Is there a reason behind deciding to remove company matching (401k matching is very common) vs removing pension contributions in future (pension is less common in other industry).
This doesn't seem like a straightforward decision. Maybe someone has more insight on such strategies?
There’s no evidence, just the same few trolls that come on here with made up stories to get people worked up. Most likely they are disgruntled under performers that were laid off and have nothing better to do.
Even if the company did decide to freeze pension, there’s literally not a single thing anyone can do about it until it actually happens. So what’s the point of speculation?
Where are you seeing this information? I have not been informed that the 401 match is stoping.
Companies continually examine employee benefits, and the cost of those benefits. They they make decisions based on how they feel any changes will impact the overall mood of the base and what financial gains they will get. As has been done in the past AT&T has traded pension for 401(k). companies have to manage pensions for long periods of time, however they get paid to manage 401 plans, and most employees take the money when they leave. Some of us had no choice but take our pension. Offers to cash out pension, lets the company reduce the number of people they have to manage and reduces the pension risk. T pension is well funded, and actually the pension owns a large share of the wireless business. All information is available to participants of the plan, by logging into Fidelity.
“ Where can we view the state of the plan wrt funded levels?”
They’re required to (and do) send annual notification re: the state of pension funding.
And the “grossly underfunded” allegation is inaccurate. T pension is adequately funded for its obligations as of last report.
“Now the T pension is so grossly underfunded...”
Where can we view the state of the plan wrt funded levels?
" I doubt T has a way to rob our 401K"
Rob? No.
But eliminating or reducing the employer match is pretty straightforward. A match is not something an employer is forced to do.
I would be tempted to say it is because of tax consequences, but I not an accountant.
I think it is more likely that if they do the pension first, it is because the Ratty and Stinky thieves know how to get to the pension $. For a 100 years, the T pension was the most over funded pension in the US - mostly because of all the people that dropped dead before they could collect a dime.
Then back in '98 T figured out that they could rob the pension by paying retiree health benefits out of the pension rather than out of operating expenses thanks to a Klinton era Executive Order - another theft enabler.
Now the T pension is so grossly underfunded that I bet they will have to borrow more $ to pay out all the lump sum benefits that we will be demanded if they were to freeze the pension and everyone MR75 eligible were to leave like I plan. Maybe that would cause it to go bust entirely.
On the other hand, I doubt T has a way to rob our 401K. That is completely separate. However, I am sure the Kongress IDI0TS have plans on robbing our 401k all drawn up!