don't have the entitled mindset that you see at the Campus. They also generally work harder and get paid about a 1/5th what a US graduate gets. Not too difficult to understand why the company is moving jobs to KLTC. Just saying!
The EM U.S. pension fund is not insured by an investment or insurance company. The only "insurance" is that if the company goes bankrupt, then a federal agency (Pension Benefit Guarantee Corporation) takes over pension payments. BUT the PBGC does not pay 100%. There are federal limits on what the PBGC can pay (depends on circumstances of plan and age of pensioner). For many EM employees, they could expect to receive only about 50 to 60% of the monthly XOM annuity.
Pensions are governed by federal law, and there are legal safeguards for plans like ours to prevent the company from cheating on their obligations. The company would have to stop paying dividends and file for bankruptcy before they could wiggle out of pension obligations. So not something we need to worry about for the near future. But over the long term, my worry would definitely increase
Pensions are protected. For decades, corporation have been required by the federal government to pay
insurance on it. Your pension will most likely be managed by an investment or insurance company.
It could also be managed by a federal organization that's funded by the insurance from all US corporations.
1prr+17Mm6Qt
Rest assured, many jobs are going to KL! At least the quality there is much better than india..
You can thank (?) Enron. No disrespect to anyone who was tremendously affected by the mismanagement of that Company but, because of the downfall, ExxonMobil employees can breathe a sigh of relief knowing that their pension is protected.
As far as sending jobs to India, what a waste! We are America strong! Keep our jobs in the U.S. Americans work hard to put food on the table. We are not accustomed to standing in line for food....unless it’s take out! Take care of our people FIRST!!
Very few large caps (are we still in that group?) offer any pension of the old style.
It will be eliminated in EM in the future, but 'guaranteed' for those vested now.
As far as this being insured - yes, I think AIG has reinsured us.
Doh.
Time to eliminate the pension, cut average salaries 20% , fire 20%, zero out management EBU and RSU, cut executive ranks by 30%, cut senior professional (CL 28-29) counts by 30%. If you can work from home then we can WORK FROM INDIA... Transfer 10000 jobs to INDIA and fire overpaid Americans and Europeans. XOM refining and production is mostly Foreign..Our workforce needs to match that
Pension is insured. If Exxon goes bankrupt which they won't still no problem. All retirees will get guaranteed pension as this comes from a different source.
Go talk to someone from Enron about that?
No, they may freeze that going forward too. Folks with lots of years will get what is guaranteed, minus frozen years. Newer folks will know that there used to be a pension that they never will get.