That last paragraph just shocks the hell out of me. So you’re telling your employees that they are in a waaaaaaaay too competitive environment with getting a better pension, and then you’re going to take it away so they can be in line with their own competition? Wtf? That company is unbelievable (and not in a good way).
Supreme, why are we surprised about anything AIG does? After all, we did have to bail their sorry butts out on the subprime mess to the tune of $182 Billion. Before that, they got caught in the bid rigging scandal with Marsh Mc. I don’t think anyone was sent to jail on that either.
Enough with the pseudo-outrage. Have you ever managed a business? If your expenses are higher than your competition, and you are in a commodity business which much of insurance is, of course you need to look at trimming expenses. Pension plans are unpredictible. Paying people not to work makes no sense. A 401k is the norm for most employers. Long overdue.
I’m still turning over in my grave trying to figure out how an insolvent insurance company is given a few hundred billion dollars, and yet within a few years figures out a way to give it back and actually have a positive net worth and a stock value above zero.
They didn’t have no Chartered Accountants back in my day, but most educated people managed to get through grade school, and they would know that something weren’t too kosher in all this.
The last time I checked, there was only one man who ever died and came back to life to speak to us.
By the way, the founding fathers might be rolling over in their graves if they saw what was happening in this country, particularly in the last 7+ years.
All these conversions from a defined benefit plan to 401k’s will create an unmitigated financial disaster for many employee’s in the years ahead. 401K’s take discipline and the guts to go through trying financial times which are part of life, without dipping into the fund. For those that can weather trying financial times, you’ll be fine. For all others, figure on social security only for retirement living expenses. A real disaster waiting to happen all for the benefit of…you guessed it…your loving shareholders.
rocket, I believe Individual IRA’s are also allowed if one does not want to depend on company’s retirement plans. One should protect themselves because they could get the shaft from an employer.
This is not rocket science. Why would a publicly traded company spend money on a pension that nearly no other companies offer? Americans have a complex that when something is taken away, we feel taken advantage of. This is capitalism.
Also, after speaking with a friend who works for AIG, she stated they are giving employees another 3% in their 401k even if the employee doesn’t contribute. So AIG already matches the first 6% and then another 3%. So 9% total, where do I sign up??? Beats my lousy 4.5% match.
“Also, after speaking with a friend who works for AIG, she stated they are giving employees another 3% in their 401k” – the article at hand also confirms this.
…but wait, I don’t really think they are finished. What has been done in the past is no indication of what will be done tomorrow or next year. This is just the start of a downward trend at AIG. Keep tuned for more changes.
Not Rocket,
Sounds great until the drug addicts on Wall Street bet all the money away. Poof – retirement gone. 401K is just another product of Reaganism. No wonder it’s already failed once. It will fail again.
Planet, have you signed up for the Obama Federal Government retirement plan (Not Social Security)? I hear it is a good deal for you. Good luck cashing it in some day as there will be nothing left in it.
401K is an employee savings plan that the company may or may not contribute to. (Ford motors stopped during the auto crises) So it’s not in any form a pension plan. So no “switching” it’s termination. Knowing AIG they will probably match with AIG stock, like Enron.
I think Hancock is doing a short savings to increase profit margins to make himself look better in front of stock holders. Eventually, he’ll have to do another short sighted thing as fire a ton of people.
I heard from a worker at AIG the pension plan was the only thing that was enticing perk to work at AIG. Who cares about the company giving 3% more to a 401k when your pay is frozen (yes frozen!) for a half decade. If my pay was frozen for half a decade plus, I’d jump ship. No real talent is going to stay with a private sector company that pay as much a government position.
I wonder which is more effective at riding employees of a company, firing them or freezing pay and removing benefits?
J, per a more current article, AIG just trimmed 400 jobs from senior management people in their latest episode to cut expenses. It said that it represented 23% of their management people.
So, again “who’s” surprised at Hancock’s latest Town Hall, looking to Nix more employees. Basically stating, “No employees job is permanent”.
And Mr.Billionaire Investor ” Carl Icahn” has complete pull in what’s going on within the company and welfare of the employees.
Wanting to cut the company into three parts? He’s way more than an investor ! Read the last article on “Business Investor” from October 28th 2015 !
Personally, I think the company is “once again”, in trouble Hancock can’t handle it & is letting Icahn call the shots so he’ll keep investing….at the expense of every employee !
That last paragraph just shocks the hell out of me. So you’re telling your employees that they are in a waaaaaaaay too competitive environment with getting a better pension, and then you’re going to take it away so they can be in line with their own competition? Wtf? That company is unbelievable (and not in a good way).
Supreme, why are we surprised about anything AIG does? After all, we did have to bail their sorry butts out on the subprime mess to the tune of $182 Billion. Before that, they got caught in the bid rigging scandal with Marsh Mc. I don’t think anyone was sent to jail on that either.
Enough with the pseudo-outrage. Have you ever managed a business? If your expenses are higher than your competition, and you are in a commodity business which much of insurance is, of course you need to look at trimming expenses. Pension plans are unpredictible. Paying people not to work makes no sense. A 401k is the norm for most employers. Long overdue.
This is what surprises y’all?
I’m still turning over in my grave trying to figure out how an insolvent insurance company is given a few hundred billion dollars, and yet within a few years figures out a way to give it back and actually have a positive net worth and a stock value above zero.
They didn’t have no Chartered Accountants back in my day, but most educated people managed to get through grade school, and they would know that something weren’t too kosher in all this.
Joseph Randolph, you are in a grave? Technology has come a long way.
The last time I checked, there was only one man who ever died and came back to life to speak to us.
By the way, the founding fathers might be rolling over in their graves if they saw what was happening in this country, particularly in the last 7+ years.
All these conversions from a defined benefit plan to 401k’s will create an unmitigated financial disaster for many employee’s in the years ahead. 401K’s take discipline and the guts to go through trying financial times which are part of life, without dipping into the fund. For those that can weather trying financial times, you’ll be fine. For all others, figure on social security only for retirement living expenses. A real disaster waiting to happen all for the benefit of…you guessed it…your loving shareholders.
rocket, I believe Individual IRA’s are also allowed if one does not want to depend on company’s retirement plans. One should protect themselves because they could get the shaft from an employer.
I’m shocked!………shocked!
This is not rocket science. Why would a publicly traded company spend money on a pension that nearly no other companies offer? Americans have a complex that when something is taken away, we feel taken advantage of. This is capitalism.
Also, after speaking with a friend who works for AIG, she stated they are giving employees another 3% in their 401k even if the employee doesn’t contribute. So AIG already matches the first 6% and then another 3%. So 9% total, where do I sign up??? Beats my lousy 4.5% match.
Not Rocket Science:
“Also, after speaking with a friend who works for AIG, she stated they are giving employees another 3% in their 401k” – the article at hand also confirms this.
…but wait, I don’t really think they are finished. What has been done in the past is no indication of what will be done tomorrow or next year. This is just the start of a downward trend at AIG. Keep tuned for more changes.
Not Rocket,
Sounds great until the drug addicts on Wall Street bet all the money away. Poof – retirement gone. 401K is just another product of Reaganism. No wonder it’s already failed once. It will fail again.
Planet, have you signed up for the Obama Federal Government retirement plan (Not Social Security)? I hear it is a good deal for you. Good luck cashing it in some day as there will be nothing left in it.
Hancock needs to freeze and switch all over AIG to earn that near 12 million dollar payday!
401K is an employee savings plan that the company may or may not contribute to. (Ford motors stopped during the auto crises) So it’s not in any form a pension plan. So no “switching” it’s termination. Knowing AIG they will probably match with AIG stock, like Enron.
I think Hancock is doing a short savings to increase profit margins to make himself look better in front of stock holders. Eventually, he’ll have to do another short sighted thing as fire a ton of people.
I heard from a worker at AIG the pension plan was the only thing that was enticing perk to work at AIG. Who cares about the company giving 3% more to a 401k when your pay is frozen (yes frozen!) for a half decade. If my pay was frozen for half a decade plus, I’d jump ship. No real talent is going to stay with a private sector company that pay as much a government position.
I wonder which is more effective at riding employees of a company, firing them or freezing pay and removing benefits?
J, per a more current article, AIG just trimmed 400 jobs from senior management people in their latest episode to cut expenses. It said that it represented 23% of their management people.
So, again “who’s” surprised at Hancock’s latest Town Hall, looking to Nix more employees. Basically stating, “No employees job is permanent”.
And Mr.Billionaire Investor ” Carl Icahn” has complete pull in what’s going on within the company and welfare of the employees.
Wanting to cut the company into three parts? He’s way more than an investor ! Read the last article on “Business Investor” from October 28th 2015 !
Personally, I think the company is “once again”, in trouble Hancock can’t handle it & is letting Icahn call the shots so he’ll keep investing….at the expense of every employee !