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UPS Union Issues
The State of the "Union"
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<blockquote data-quote="104Feeder" data-source="post: 1094435" data-attributes="member: 42554"><p>You've pretty much summarized the Corporate line against pensions, and it's pretty much all wrong. Corporations have shed pensions because they no longer feel any obligation to their employees after retirement (and not much before), not because they are inherently risky. Any pension that falls into the PBGC will receive, in most cases, more than 50% just look at these tables: <a href="http://www.pbgc.gov/wr/benefits/guaranteed-benefits/maximum-guarantee.html" target="_blank">Maximum Monthly Annuity Guarantees, Pension Benefits</a> The limits are set by ERISA each year. Sure, it's not a dollar-for-dollar guarantee, but it's a lot better than nothing which is exactly what your 401k could bring you. </p><p></p><p>401k's have been sold to employees as a "better" alternative to Pensions, but really they are not nearly as secure and often fail to live up to the hype. If UPS were to replace our Pension with a typical 3-5% match that would cut their current obligation under the WCT by almost $15000 per year per full time employee. Great deal for Scott huh! Also, several times in every quarterly 401k statement it mentions in bold: <strong>NOT FDIC INSURED, NOT BANK-GUARANTEED, MAY LOSE VALUE</strong> because people like yourself seem to have some inpression their money is safe in a 401K. The only way to come close to making sure it's "safe" is to put it in the Stable Value Fund and watch inflation eat it all up (which I have seen more than one mis-informed co-worker do). What a deal! Then, of course, you are forgetting that putting $1 into the regular 401k fund is more like $.68 in retirement because it's taxed, and putting $1 into a Roth 401k is an actual dollar, but that assumes that Congress won't renege on the deal to tax that money in the future which might be quite a gamble in the current climate. </p><p></p><p>Our WCT pension doesn't need to be mobile, as if you are vested (5 years) it's there when you need it and since it's a multi-employer plan you can work for any participating employer and your money is going into the same plan. Mobility has been sold as a false benefit, as in the past working for different employers produced multiple pension payments at retirement so what's the problem? I know of many Teamsters who will be receiving a WCT pension as well as a pension from their military service, I don't see them complaining about mobility. </p><p></p><p>Pensions are designed to reward employees for long service and loyalty, something valued in companies with long solid histories like UPS. All 401k's & mobility have done is cause every wise employee to be looking for the next job once they land the first one....this is better? </p><p></p><p>I'll stick with my Western Conference of Teamsters Pension plan in addition to a Roth 401k thank you very much.</p></blockquote><p></p>
[QUOTE="104Feeder, post: 1094435, member: 42554"] You've pretty much summarized the Corporate line against pensions, and it's pretty much all wrong. Corporations have shed pensions because they no longer feel any obligation to their employees after retirement (and not much before), not because they are inherently risky. Any pension that falls into the PBGC will receive, in most cases, more than 50% just look at these tables: [url=http://www.pbgc.gov/wr/benefits/guaranteed-benefits/maximum-guarantee.html]Maximum Monthly Annuity Guarantees, Pension Benefits[/url] The limits are set by ERISA each year. Sure, it's not a dollar-for-dollar guarantee, but it's a lot better than nothing which is exactly what your 401k could bring you. 401k's have been sold to employees as a "better" alternative to Pensions, but really they are not nearly as secure and often fail to live up to the hype. If UPS were to replace our Pension with a typical 3-5% match that would cut their current obligation under the WCT by almost $15000 per year per full time employee. Great deal for Scott huh! Also, several times in every quarterly 401k statement it mentions in bold: [B]NOT FDIC INSURED, NOT BANK-GUARANTEED, MAY LOSE VALUE[/B] because people like yourself seem to have some inpression their money is safe in a 401K. The only way to come close to making sure it's "safe" is to put it in the Stable Value Fund and watch inflation eat it all up (which I have seen more than one mis-informed co-worker do). What a deal! Then, of course, you are forgetting that putting $1 into the regular 401k fund is more like $.68 in retirement because it's taxed, and putting $1 into a Roth 401k is an actual dollar, but that assumes that Congress won't renege on the deal to tax that money in the future which might be quite a gamble in the current climate. Our WCT pension doesn't need to be mobile, as if you are vested (5 years) it's there when you need it and since it's a multi-employer plan you can work for any participating employer and your money is going into the same plan. Mobility has been sold as a false benefit, as in the past working for different employers produced multiple pension payments at retirement so what's the problem? I know of many Teamsters who will be receiving a WCT pension as well as a pension from their military service, I don't see them complaining about mobility. Pensions are designed to reward employees for long service and loyalty, something valued in companies with long solid histories like UPS. All 401k's & mobility have done is cause every wise employee to be looking for the next job once they land the first one....this is better? I'll stick with my Western Conference of Teamsters Pension plan in addition to a Roth 401k thank you very much. [/QUOTE]
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