After giving new CEO $300 million, GE freezes pensions for 20 thousand employees.

Discussion in 'Career, Work, Finances and Education' started by OckyDub, Oct 8, 2019.

  1. OckyDub

    OckyDub is a Verified MemberOckyDub I gave the Loc'ness monstah about $3.50
    Site Founder The 10000 Daps Club

    Aug 12, 2015
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    The planet of Memory Corpses
    Try this in a European country and see what happens.


    “GE hired a new CEO last year with a pay package worth up to $300 million.”

    Workers are stuck “paying the ultimate price for executives’ poorly-timed deals,” said Our Revolution on Monday after General Electric announced it was freezing the pensions of roughly 20,000 employees with salaried benefits.

    The company is also offering a lump sum payout option to approximately 100,000 workers who’ve not yet begun taking pension payments, GE said in its Monday statement.

    The changes become effective January 1, 2021. At that point, affected workers will neither accrue additional benefits nor be able to contribute to the plan.

    “Returning GE to a position of strength has required us to make several difficult decisions,” said GE’s chief human resources officer Kevin Cox, “and today’s decision to freeze the pension is no exception.”

    The actions, as CNN Business reported, were made “to help clean up the company’s beleaguered balance sheet.” Yet, as progressive observer Miles Grant, they contrast greatly with the sweet deals the company gives its CEOs.

    The AARP has previously cautioned against lump sum options, warning they represent a bad financial move for individuals.

    GE closed its pension to new entrants in 2012, adding to a trend of companies shifting away from traditional pensions. It’s a shift progressive observers say bolsters the case for expanding Social Security.
    mojoreece dapped this.
  2. ControlledXaos

    Squad Veteran Most Valuable Player The 1000 Daps Club

    Aug 21, 2015
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    I had the option too take a lump sum of about 45k cash or wait another 20 odd years to retire and get about 1k a month. I figured I would live to at least age 70.

    I could have used that 45k at the time but I knew better. Future Me will thank Past Me for that.
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