Thread regarding State Farm Insurance layoffs

Any of you bother to read the financial disclosures of our pension? It is currently OVER funded to the tune of $4 billion. All these layoffs will likely only increase that situation.

The pension is costing State Farm next to nothing (admin costs only) right now and will continue to do so for years and years, maybe decades.

This is actually a problem for SF. Sooner or later they are going to have to offer a more generous 401k match as the pension has less and less relevance to employees today who expect to change companies every few years. But offering a better match is just going to be a straight up cost increase to the Farm with no opportunity to save money on the Pension side since it’s over funded.

Your pension is safe.

Companies that freeze pensions have a common denominator-they are experiencing financial challenges or struggling to meet pension funding requirements. These requirements were increased in 2006 by an amendment to the Pension Gurantee Act.

In March SF announced PH surplus of nearly 100 Billion, a record high and the strongest financial position in it's 96 year history. It is likely over a 100 Billion at this moment. SF typically funds it’s pension liability at a 100% or more. If you are looking for signs watch to see what happens at the Board meeting next week. If there is a significant contribution, think 1Billion or more, you can rest assured there are no plans for the pension. If no contribution to the plan and funding gap becomes wide that could cause concern. But with their superior financial strength that seems unlikely.

This is separate than the thought that some day newly hired or re-hired employees would not be offered a defined benefit pension but rather an enhanced 401K. That would align with other major employers.

I seriously doubt this is fake news, I currently work there and some say they are looking into freezing the pension. It would be up to the individual for retirement through 401k. Very few companies do pensions and it is costly. People need to take the blinders off their eyes.

More fake news! Please make up something new, this pension nonsense is old and boring!

Pension going to freeze unless u are living under a rock with all these cuts we are down to half in my team spread the work

Yep I am sure your TM is attending the Board meetings to obtain his insight LOL!

QTD is the last on vesting for Pension, looks like they are shaving all benefits down to just 401k match my TM said today

Good luck to everyone Allstate did the exact same thing a couple of years ago I can here it now it’s how we are going to keep us competitive

QTD is Qualified Termination Date. It has nothing To do with the comments made on here about pension system. Qualified termination date is the date they sat for your departure if you were getting voluntary or involuntary severance. You must stay until that day in order to collect your severance.

I’m in an unaffected area. Can anyone fill me in on what QTD stands for?

The pension info can be found on-line. If the present value of your pension is under $5,000 they can cash you out. Other than that, the money stays in the pension fund until you retire.

My manager said look to see the pension frozen, can we take the money with us. I cant find anything online on pension rollovers. I presume I can take my 401k.

There is no buy out of the pension coming. It is totally funded which is highly unusual for the few companies that offer a pension. Interest rates are rising which lessens funding going forward. You can just leave and get your formulatic payout-always an option.

When is the buy out on the pension coming

I’m ready to roll out of here, out of the 10 in my unit 3 are left. It’s time to go

What about Systems in Bloomington?

RE: They pulled this with Proximity last re-org. They didn't have jobs for everyone, but didn't give a QTD. They told the employees that they would be working other jobs for up to 18 months.

I wouldn't have even thought this was an option for Wave 2 but as its been months of them giving the same old line about "no approved transition plan and no QTD", they're definitely up to something.

And they'll spin it as saving people from losing jobs. They'll want your gratitude.

Just give the severance and let people leave on their terms. Keeping angry people in jobs they don't care about is a detriment to the entire workforce.

Dupont jobs being filled by Tacoma and Dupont employees based strictly on seniority and clearly not job performance. Managers have no say in who's hired - given lists coming from HR. Not sure how many companies survive letting good people go while keeping less than good employees just because they've been in positions for years. Apparently SF is being run like a union - FYI - public companies usually reward performance and opt to keep the best people.

@TusmZfl-1cxa - They pulled this with Proximity last re-org. They didn't have jobs for everyone, but didn't give a QTD. They told the employees that they would be working other jobs for up to 18 months. A number of people got fed up and either retired or just left. Either way, the company wins.

No theyve already said there will not be jobs for everyone. So the comment sbout saving QTDs for the last second, how is that working? Are they getting severance?

About 500 people will be let go in systems alone in just a couple months. They save the QTD's to the last legal second.

Surely they can’t be letting more people go. I would hope there are jobs in other areas/locations for all those cut.

Wave 1 org chart for understaffed/maintained along with over staffed selected for gap positions posted. Effective date July 14th. Wave 2 still waiting to hear something mid-June. No QTD or transition plan announced. BS