NukeWorker Forum
Career Path => Money Matters => Topic started by: Jake1134 on Feb 17, 2012, 10:47
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Greeting everyone, I am new to this site and the industry. I am in the hiring process with Exelon for a security position and am wondering if anyone knows anything about their pension plan. All it says on the benefits page is that we are entitled to a pension plan at no cost to us (the employee). Anyone know exactly how the pension if formulated? They also offer a 401K with up to a 5% match. Thanks.
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Greeting everyone, I am new to this site and the industry. I am in the hiring process with Exelon for a security position and am wondering if anyone knows anything about their pension plan. All it says on the benefits page is that we are entitled to a pension plan at no cost to us (the employee). Anyone know exactly how the pension if formulated? They also offer a 401K with up to a 5% match. Thanks.
They are all different, you need to go back to HR with the question. I would surmise that they will provide additional information when you are actually hired.
Re: the 401K, if you can do it put in the 5%, it's like getting a 5% raise from the get-go! ;)
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Thanks, and I already plan on contributing 5% right off the bat. I would be stupid not to.
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Greeting everyone, I am new to this site and the industry. I am in the hiring process with Exelon for a security position and am wondering if anyone knows anything about their pension plan. All it says on the benefits page is that we are entitled to a pension plan at no cost to us (the employee). Anyone know exactly how the pension if formulated? They also offer a 401K with up to a 5% match. Thanks.
Exelon has gone to a 7% cash balance pension plan. They put 7% of your base pay into a fake account which is then invested in a long-term bond (or something similar). I don't recall which specific investment it was, however, I thought it was a decent, safe choice for something such as my pension. You cannot change where they put that money. You will be fully vested after three years.
The 401k match is slightly more complicated than a 5% match. As long as you put in 5%, they will immediately match 3%. At the end of the year you can earn up to 3% more based on the company's EPS (earnings per share) for the year. This year, we received 2.2%, and last year it was the full 3%.
You will be able to purchase Exelon stock at a 10% discount, either for your 401k or as a separate investment. They also pay a yearly bonus based on the performance of your site and the company as a whole.
Congrats on the new job!
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So how much can you expect to earn from your pension once you retire and is it based on a percentage of your highest average monthly salary or your ending base pay? Let's say that I work 34 years and want to retire at age 62, what would my pension amount be per month assuming I am a regular officer making 60,000.00? I am assuming the 401K will be around a couple hundred thousand if I contribute 5% and it is matched by at least 5%, that is not calculating interest or any other growth, just the contributions. I am new to the private sector retirement benefits, so thanks for any clarifications.
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So how much can you expect to earn from your pension once you retire and is it based on a percentage of your highest average monthly salary or your ending base pay? Let's say that I work 34 years and want to retire at age 62, what would my pension amount be per month assuming I am a regular officer making 60,000.00? I am assuming the 401K will be around a couple hundred thousand if I contribute 5% and it is matched by at least 5%, that is not calculating interest or any other growth, just the contributions. I am new to the private sector retirement benefits, so thanks for any clarifications.
Cash balance is invested at long term treasury rat (30 yrs) plus an additional 1% I believe...so thats 4% interest at $4200/yr for 34 years which is about $300,000 lump sum. For the 3% match on your 401k investing at 8% stock market return it would be another $300,000 after 34 years. You can plug these numbers in 401k calculators on line and change the assumptions. And no it doesnt go off a formula percentage of final pay......thats a defined benefit pension. Of course the 5% was your own money you have placed in the 401k, so I didnt calculate that as a company benefit...but that would be another $500,000 or so at the ened of 34 years investing at 8% annual assumption.
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The cash balance pension is basically an IRA in your name run by the company. There's no magic number of years of work to reach. When you leave the company, whether after 3, 17, or 32 years of service, you get whatever's in that account in the form of a rollover IRA. Which means you can't access it til you're 59 1/2.( Well, you can, but it'll cost you a bundle in penalties and taxes).
Someone told me long ago to throw as much money as I could into my 401K, and to take advantage of any other company sponsored stock discounts or tax sheltered accounts...it was good advice.
Congrats on the new job.
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Someone told me long ago to throw as much money as I could into my 401K, and to take advantage of any other company sponsored stock discounts or tax sheltered accounts...it was good advice.
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