I retired from XOM recently. I received info in the mail this week that anyone receiving under a certain $ amount monthly from the pension plan would no longer be a pension plan participant, as MetLife will now control this due to a group annuity contract XOM purchased from MetLife. This su-ks, or is it a good thing? One less tie to ExxonMobil. Any others receive this information?
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The cutoff was $1600 per month.
Because MetLife can't make deductions for Med/D/V, we were given 20 days to make a direct payment (or be dropped from the plans) and setup autopay.
Annuities, typically you contribute a lump some, then years later, you receive small payments, including interest, for a set term, when the money runs out. This plan was was obviously set up years ago. Pretty sneaky! And yes, when the money runs out, that's it. Good luck. As someone wrote above, yep, no federal oversight anymore, but it shifts to the Insurance Commissioner in the state where you reside. You can cry to them, when the payments stop, but hey, a deal is a deal.
Far from the first time EM has shafted us. Taking away the prescription plan for retirees and putting them on Medicare D, which is based on income (boo-hoo for the wealthy pensioners with big monthly annuities and other income streams), or taking away the whole life insurance for life.
How do they get away with this?
If true, this is a very bad thing. When the pension gets contracted out, you lose the federal pension insurance for employer plans.
You should have taken the lump sum and be done with these guys
Most companies stop offering pensions long ago. Benefits keeps getting cut. Salary stagnation except for those who made it to the top. They get huge compensation packages. Promises broken on all counts. And we treat them like Gods when they throw out a few morsels.
Thank God, I already put my request in for a lump sum on the pension. They’ve quoted a number.
$1,600
What was the $ amount?
Pension Risk Transfers should be illegal but being rammed in
Writing on the wall that pension is next thing to be cut.