A pension plan is an employee benefit where an employer commits to periodically setting aside money that will be made available to the employee once they retire. To dictate how much money will be contributed, companies typically establish a formula based on employees’ base pay and years of service. Though no longer a common employee benefit, here are five companies that offer pensions.
5 Companies That Offer Pensions
- The Coca-Cola Company
- Procter & Gamble
- Southern Company
Companies That Offer Pensions
U.S. retirement benefits at food and drink industry staple Coca-Cola includes the Coca-Cola Company Pension Plan. Once an employee retires, they can opt to have this company-funded cash balance account paid out as a lump sum or in lifetime monthly installments.
Procter & Gamble produces a range of household consumer goods, including well-known brand names like Pampers, Tide, Bounty, Pantene, Dawn, Swiffer and Febreze. The company offers its employees a pension in the form of a P&G Stock Savings Plan. Procter & Gamble’s contributions are based on an employee’s salary and increase over time. Employees don’t need to contribute to this plan but can choose to do so.
USAA provides military families with a slate of insurance and financial solutions. Among the company’s employee benefits focused on financial wellness is a pension plan. Each year, USAA makes contributions based on an employee’s earnings and IRS limits. The account grows over time from interest credits.
Banking company Truist provides its employees with a 401(k) savings plan and pension plan. Employees who are at least 21 years old and work for a subsidiary that participates in the Truist Pension Plan become eligible for the benefit after they’ve worked at the company for one year, which must include at least 1,000 hours of service.
Southern Company is a utility provider operating several businesses that serve millions of U.S. customers. Its employee benefits package covers two retirement plans: a defined benefit pension plan and an employee savings plan. According to Southern Company’s website, its pension plan offering is “designed to provide employees with a monthly retirement annuity,” the amount in which is determined largely by an employee’s earnings and years of service.