Do you honestly think SF will buy out the pension at some point? Or they will just buy out those with less than certain $ a month? I guess for many people the only reason to stay is the pension.
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And unlike the erroneous earlier post “fully funded” means current obligations PLUS future obligations of those not drawing a pension yet.
The pension plan is fully funded. There will be no buyout.
@ var-BS on steroids.
@var…for all your bravado, you fundamentally do not understand how pension plans work.
Ok as soon as the prior post indicated “ it is over funded because the bulk of the employees have not started receiving benefits “ you can stop reading. Because the person making the post has NO understanding of pension funding. LOL. This is what happens when a CS pretends to understand the pension. 😂🤣😂🤣
You can expect the pension to be bought out/frozen sometime next year or they might delay another year until 2023. I have seen several people on here talk about it being overfunded and not a liability but they obviously do not exam the yearly plan disclosures. There are roughly 20K receiving benefits and another roughly 100K eligible. It is overfunded because the bulk of employees have not started receiving their benefits. It does cost money as we pay someone to manage the investments in the pension fund and we also pay someone to manage our employee 401K. State does have to fund it! I won't bore you with a long explanation but pensions are based on investment returns and most funds are in highly rated bonds. Pensions are limited/regulated in the bonds/equities they can invest in. Bonds basically return nothing these days and it is a long term exposure/expense regardless of what the uninformed on here try to ignore/placate. If pensions were not a burden/expense then SF would not have stopped for new hires and basically any other company that had pensions have bought them out or frozen their plans. Inflation increases the pension liability as wages go up and so does the portion that SF is responsible to set aside for the pension fund as the formula is based on the 5 highest years of earrings. Pensions are expensive and a liability, plain and simple, and why virtually no one has them these days! Enjoy it if you can but better be prepared to live without in you have more than a few years to go before you retire. It is the only reason anyone with tenure stays so that will be the next tool they use to make the remaining boomers retire.
They already have stopped no new entrants. I am always amazed that when uninformed people make this comment they totally disregard that the very people that would make that decision would have the most to lose. It would be totally against their self interest to freeze the pension. If you believe that is likely you probably also assume the top execs will be taking self imposed pay cuts too……id--ts.
They will likely just freeze it and allow no new entrants and no new growth.
Was hoping for an agent buy out offer. But more and more, it sounds like they know they can’t run this thing without us deflecting all the heat from customers.
There is no need for them to buy out the pension. Their liability is now capped and calculable based on actuarial tables and other analytics. The pension has been overfunded for years so there is plenty of money to let it play out over the next several decades. If you leave the company and your pension net present value is less than $5k I believe they cash you out and they know the turnover rate for younger, less tenured employees and they have the pension NPV for those employees handily available just like we have the Future Value available on our benefits page.
It’s fully funded and not causing them any trouble, so there’s no reason to get out.
Several years ago, there was a law change and I was offered the chance to cash out. (Had pension as an employee, but had gone to agency). The choice was mine to make. I direct transferred the money into my IRA.