This was never told to me and is not on the brochure they hand out about retirement benefits. I just found this out via Reddit (classic) and posting it here for anyone else who wasn’t aware. And before anyone gets sassy and says I could have read the fine print, go eat a Moonpie and chill.
50 replies (most recent on top)
False @bwvh+1qnmtbj6. There are vesting rules, yes, but it’s not just two options. Also, a company can provide fund ownership immediately.
I believe vesting schedule is set by law. The company can choose one of two schedules: (1) 3 years to complete vesting, or (2) graduated vesting over 5 years (i.e., 20% after each year). As someone mentioned vesting used to be 5 years but the law changed around 2001-2002 after Enron.
If you want to leave them go. You will spend the 3 years of 7% match on a shrink to help you forget you even worked here ZZ it’s not worth it.
Yes thanks for clarifying. Good explanation @4str
@OP, just a clarification that the company match doesn't vest until 3 years. It is pretty extreme, but it is a healthy match (7%). If you leave early, you leave real money on the table - so it incentives company loyalty for fresh hires.
The other frustrating thing that is not mentioned is the requirement to contribute minimum 6% (all or nothing) to qualify for company matching.
3 years to vest your 401k?!! dayam that's brutal.. I guess they have a culture of respecting the employees huh?
@1tig+1qnmtbj6 neither class you mentioned is offered. All we have is Reddit, this site, and a prayer
I was today years old
@1cin+1qnmtbj6 who hurt you?
It used to be 5 years to vest. Another brilliant move by corporate - why waste not only 14% of a low salary but also avoid two years of lost production for the entitled milking the system. And you don’t even need to use the PIP card. Cut your losses early - like it should be.
@1erm How’s the brochure faulty? What, did you have trouble folding it or something?
There’s this thing called a computer. You can turn in it on and type stuff into it and find out about even more stuff, like Exxon’s 401k plan:
https://www.exxonmobilfamily.com/en/finance/savings/your-contributions-and-the-company-match
Somebody here was bent out of shape about having to scroll down to find this. Get one of your grandkids to help if you have issues. Happy new year (not really).
Reading the fine print, EM can do anything with the 401K matching, vesting, and what not. Remember that EM also halted the matching in 2020 during the down cycle. We hit the peak few months ago and we're going down the cycle again and who knows what the next 401k decisions might be.
Careful, @1gvb+1qnmtbj6. I had my financial advisor study the plan and I’ve got it 🤑. Quite literate. The problem is with the lack of communication and misleading information presented.
@1pup+1qnmtbj6 Correct, no class or onboarding. You meet in an auditorium and they call your name. You’re given a (faulty) benefits brochure, laptop and cheap headset… and sent off on your way. No speech, no slides, nothing.
If the welcome to em class is no longer offered that is pretty sh---y. That is where HR covered all of these type of topics. Search the intranet for an old slide pack. Someone probably saved it on a share point. Pretty sad if this is the state of the company these days. The onboarding training used to be excellent but HR has been gutted by DW’s cost cutting just like every other department.
Welcome to exxonmobil or early career financial class is no longer offered? Check career connect.
This is a basic 101 level concept and in no way unique to EM. Spend some time learning about personal finance. Sadly most adults these days are clueless when it comes to personal finance concepts.
Literally the first bullet in this overview article on 401k vesting
https://www.investopedia.com/401-k-vesting-rules-5323652
Welcome to the real world. You don’t get spoon fed everything like in college these days. The real world isn’t a safe space.
The one I laughed at is people who act surprised when they have to pay back relocation or education reimbursement. Don’t people read what they sign or the fine print anymore?
@1ohg+1qnmtbj6 There is no “welcome to ExxonMobil” class
@1uvc+1qnmtbj6 all we talk about are our plans to leave
Don’t new hires talk to each other anymore? I guarantee someone in your peer group knew this.
When I was a new hire it was common knowledge and discussed in the welcome to exxonmobil class as well. Many people quit at the three year mark due to this. Next milestone is pension vesting.
Can’t believe they stole the election.
@vcn So in other words, anyone with two brain cells and internet access could have looked this up themselves.
I guess we can go ahead and delete this entire thread now. Your link isn’t even an internal website. Anyone with a single functioning finger could google this.
@1bxu+1qnmtbj6 scroll down, Pops.
@OP You can literally Google this $hit:
https://www.exxonmobilfamily.com/en/finance/pension/key-terms
I guess all the REs are blaming the company becuase they didn’t read the 401k info? Do I have this right?
Is this what’s driving all the PTSD and human rights violations at EMHC? I thought that was due to the hot-desking and cleaning bathrooms. Maybe we can have the international Red Cross air drop some diapers for you…muahahahaha😂
This is sort of a vestigial system from when EM was geared toward long-term hires and wanted to incentivise people to stick around. 3 years wasn't a big deal in the face of a 30 year career. Now, even though long-term careers here are mostly out of the picture management sure doesn't seem to be in any rush to update the compensation model to fit a high-churn organization. Anything to stick it to employees I guess.
What's with all the down voting for the factual response to the OPs question re: vesting of company matching contributions? Alot of you may be upset that the Company wants so.e return on thier investment, or your notion that EM is transparent in this, but it doesn't change the fact that for most there is a minimal 3 year vest. There's alot to mad at while working at EM, but this isn't one of them.
It's rare that company 401k matches vest immediately. 3-5 years seems to be a pretty common period. Your contributions and earnings should vest immediately though.
@mzy+1qnmtbj6 cute
I am shocked at the restroom situations I encounter in the office. Does no one clean them? Are we cutting back that bad?
@emo+1qnmtbj6 I do what I can
@isp+1qnmtbj6 Never, fails, to, amaze, me, that, we, employ, people, who, are, too, stupid, to, punctuate, correctly.
Never fails to amaze me, that we hire people who are too stupid to understand their benefits.
@OP the Moonpie reference is comedic gold https://youtu.be/BphfkhYX0uY?si=IKjLrGzagYUBAKby
Clearly they are being misleading by not including it on any hard copies or handouts.
And not here: https://www.exxonmobilfamily.com/en/finance/savings
But making you scroll to the VERY bottom to find it here: https://www.exxonmobilfamily.com/en/finance/savings/your-contributions-and-the-company-match
@dsf+1qnmtbj6 Yeah, those days are gone.
It’s not on the benefits brochure. Only the website. It was also never verbally communicated during the interview process or
orientation. But pass me one too, @ntr+1qnmtbj6.
Onboarding must have changed over the last few years. When/before I joined the company, it was made very clear that the vesting period for the company match was 3 years and the pension was 5 years.