Pension deductions?

104Feeder

Phoenix Feeder
If we were given pension money in an account just like our 401k I think everyone could amass a sum for retirement. You would have to take away the ultra safe investments like the stable value fund though so that people, in a panic, couldn't sell low and transfer the funds to a very low interest investment or only invest ultra safe their entire career.

I think it would be foolproof. Just like a pension though, returns could be less then envisioned if a person happens to work during a crappy 30yr period.

UPS wouldn't want to do this though because IMO the turnover rate for drivers would increase if the money was portable.

Here is the reality
The Retirement Crisis: Why 68% Of Americans Aren't Saving In An Employer-Sponsored Plan
 

104Feeder

Phoenix Feeder
y
They wouldn't have a choice. Money would be put into a 401k by the company.

We are a long way from mandatory 401k participation, and it seems to me that doing so would be reinventing the wheel. We already have mandatory participation the pension funds.
 

Ms.PacMan

Well-Known Member
To work there would need to be changes to the 401k rules. Loans and withdrawals would need to be severely restricted.
Yes, loans and withdrawals would have to be abolished altogether. It would not be a 401k - there is actually a name for this type of "pension" plan but I can't think of it off the top of my head.
 

Ms.PacMan

Well-Known Member
y


We are a long way from mandatory 401k participation, and it seems to me that doing so would be reinventing the wheel. We already have mandatory participation the pension funds.
I think we're talking around each other. I thought this had evolved into a discussion about alternatives to a pension plan that would leave us more protected.
 

104Feeder

Phoenix Feeder
I think we're talking around each other. I thought this had evolved into a discussion about alternatives to a pension plan that would leave us more protected.

The pension, at UPS, is never going away as long as the Teamsters are representing us. To discuss what should be done as far as the retirement crisis as a whole in the Nation, I would first suggest the return to Unions & unionism & defined benefit pension programs. For industries that unions are not a good fit, or for workers in general, mandatory Roth 401k plans and participation would be my second choice.
 
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