Was a very detailed post on expected benefit reduction/elimination timelines deleted??
29 replies (most recent on top)
This article claims that the trend is Pensions coming back into popularity:
https://www.nytimes.com/2023/11/24/business/pension-retirement.html
Well this didn’t age well
The deleted post I’m assuming that’s being referred to, considering that I no longer see it basically read…
- New hires beginning Jan 1, 24’ will not get a pension.
- If an employee has less than 5 years of service at Jan 1, 24’ they keep what pension they have but the company no longer contributes to it
- Employees who have 5+ years of service by Jan 1, 24’ are grandfathered in and keep the pension.
This is not a validated source, just what I can remember the poster saying.
I think if XOM was to do away with the pension, they better be ready for a hostile work force til people find other jobs. There is 0 reasons or benefits to sticking around with XOM of they did this. Especially after we watch the hand out bonuses and pay raises to upper management on what seems to be a yearly basis. People will leave in droves. Why stay and make less money while losing the 1 major benefit that separates them? Seems like a big F U to the people actually making the company it's money.
Have to wonder if the high interest rates making the present value of the pension to roll over is a driver as well
I'm at a represented gulf coast site and I heard from a union guy that they have on their docket (is that the right term?) to discuss pension elimination and reducing 401k match to 5%.
Interesting connection between eliminating pensions to enable broader PIP target range.
What ages and EM years of service are protected from PIL?
I think 52, 53, 54 are protected as NRE. And 12, 13, 14 years of service for persons of retirement age are protected as NRE.
Is that the only groups safe from PIP layoff system?
Does anyone have any legit news on if this is actually planned to happen?
Just catching news on this… for those that work In represented sites is there any real talk on this for negotiating terms? I am not surprised after being cut for a year on 401k and the constant need to explain that they are saving money so the 401k won’t get taken again. Clear message of hey f—- you we really saved for our 50+ % salary bump for the CEO and we don’t give one sh** about dedicated long term employees. The VPs need to think long and hard before announcing this on all fronts.
This all still sounds like rumors and speculation.
@3tlo Chevron's pension has been worse than them EM pension since 2008 for new hires. It's worth about half of the EM pension.
@1hhn Good luck with that.
Chevron still have (better?) pension than Exxon. Chevron also have higher company anything saving plan.
Exxonmobil is late to this move. What other US companies have done to eliminate pension liability is to provide an enhanced 401K with an extra amount, say 5%, which represents the nominal value of a pension. At that point the employee retirement needs are considered to be fully provided. The Company can then eliminate anyone for cause at any time without liability for NRE. The transition is simple, there is a grandfathered choice given to age 40+ population to continue in the current or accrue the value of their pension to date, roll it over into the 401K and start receiving the enhanced 401K payment. This scenario is highly credible and long overdue. I'm sure his post will be taken down.
So if an employee has been here for 10 plus years but not at 15 yet. Don't they have an implied contract with XOM for those years and to continue. Established agreement? There has to be a legal process to hold them to it!
Last year of pension plan is 2024 for non union US employee
A big reason to get rid of pension is that it eliminates all the games around PIP and NRE. You can PIP anyone at any age once pension is gone. NRE is an artifact of a pension system and avoiding lawsuits around the pension.
Remember the pension issue is only a US workforce issue. Most of XOM employees are non-US and under different plans. Basically US workforce is high cost in every respect compared to our international employees. More Work from India on the way
If the pension disappears in 2024 there will be an exodus of employees both young and old for better paying jobs in the HC10 countries.
Unless you are very good at picking your investments in the VOYA 401k plan you will have financial difficulty in retirement (even after 30 years of work) under the VOYA plan which has limited investment options.
Freezing the pension and dropping it for new hires makes sense - it's a liability for any kind of large scale M&A the CFO would do (buying or selling). And frankly no one left in HC10 countries has any illusion about a long-term career anymore, so why bother continuing to maintain the facade at such a large expense? So yeah I can easily see the pension disappearing in the next couple years.
To the poster bellow me, you might wanna try scrolling down, cause @gsn already reposted what's being said.
I read it too. It was taken down. Probably because it's true.
The minute I stop accumulating time on my pension, I look for another job.
Even if this were replaced with a bonus, I wouldn’t trust any ‘arbitrary’ payout. I think we know how that will go. I could at least find a company with an established track record of bonus payouts.
The minute EM started targeting 50% compensation band (cough, cough…competitive compensation), they doomed themselves. Their policies aren’t as good as they think, so 50% is more like 30-40% once you really get into the details.
When the Houston Campus was still offering Late Career Retirement Courses for the employee and their spouse, the Ernest & Young (EY) consultant that ExxonMobil hired for the two-day course told us that ExxonMobil was only one of a handful of Fortune 100 companies that still offered a traditional pension and parallel matching 401K.
The EY consultant went on to tell everyone that he did not expect ExxonMobil to continue the traditional pension for very long. My guess is that the 2024 target as summarized in this thread is credible. If it wasn't, ExxonMobil would not have insisted that TheLayoff.com delete the thread.
Looks like we are going to continue to accelerate departures of young and old employees to reach our regular employee targets. No new hire in the last five years should expect to take advantage on a very lucrative pension after 30 years with ExxonMobil.
And if you can Lump Sum that pens-ee-on, then do it.
S Aramco won't respect it down the road. Or congress.
A whole thread got deleted for copyrights violation - it was a copy-paste of a whole news article without naming a source (this article: https://finance.yahoo.com/news/14-companies-still-offer-pensions-100000381.html).
Unfortunately, the post everyone is talking about was in replies.
IMHO, the person who wrote the reply was just trolling, but in case someone is interested, this is the basics said in that post:
The poster said that the pension is going away in 2024 -salaried employees first, followed by ending for union during next contract; starting Jan 2024 new hires won't have pension at all, and current employees time will be frozen next year and that won't accumulate additional time. The post also stated that in 2025 401(k) for salaried employees will be reduced to 5%.
That's about it, as far as I remember.
It’s true I am going to get rid of the pension and reduce 401k… someone needs to pay for my huge bonus
Yeah - rumor was pension getting suspended next year and a reduction in 401k match in 2025. Not sure how true any of that is.
I can't find it. It was probably true.