I've heard a couple of things about how the partner pension amount @ PwC is determined, both similar in approach.

Both calculations I have heard of result in an annuity paid until death, at which point a surviving spouse (if any) receives the annuity.

The first calculation I have heard is that you get 80% of your highest earning year as a partner (e.g. If your best year was $1M, you'd get $800k as an annuity).

The second calculation I have heard is that they look at your three highest earning years as a partner, and take the second highest and you get 100% of that. (e.g if your three highest earning years were $1M, $800k, and $1.2M, you'd receive $1M as an annuity).

Is ANY of this true, or just all rumor? Any PwC partners that can chime in and explain the pension plan fact for fact? Perhaps with sample numbers?

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So if I'm a manager trying to decide if I want to make the push for partner or leave for industry your answer is "wait till you're in a development program"

Totally unhelpful for the potential future leadership of the firm

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It's complicated. If you want to share a burner, I'm happy to do it 1:1

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Perfectly stated, PwC 2. Thanks for the help, PwC 1 🙄

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I think it's salary not total comp

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None of the above is correct. This will all be explained to you when you make the partner candidate development program.

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What is above used to be completely correct for EY

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If this is true, it's substantially better than EY's partner pension.

I heard the D pension is the best, but that sounds great

When do you get into this development program. As SM ?

Not the percent. Nowhere near 80%.

Partner pension is capped at EY. $400K I believe.

So, the pwc plan is better than they EY plan if you work 20 years at both firms. But, the pwc plan is 100% unfunded and the EY plan isn't.

At pwc, its a factor of your 20 highest, contiguous earning years adjusted for inflation.

I hope you don't mean 20 years as partner

Yes. 20 yrs as a partner. That's where the pension caps out.

Thanks. Can you elaborate on the factors that determine the actual payout? Any illustrative examples you could provide?

Does anyone actually believe that this is sustainable for the next 20 years?

P1, that would be great, thanks - burner = my.fishbowl.burner@gmail.com

I don't think it's sustainable. That's why I left big 4. The firm I started off at has seen their bill rates raise substantially while I saw the proposals I was building for papa D only increase their discounts. The only reason they stay alive is that you can't get fired for hiring them. A few large enough PR events and they are both bankrupt and toast as brands.

Arthur Anderson part deux

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