That's the word in the street, as shareholders wants their checks and current employees are paying attention about Chevron's being able to honor it's pension program. If dividends go belly up, shareholders flee. But are our pensions protected?
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lump sum taken = no risk of pension default....wait and wait and wait or take the annuity and sure you are tied to the health of the company, the same company that is responsible for the creation of this message board. If you are 59.5 this year and you have not retired and financially can, then you deserve high interest rates which will tie you to the annuity and you will wake up every day wondering if the ship sank or has the new ceo pulled your ol company out of the stink. A company ran by gamblers and staffed with indecisive sheep that are afraid of their own shadows. What happens to your lump sum if the interest rates double? if you keep waiting the right time you might lose more than you think, make sure you fully understand what is at stake.
I too retired from Chevron. It was a year ago before age 40. Just saved as much as I could so I could get away from a totally screwed up company. I had the epiphany in 2012. That was the point at which I made my early retirement plan. Never been happier. No more wallowing in mud with pigs, no more BBS, Diversity Action Plan, We Lead, OE Moments, CSOC Feedback to give and receive, Brain-dead Decision Review Boards, PowerPoint slides scrubbed and sanitized by upper management before government or partner meetings in an effort to cover up Chevron's sins, and the list goes on and on. Chevron has been a quagmire of non-sense and really bad managers for years. It is a sinking ship.
Please access the following link to become more informed about how PBGC would handle payments. It will depend on years of service and the overall picture does not seem encouraging at all as !!! http://www.pbgc.gov/about/factsheets/page/multi-facts.html
I am not a retiree but have put 10+ years in Chevron and it would be really sad to see my pension reduced because lack of funding. As of January 2014 (as published in Chevron's annual notice) we have a shortfall of about 1B, not counting the new people getting into the pot as a result of these org capability adjustments (already talking like HR, look at this...).
The more informed we are the better because once you put your foot out you are on your own...no more Chevron Way for anything.
I can't upload pics to this board, but maybe I can paint a picture in your head for to see how I'm enjoying my retirement... I'm typing this post on my iPad tablet sitting in my recliner in my living room... Butt Naked and totally comfortable. No more work, no more stress. Oh, hold on... I hear my wife in the kitchen. Honey, please bust open another brewsky when you're finished in the kitchen. See folks, that's retirement. Lov'in it.
Seriously why wait, so you can get an extra year's salary if you are lucky enough to not land a job in the rom. Pensions are not fully guaranteed and the inputs to the sla change as does the interest rate for the lump sum. Bail out with a low interest rate and take the lump sum, amazes me how many smart people waste so much time showing up each day to work doing absolutely dick except for yammering on about retirement, shit just do it and enjoy your life. I wish I could load pics so I can show you what you are missing.
Pension is in s trust. It's not paid for general company assets. They could suspend the pension though and you wouldn't receive any additional credit going forward. Doubt that happens because the pension funding level will increase as interest rates rise and will likely not require substantial contributions for the next few years.
Yes, our pension plan is backed by the Pension Benefit Guaranty Co. ( www.pbgc.gov ) I think the limit is around $50,000 / yr.. In my opinion, still more secure than a lump-sum would be in my hands as alzheimer sets in.
The new actuarial tables will bump up the lump-sum amount by roughly 5%. Not enough to make up for the rising interest rates between now and 2016! Should not have any impact on monthly penion calculation. Last i read, the new tables may go into affect 1/1/16.
You're pension is protected by the federal government. That does not mean you get 100% of it if the company goes belly up. Oh and don't forget. Pensions are about to be under even more funding pressure when the IRS releases the new actuary tables.
Oh shit being a short timer I did not even think of the pension! Thanks Outsmart them.....great info!
Opt out of this primitive ROM system like I am doing, get your lump sum (so you don't have to worry about the company defaulting on the pensions...BECAUSE under certain provisions they CAN!!!), wait a couple of months for Watson to fully remove his mask and come clean on the dividends strategy (he will have to show his ass in the next call, that is for sure) and pick up some shares below 50 within your 401K. Take 10min to review the 2014 Pension plan funding status and things will be more clear for you...and please realize that 30% of Chevron funding in the pension plan comes from company stocks. Staying in this place waiting to be spared you while it runs out of cash is not what we would call in Chevron a good "DQ spider"