Serious Question: What is your reason for staying especially if you had been with Enbridge for a long time? Enbridge had been laying off people since 2015 and obviously stockholders is more important than employees.
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I believe based on some people who previously got laid off who are in their 50s, they were given the option to wait certain age say 55, 60 or 65 for a monthly DB pension OR take a commuted value. Someone I know in Canada in his early 50s took the commuted value and invested the money itself inside a LIRA.
Now if you took the commuted value, depending on your location but here in Canada DB is governed by each provincial legislation. In Alberta I believe you can start tapping into it at age 50 or earlier if under circumstances that the legislation allows (dying soon, poverty, etc).
If you got laid off, ask your bank what are your options considering taxes and your personal financial needs. Everyone has different circumstances but ask questions about your options.
If you’re 59 you can definitely opt for monthly guaranteed pension for life. That’s the beauty if DB, it’s the gold standard of pension because it guarantees your monthly pension regardless of how much the total pension fund investment performance year on year. High level calculations, you need around 20yrs to get to 1/3 of your average best 5yrs pay. So if you have 9yrs service you’re probably looking at 15% of your pay as pension.
https://www.thelayoff.com/post/@1bcl+1qQJeDzT
Hypothetical --so if you are eligible for pension -stats 9 years of service age is 59-- and i am let go should i take the DB pension or take the commuted value??
If you remember Sears (retail that went bankrupt) they were also on DB. I know even the other big companies like RBC, Telus, Atco at least had long moved away from DB. The newer employees are under DC already and they contribute to it. If you get laid off from Enbridge and take the commuted value of your pension it might be better for you to manage it on your own.
Companies everywhere will try to take away DB, if possible. Indeed, 3M (Yes, the post-it note company) just announced they are moving away from DB.
The issue may not be how much, but certainity.
For DC, the company gives you, let's say $1000 a month contribution, and that's it. It is done done, and how much you get when you retire, it is on your own (more if you invest wisely, less if you don't)
For DB, the company commits to provide you a certain amount, e.g. 30 years from now. Unless the company dies, else they are required to deliver the committed amount.
Which one is better, all depends on whether you will/can stay with the company, will the company die and also how good you can invest yourself.
If you’re a new employee you will start with Defined Contributions until you reached 5yrs service then you switch to DB. That if you don’t get laid off before 5yrs.
It’s a cost advantage for Enbridge to layoff those who are in their 50s and give them their pension commuted value than actually servicing them as DB pension. DB is very expensive to service especially for a non contributory one like Enbridge offers. If you’re an employee confirm if this is fully funded.
A lot of companies had already moved away from it and already switched to Defined Contributions with employees contributing their match. This is what’s happening in Canada, not sure in US.
Why would they take away the DB plan? Its billions of dollars underwater and Enbridge is doing the legal minimum to comply with the laws around it maintaining it. Today its the cheapest option they can offer. Its another can they are kicking down the road while trumpeting what a great benefit it is. Will they honour the deal 20 years from now when you go to collect?
Is it possible for them to take away the DB pension plan? Based on what I’ve seen the ELT make decisions based solely on money, so I can’t see it lasting forever. I’m still early in my career so I’m curious if it will still be a thing when I’m at retirement if I make it through the layoffs.
The only reason for staying is........
a.) No matter what people say, the pasture may not be greener outside. No one knows whether the new employer will do the same - aka layoff
b.) You will see lots of people say I jump to a new job with 50% raise. Yes, it happens....but definitely not for everyone, else no one is working for Enbridge at this moment and everyone jumps already
c.) 650 people is only 5%, I may be the one of the "lucky" 95% keeping the job
d.) Last but not least, every single extra year I am working Enbrdige, my future severance pay package is bigger, and one year closer to retirement
There are some of us that are at a stage in our careers where leaving isn’t a good career move and getting laid off is actually terrifying.
Can only speak for myself but I’m someone who only has 11 years of service and didn’t start here until later in life. I work hard and am good at my job and am hoping to get to my 25 years here because going somewhere else, even if it pays comparable money, is not going to allow me to build up a solid pension. At the end of the day, other than the current layoff fears, this IS a good place to work and the pay/benefits are very solid.
If I was someone much younger I’d definitely be more interested in finding other opportunities.
I like money.
Enbridge has a reputation for every 5 years or so cleaning house. I've seen 25+, 30+ year people walked out... Loyalty is gone to the company. It's just a good enough, or a stable enough place to be. I don't know how many people truly "bleed yellow" rather just waiting till something better comes along.
I'm two years from retirement, well compensated and pretty much untouchable. So ... yeah.