The day after 3rd quarter earnings were announced the company I work for sent an email to all management employees announcing that there would be no future payments into the pension plan. What is in the pension plan will be frozen at the end of the year. What that means is that my pension as calculated for 12/3o/2009 won’t change regardless of when I retire. For me this is a good thing. I was going to lose my highest earning year and going forward my pension would have been somewhat less because of that.
While I say that this is a good thing for me it is another sign that the economy is not turning around. Everyday some company is announcing more layoffs. One department in my company recently announced a 30% reduction in their workforce. Some of that 30% is made up of union employees. The company had to give a 60 notice to the union when reducing union jobs. The management employees have already been let go.
More to follow I am afraid.
Filed under: "work related" | Tagged: economy, retirement |
Jackieinpdx's Blog 
That is not a nice surprise, for a company to stop contributing to retirement? Wow – you are right, things are still bad, it seems.
Here is what the press release said. The company expects the change to the Qwest Pension Plan to result in annual savings of approximately $60 million, and the 2010 salary freeze is expected to save the company about $35 million in 2010. Along with other changes to employee health-plan and life insurance benefits, total savings would amount to approximately $100 million in 2010.
Jackie, it doesn’t seem to be turning around on this coast either. Usually at this time of year, I am working 5 days a wek–I’m lucky if I get 1 day & that’s because someone is out sick. But we have always been savers & I am close to SS age.
Ann, The company I work for has over 30,000 employees nationwide. It seems it doesn’t matter, small or large or what the industry is the economy just still sucks.