Heard rumors of a pension freeze by year-end for non-union employees. Is GE legally obligated to provide notice or can they just freeze it at will? Anyone have info on this?
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I worked at GE a long time ago for 8 years. I got a lump sum offer letter in the mail last year out of the blue. I took the check. Took 3 months to get it. I have worked at Honeywell for 21 years more recently. There are about 10 different pension plans at Hon and you have to get a copy of yours and read it to know the rules - they are all different. HON is following the GE model BTW. I got laid off at 54 years old, got 21 weeks severance and that severance added to my tenure for pension calculation. I wanted to start taking pension ASAP and my pension plan had a early retirement option at 55. At first HON denied my pension request because I was not 55 when I left the company and said no $ until 65. I filed a formal challenge and it took 5 months but I was right. They can't lay a person off right before a pension date and deny it. There was fine print in my 25 page pension doc that said if laid off within 12 months of the date I am still eligible. If I leave on my own before 55 then no $ until 65. So I got a check for the months they didn't pay me and been getting a check every month. My advice is read your plan rules. Dealing with GE I would take a lump sum in a heart beat. I think economy will slow and w/o help GE will hurt and pensions are 1st thing to go.
GE pension closed to new employees in 2011 but employees hired before that date continue to accrue pension benefits. If the company freezes the pension, this would mean that these employees would not accrue any further benefits.
Did GE steal from the Pension Fund?
PBGC only comes into play in a bankruptcy (which ain’t happenin’). GE cannot cut your earned pension, only a bankruptcy can. The guarantees by PBGC are substantial...take a look at their website.
I think there is some bad info being posted here about the PBGC. They have a max rate they will guarantee per month and it depends on your age. Also, it appears that a surviving spouse would only receive 50% of the pension, GE's plan let's you chose between 100 to 50%. Bottom line for many who have been with GE for a long time, it is likely less than what you expected or planned for. https://www.pbgc.gov/wr/benefits/guaranteed-benefits/maximum-guarantee
Earned, vested benefits are guaranteed and insured by PBGC at that point.
They can’t change payout rate for earned pension. More Fake News being spread by the trolls.
How can they change the payout rate? Aren't vested benefits guaranteed?
Hourly nonunion?
keep in mind they are looking not just to freeze the pension but change the payout rate
When you are laid off, your pension benefit is frozen as of your last paycheck. Severance payments don’t add to the pension. You can check if your pension benefit amount is fully insured on the PBGC website.
What happens to your pension if they lay you off? It may be favorable to layoff people with a pension since it’s already underfunded by more than $31 Billion.
GM did the pension freeze 2 years before they went into bankruptcy. It’s not uncommon, unfortunately. You’ll see a lot more voluntary quits if they do (which GE probably wants).
read the small print, they may adjust at any time