Not so fast. The company changed the basis for calculating discount factors just 7 years ago, a real blow to the vast majority of the workforce in terms of pension benefits.
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It very unlikely that you will lose your XOM pension, regardless of market conditions. ExxonMobil's pension obligations have, for almost the past 40 years, been completely funded. Beyond that, a healthy portion of the company's pension obligations are insured (underwritten) by the PBGC (look it up). The company has not changed the formula for pension benefits calculations for quite some time. The benefit grows significantly from ages 50 to 62 and then levels off as imputed Social Security benefits kick-in. This does encourage individuals to retire around 62. There is some financial benefit to be gained from sticking around after 62, but most stay because they enjoy the work and the people. Deciding to leave between 50 and 62, with any respectable length of service can be punitive to one's pension. The Lump Sum option is always available vs. the Annuity. Which option to choose is always the source of angst by those considering retirement. Unless you have a terminal disease, the decision is a toss-up.
Lose? Probably not. Will it go away- probably, but will happen by freezing the pension now, prohibiting new employees from entering.
CVX pension uses 1.1 factor vs EM using 1.6 factor. When CVX cuts pension, XOM will follow. CVX match is 8%, I expect XOM to cut pension to 1.1 factor but restore matching at 7 or 8%. No significant pensions in any other US or IOC.
5 yr @ 50k is nice addition to severance. I'm also sure people in the 80s were saying something similar about career prospects.
For short term employees it does not matter. You have to work at least 15 years to have anything worthwhile. So, good luck surviving 15 years of hunger games :-)
New employees will not get any pensions in the future. Almost all companies have stopped pensions.
Anyone leaving the company can elect to take a lump sum regardless of age (with a penalty). It's quite literally on the goto/pension website.
If by “pension” you mean some money you’re entitled to for working at least 5 years with the company, that’s likely to still be around (with some caveats) for PR purposes. After losing your job you can collect it at 65 (or 60 with a discount). Good luck if that’s still decades away. If the company chooses so, they might give you a (heavily discounted) lump sum now.
However, “pension” at EM used to mean full pension, at age 60+, most likely with 30+ years of service. That’s how it used to be until a few years ago. Around 2016 they started offering incentives for early retirement; that’s also a thing of the past and now you’re lucky to get anything, even 75% of the pension at age 55, when they PIP you off.
The new rule of thumb is that if you have more than 20 years service ( and you’re not a manager), you’re becoming too expensive, so you’re going to be laid off (if below 52) or PIPed off if you’re RE. This is very similar to service companies, where hardly anybody retires, not because they don’t have a pension benefit, but because nobody trusts they’re ever going to see a full pension, so everybody jumps ship for the slightest better job.
Mobil used to be like that before the merger - as soon as you reached 50 they would find a way to get rid of you. So the full, real pension that used to be a crucial reason to work for EM and hang in there is going away, stealthily.
Pensions? Pensions?
Somebody's thinking in the 20th century here.
Strawberry Fields etc.
If you can leave with a Lump Sum pay-out - take it.
Pensions are done most everywhere - even in the govuhment.
No, federal law requires companies to reserve funds every year to meet existing pension commitments, so you will have at least the cumulative benefit of what you have earned. But, EM at their discretion could stop the pension, or could no longer offer the pension to new employees. But what you have earned is yours based on years of service, age, etc. EM can also change the rules as to whether it is portable, the basis for the discount factor, how it is calculated, etc.