Partner Pensions in Big Law Forum

[doc1991]

Does anyone know what type of pensions are offered to retired partners? Particularly the bigger Chicago firms, Kirkland, Sidley, Winston, Mayer, etc.

[Sackboy]

Does anyone know what type of pensions are offered to retired partners? Particularly the bigger Chicago firms, Kirkland, Sidley, Winston, Mayer, etc.

My understanding is that partner pensions are largely a thing of the past. I remember reviewing the pension documents at a V50 I worked at, and I can't remember if their plan was frozen or if the benefit was just dramatically cut, but, regardless, I remember thinking wow "the boomers got a great deal" and "oh, I guess new partners get something OK." It's kind of pointless if we're talking partnership at any of the firms you mentioned, because if you did 20 years in any of those partnerships you're going to be incredibly comfortable for the rest of your life.

[Anonymous User]

My firm offers a cash balance plan fo partners. It drops $50-60k a year into it for each partner.

[Anonymous User]

Does anyone know what type of pensions are offered to retired partners? Particularly the bigger Chicago firms, Kirkland, Sidley, Winston, Mayer, etc.

My understanding is that partner pensions are largely a thing of the past. I remember reviewing the pension documents at a V50 I worked at, and I can't remember if their plan was frozen or if the benefit was just dramatically cut, but, regardless, I remember thinking wow "the boomers got a great deal" and "oh, I guess new partners get something OK." It's kind of pointless if we're talking partnership at any of the firms you mentioned, because if you did 20 years in any of those partnerships you're going to be incredibly comfortable for the rest of your life.

I hate when the firm makes us review their plans. Our firm used to have 1 plan and associates used to get profit sharing. Sad.

[Anonymous User]

IDK about current market, but I know a former partner (V20 NY) who retired over a decade ago and gets nearly half a mill in pension income each year (until death, I suppose?). That era of partners paid for it (in a sense) upfront with somewhat lower partnership draws — but still, not a bad deal.

[Anonymous User]

This was definitely a "thing" for a long time in biglaw and I've heard of retired partners (talking retired in their 60s) still drawing e.g., 500k per year just in recognition of their years at the firm, which is insane. I think firms everywhere are trying to phase this out and tbh it makes sense--that's a hell of a profit overhang to commit to as a retirement benefit and it increases the risk to the firm's current capital structure if it's not very carefully managed.

[Anonymous User]

My firm deposits $40k or so into 401k plan accounts for partners. Pension plan was frozen a while back.

[Anonymous User]

The 500K-1M/year-type pensions still exist at some of the top NY white-shoe firms (e.g., Cravath, DPW, STB), and vesting is still open for new partners.