Covert Pension Buyouts?

Are covert pension buyouts happening? Below are two posts from the past month, do you believe them? As a guy with 12 years in I’m very interested.

“I’ve heard of an employee who quit earlier this year that had less than 15 years but was vested. They received a significant lump sum check over 6 figures.” Post ID: @1sia+16LqNSG7

“I know of 3 people who were cut or quit recently. All had over 5 but less than 15 years. They received a lump sum pension check in the mail. They did not file for it or even know it was coming. Their 401k is still in tact as they rolled it over into a new plan. The check was not from their 401k. To those saying people are confusing 401k with pension, I can tell you that when you have $200k in your 401k and you get a check for $275k while your 401k balance remains the same, that money is not coming from the 401k. You’re vested after 5 but it doesn’t get real sweet until 15+. It was discounted but it was a pretty good chunk of change. They all 3 mentioned HR and the benefits people did not mention this happening, yet it was a pleasant surprise for all 3. In the end, you will get something if you have over 5 years.” Post ID: @1qoa+1764cAGb

Last year GE started offering buyouts of their previously frozen pension.

https://www.forbes.com/sites/baldwin/2019/10/20/how-much-is-ge-shortchanging-pensioners-taking-lump-sums-use-our-calculator/amp/

Search “bogleheads ge pension buyouts” for more examples.

Even if this doesn’t happen for years, I think its important for people here to start looking at the math and learn from the GE buyouts.

Comment! It's anonymous!

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All of you are incorrect! XOM pays more than the federally allowed amount into your pension fund. The excess goes into a separate fund maintained for you. It is distributed in lump at your leaving the company as taxable income. These amounts are about right for a > 10 year employee that makes mid 200’s. This exta $ is the reason people retire 1Q or 2Q in a year as it is additive to your salary and often pushes you into a higher tax bracket. There are no selective buyouts.

To get a $275k pension buyout after a few years, the party would have had to earn ~$2M to $3M annually. (The formula is online for XOM employees). But this “settlement” would depend on which country the party lists as Home. The voluntary program program in Australia generates different package than the PIL in the US. In the US, XOM employees are vested after five years of service, and company owes you a pension. If you terminate, you are ineligible for a lump sum, and have to wait until retirement age of 65 to receive an annuity. You can request early payment of benefits at 50, which includes a penalty since you withdrew early. Standard stuff and all listed on HR website. Maybe Australia rules or PIL rules allow for a lump sum exception? I am an experienced hire and received pension check from a college internship (small $, but was truly unexpected), and from previous employer. If you hired into this company and do not understand your benefits - whose fault is that?

Love how half this thread is people providing stories of pension buyouts and the other half is people completely denying it. I don’t know which side is right, but (shockingly) I think a lot happens outside of the written rules.

I've posted before. They were selectively buying out pensions last year. 5.1 Years of service, quit in 2017. They offered to buy my pension out for around $38K Gladly took it as it was literally free money for surviving 5 years at XOM. Justed rolled it into my IRA.

Tons of people I know who also left in 2017/2018 never received an offer. So who knows what the criteria was. Given the math, an index fund should easily outperform and I left XOM because me and many others saw the writing on the wall.

Former XOMer here (6.5 years total so minuscule pension), in 2017 I was contacted (via mail) by XOM about pension buy out , I didn’t take it because cash down the road might be nice (now wishing I took it).

I haven’t seen an offer since, but just so you know it does in fact happen.

The layoff.com has jumped the shark. This dumb @ss is not an employee because the company doesn't offer any lump sum for the pension.

I banish you troll to the Chevron feed!

When you leave a company that has a pension plan, you always have the option of either getting your accumulated pension money (vested) or keeping them in the fund to take a pension at the designated time. Reading this forum i am surprised how clueless some people are. We know who PILed them but who hired them I n the first place?

@ gsq+17ckDieG people who are vested actually are entitled to their pension money based on the “terminee” crtieria of the pension system. The company buys them out so that they don’t have the pension obligation to that person in the future.

Sounds like the ole bleeding heart ExxonMobil to me. Heard they don't do layoffs either... such a great company.

People don't have a clue about their benefits and investments at this company. Not at all surprised that fired people would think they got some "free" money somehow. lol

Doubtful. Most likely just hearsay and people not getting the full story. I don't think the company would just give away stealth lump-sums to people that otherwise wouldn't be entitled to receive them. Maybe at some point they will negotiate deals to entice people to leave, but they wouldn't terminate people go and just randomly give them even more money out of the goodness of their hearts!

Don’t know the amount but confirmed it happens, don’t know the criteria

What kind of salary would you have had to have to score a $275k pension buyout lump sum check with less than 15 years?

Thread regarding ExxonMobil Corp. layoffs

Covert Pension Buyouts?

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