16 replies (most recent on top)
SF will never be able to keep top talent now. Only reason you put up with all the BS was a pension. Now new people won’t last more than a year once they realize the everyday sh*t show.
Every day you gain a little. If you have been around a while 15 years plus, you are going to get some guaranteed life time income. Not a bad deal. If it gets frozen, you should not lose benefits accrued unless the company goes belly up.
Quite the opposite actually.This now places a cap on the pension obligation going forward. And it will shrink over time as mortality takes it’s inevitable course. This should reassure all existing employees-plus the fact it is currently funded at a remarkable 100%.
To me this news is concerning. I left the farm with vested pension benefits and I have no plans to return. The issue I have is for current vested employees. Those who are still 20 plus years away from retiring should be concerned because this is just the beginning. State Farm will slowly peel away the pension for current employees by converting the plans or offering buyouts. They've laid the tracks down and this train is starting to move. This clearly gives State Farm the upper hand. Current employees who are unhappy must now mull their future with a different mentality. Can't leave State Farm then try and come back to pick up where you left off in terms of the pension. Personally, I am in a better state of mind after I left State Farm. I am happier and doing better financially. I took what they taught me and left. It was hard because the pension aspect dug at me. But once I got over that, I was able to breathe. With this news about the pension being discontinued for new hires and rehires beginning 2021, my decision not to come back is permanent and that is fine with me. There is life after State Farm and it is GREAT! To current employees, I hope the pension is there when you retire, otherwise, truly, it would have all been for nothing, especially if that was your sole purpose for being there. Good Luck.
For the “union” crowd. Do a quick search and you’ll see that many failed, underfunded, and corrupted pension plans are those major unions. Stop thinking that unions are somehow run by saints who have only your best interest at heart.
This is great news for everyone.
No new employees are going to stay and work at slave farm long enough to get a pebsion. Wake the fuuuuuuuck up.
Another huge mistake by leadership. Only one reason to do it...Greed...Tipsturd & leadership are using their positions to line their own pockets. It's clear they don't care about companies interest just their own greed. Bye bye SF you're done.
you all seem to think this is a done deal . just because they aren’t freezing the pension today doesn’t mean it won’t get frozen tomorrow . don’t get too comfortable .
As long as you are vested, they can't take anything you have accrued to date. Now just hope the PBGC doesn't get removed by the anti-employee party. If they hate public pension benefits (except their own), what will they do to private pensions given the opportunity. All this provided the company can't meet its future obligations.
IF SF had taken away the pension from current employees those calls for a union would be getting louder.
It will be a 4% match plus a 3% non-elective contribution. Which means you will get 3% no matter what but will have to put in up to 4% of your own money to get the additional 4%.
7% is pretty good in today’s market, but I’m relieved they keep it whole for current employees. Most companies have freezed their plan and converted everyone over, screwing current employees. Most of us knew there would be a change at some point, and now we can feel good we aren’t impacted. Thank you SF.
And new employees will know up front what their benefit is, so they can consider it as one piece of the overall compensation package to decide if they want to come on board. That seems fair.
This is just modernizing, and being done in a way that is respectful to current employees, especially ones who have been with the company for a longer period of time and have not had the opportunity to grow their 401k as much as they may otherwise have had it not been for the pension offering. I’m grateful for the pension, and that it is not being taken away (which would really piss me off). That being said, it’s really sad though that companies and employees do not have the kind of trusting, mutually respectful, and long-term relationships that were more common in the past.
This is very good news for existing employees-no freeze, no reduction. Current pension obligation is nearing 20 Billion and is 100% funded, that is extraordinary.
Nah. They might get more $$$ added to their 401k, but they pension is easily worth a $1m for a person with an average mortality...so in the end...it’s only more money if they save more...and a lot more at that.
but they get a new and improved benefit / retirement package to make up for it