Exxon has no intention to get rid of the pension because we will never have to pay it. We PIP you at year 13 or 14 so the pension costs us nothing. On paper we are one of the few companies offering a pension, but financially it costs us nothing. We are brilliant marketers!
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So who actually manages the xom pension? What does it get invested in?
I like having full control over my money and where it goes. At my new company they just give a % match (401k) and then they add an additional % as a savings contribution (regardless of employee contribution). The employee is able to allocate all of that as they see fit (within the 401k plan options).
Then you add yearly raises and bonus. To me that just makes it easier to keep track of on a paycheck to paycheck basis as opposed to a pension where so much would be out of my control.
A bird in the hand is two in the bush. If you’re young and have 5-10 years, get out and put that money to work.
Exxon is going to FU-K your pension by using lower wages and inflation to their advantage. Smart and evil move on their part.
I used the pension calculator and have to say I was underwhelmed what I saw. If you want the real inside story there is a Facebook group called ExconMobil retirees. Many retirees in there constantly complaining about how their benefits have been changed for the worse since they retired. Going with Obamacare over retiree medical plan, cancelling life insurance due to big price hikes, etc.
Take your lump sum and quit. Invest the lump sum wisely in stocks. Go get a different job with yearly bonus and without forced ranking. You will come out ahead.
OP is right, and if anybody has any doubts it means they haven’t understood anything from what happened in the last two years.
It’s simple: pension will continue to exist, but only HiPos promoted to management will live to see it. Non-sponsored employees are expandable non-entities that will work as long as they’re reasonably cheap, then they will be laid off or PIPed or whatever works before they get to 52 (when they would become protected as NREs and would eventually claim a pension at 55, albeit amputated by 25%).
Of course, employment termination and job relocation to BTC might also occur much earlier than age 52.
EM’s pension does still exist for those who are already NRE or REs. Beyond that it’s purely a smoke screen. Don’t “mistakenly” mix these two situations.
Also don’t pretend that the heavily discounted lump sum that you can get if terminated after at least five years of service is a “pension”. It’s just a cheap way for the company to pretend that it has honored its obligations to the employees.
Our non-service and post retirement expenses were reduced by 37% from 2019 to 2021 based on our Annual Reports and mandatory SEC filings.
Our retirement expense should continue to shrink for the next several years as headcount is reduced.
Year Non-Service Pension and Post Retirement Expense (millions of USD)
2015 $2,099
2016 $1,835
2017 $1,745
2018 $1,285
2019 $1,235
2020 $1,205
2021 $786
2022 tbd
2023 tbd
At 65yo, I got a pretty fair EM pension after 35 years of work. I am not rich; nevertheless, everyday forward will be a vacation, including this day :). Good luck to all!
Lump sum numbers are not shown in the estimator if retirement date is before your 55th birthday.
@cez+1g3pBhCw
Not the OP, but the pension cost to the company does increase exponentially in the final 5 years the employee needs to retire. That seems to be the carnival game the company played with the layoff.
And to all the folks that retire after many years with this great company.
GTFO troll… pensions do get paid for everyone that’s vested (year 5)