Pension Consolidation

[MAKAVELI]

Putting the same hourly contribution directly in to our 401k's would be an easy sell.

Weakening the Teamsters won't be.

 

[UpstateNYUPSer(Ret)]

Weakening the Teamsters won't be.

Are you sure about that?

 

[MAKAVELI]

Are you sure about that?

Why would the membership be ok with weakening the union?

 

[UpstateNYUPSer(Ret)]

Why would the membership be ok with weakening the union?

Depends which age group you are talking about.

 

[MAKAVELI]

Depends which age group you are talking about.

Not just age group. Areas that have pensions in good shape would never vote to eliminate it.

 

[upschuck]

Weakening the Teamsters won't be.

Central voted out of the IBT pension plan in 07, I believe, we're doing ok.

 

[MAKAVELI]

Central voted out of the IBT pension plan in 07, I believe, we're doing ok.

Out of the IBT, but not eliminating your pension in favor of a 401k.

 

[upschuck]

Out of the IBT, but not eliminating your pension in favor of a 401k.

I don't see the difference, IBT still negotiates the amount contributed, instead of it going to the pension, would go to 401k, I'd be all for it if it would go into the Roth 401k.

 

[MAKAVELI]

I don't see the difference, IBT still negotiates the amount contributed, instead of it going to the pension, would go to 401k, I'd be all for it if it would go into the Roth 401k.

There's a huge difference in the security of a pension vs a 401k. The Roth contributions would also be taxed as income where your pension contributions are not.

 

[UpstateNYUPSer(Ret)]

I don't see the difference, IBT still negotiates the amount contributed, instead of it going to the pension, would go to 401k, I'd be all for it if it would go into the Roth 401k.

Unless the IRS changes the rules the contributions would have to go in to the traditional.

 

[upschuck]

There's a huge difference in the security of a pension vs a 401k. The Roth contributions would also be taxed as income where your pension contributions are not.

They both have the positive and negative points, I'm fine with either one.

 

[upschuck]

Unless the IRS changes the rules the contributions would have to go in to the traditional.

I figured as much. Would be nice if the Roth was an option.

 

[Trackless in brown]

the 401k is a failed experiment...period

 

[Jackburton]

the 401k is a failed experiment...period

Curious as to why you believe that.

 

[IVE GOTTA PACKAGE 4U]

Curious as to why you believe that.

It only fails because people don't invest enough and make knee jerk reactions when the market drops.

 

[Catatonic]

the 401k is a failed experiment...period

but a pension is?

 

[Catatonic]

Weakening the Teamsters won't be.

They could be weaker?

 

[DriveInDriveOut]

but a pension is?

They have different goals, but both are failed experiments.

 

[Catatonic]

They have different goals, but both are failed experiments.

Why is a 401k failed?
I have almost 1M in mine ... I need to know if there is a problem?

 

[DriveInDriveOut]

Why is a 401k failed?
I have almost 1M in mine ... I need to know if there is a problem?

Your anecdotal evidence aside, it really depends on perspective, and what you think the goal is.

30 percent of Americans have no retirement savings at all. Of the ones that do, the average 401k savings for someone at retirement age is around 100k. If the goal is to save for retirement, that's a failure.

If the goal of a 401k is to funnel money to wall street, and allow the upper middle class to avoid taxes, then it's a resounding success.