A Question for people with Pensions regarding Social Security

[bleedingheart]

I have a pension with my company (a new thing for me since I never had one before).

However my pension payments later are calculated on what I will reap from Social Security. I don't have the calculations but basically...the more I get in Social Security income, the less I receive from my pension...this is no joke...

I am young and very far from pension age at this point but I find this system kind of odd and wanted to know if others had this kind of situation.

[FloridaPat]

1. I have read that some people with pensions ended up with no pensions

because of SS. Companies seem to think they are allowed to get their share of the money back and they use pensions to do it. This affects the lower incomes then the higher ones. Anyway, this one company I read about ended up taking all the pension away because of the math they were using. Pensions are big bucks just sitting there. Several companies have bought annuities and taken the money and run. US Steel pension plan went under a couple of years ago. The pension insurance is broke. Corporations want all that money. Keep track of your pension as you work.

[bleedingheart]

2. That is how I am feeling about this "pension" program at my

company. The calculations are so confusing and there are many caveats. Plus they have been reworking this "code" so that now many of us have no clue as to what the hell it represents for us.


Funny how the republicans are not rushing to defend the people who are being screwed out of their pensions?

[FloridaPat]

3. Yes, real funny.

[Warpy]

4. They'll do anything to rob your pension

including sell the company out to a predatory corporation who will then simply cancel the debt that those pensions represent or loot the company and then cast if off to declare bankruptcy, pensions and all.

Don't count on a pension. The lesson we older boomers have to teach you is that you'll get ripped off every time.

[bleedingheart]

5. Oh I am not relying on a pension at all...

in fact I think that it is funny that the republicans preach that social security won't be there for people but yet it has been the only reliable source of retirement income for the elderly...

me and the hubby are just paying off the house and packing away cash for the kid's education and retirement.

[Coastie for Truth]

6. The "Old" (Pre-ERISA) formula was

(1.35% to 1.5%)
Times
(Years of Service)
="Core Pension"
Minus
One half of Social Security
="Net Pension"

Was fairly common for "non-union" employees. But now everybody has gone to "defined contributions" (like a 401(k) - with or without an employer match).

[mcscajun]

7. Any pension you do not personally contribute your own money to

in some fashion isn't worth the paper it's explained to you on…

Glad to see you're not counting on it.

I had a "defined benefit" plan years ago, and yes, there was a "Social Security Offset". Didn't matter, 'cause years back the company changed our "defined benefit" plan to a portable retirement account; I took it all with me when I left and rolled it into an IRA. :)