Will the recent news about this company splitting up, affect the pension in any way?
9 replies (most recent on top)
The question is what about the unfunded portion of the pension? I expect each company will have to contribute to the Pension Fund based on some formula based on number of employees in the new companies who have a pension AND the pension liability of those folks. the question is what about the folks already retired and don't have a business association??
It'll have an impact for those who aren't collecting yet and won't for years to come. They won't know what the impact will be because most don't currently know what their pension should be. Basically, they won't miss what they never had. Yes you will still get "a" pension. You won't file for retirement and be told "Sorry but there's nothing". Your pension just won't go as far as it's been going for those who are retiring now and it especially won't go as far as it was going for those over the past few decades. The healthcare coverage that was part of retiring from GE, is no more. GE passed the responsibility of that off and guess who has to dip into their pocket now to help pay for it? They will come up with ways to secure your pension, but the dollars that you receive will not be for you to spend as you please. You will have to spend it on things you thought GE was also going to take care of for you.
Just offer us a pension buyout option so we can finally sever ties. Especially for those with a partial pension. A partial pension with no COL increases is garbage.
And some more info, for the fun of it, plus it's worth the time to be in the know, at least as much as possible.
Oct 21, 2019,
"Some 20,000 current employees who still have a legacy-defined benefit plan will see their benefits frozen as of January 2021. After then, they will accrue no further benefits and make no more contributions. The company will instead offer them matching payments in its 401(k) plan."
"About 100,000 former GE employees who earned benefits but haven’t yet started receiving them will be offered a one-time, lump sum payment instead. This presents employees with a very interesting proposition. Almost exactly like a Nash equilibrium."
Continue with reading this article.
https://www.forbes.com/sites/johnmauldin/2019/10/21/how-ge-screwed-over-its-retirees/?sh=34eb24772b7e
Here's some 2cents worth of wisdom, it's easy to find on the interwebz,,,
"Panicked about your GE pension? You may be better off than you think
As GE’s future seems increasingly unclear, here’s what the company’s pension holders can do.
Myth #1: My pension will not be there when I retire.
Will your pension look like you thought it would? That’s unclear now, but no matter what happens, it’s unlikely that pension holders would be left with nothing come retirement.
Pensions are insured by the *Pension Benefit Guaranty Corporation (PBGC), which guarantees pensions up to a certain amount.
Amounts listed are as of 2018, and approximate."
Source; https://www.cincinnati.com/story/sponsor-story/wealthquest/2019/01/07/panicked-your-ge-pension-you-may-better-off-than-you-think/2451022002/
GE will Gobble it up and you will get nothing to retire on. The fat cats the 1%er’s will coninue to gobble up the poor and middle class while their waist lines get bigger. Gobble gobble
You will loose it. GE will sc--w you out of it
Zero affect
I don't think it will any affect on pensions that have been earned.