Retirement...contract talks

[Brownslave688]

That would be a big hit for any new employees. 6% match versus over 20k a year into the pension plan.

And the sad part is the union fights their ass off to keep that 20k going into the pension every year.

If the employees demanded 401k contributions instead they'd say sorry 6% is the best we could do. Then 20 years later say see we told you you'd be better off in our pension.

 

[IVE GOTTA PACKAGE 4U]

And the sad part is the union fights their ass off to keep that 20k going into the pension every year.

If the employees demanded 401k contributions instead they'd say sorry 6% is the best we could do. Then 20 years later say see we told you you'd be better off in our pension.

UPS should have kept the thrift plan.

 

[Brownslave688]

UPS should have kept the thrift plan.

I've heard stories about some rich folks.

 

[IVE GOTTA PACKAGE 4U]

I've heard stories about some rich folks.

It was a nice way to have a little nest egg when you retired.

 

[oldngray]

UPS should have kept the thrift plan.

The only bad thing about the thrift plan was you could only put in a few dollars a week so it took a while to get it growing.

 

[IVE GOTTA PACKAGE 4U]

The only bad thing about the thrift plan was you could only put in a few dollars a weeks so it took a while to get it growing.

$6. Yes it was a small amount bit you didn't notice it.

 

[PT Car Washer]

The only bad thing about the thrift plan was you could only put in a few dollars a week so it took a while to get it growing.

I turned $6/wk into $60K before I got out. Now worth about $120K+. Not too bad for a poor dumb PTer.

 

[UpstateNYUPSer(Ret)]

We had several old timers who did quite well during the IPO with their Thrift Plan money.

 

[realbrown1]

A 6% match would be terrible.


I'm all for 401k but it should be defined contribution.

I don't know how terrible it would be?

A driver starting today would get $100 matched per week with $100 contributed himself.

That's $200 per week for about $10,400.00 invested per year.

On a 30 year career, that would be about $312,000.00.

Add investment returns to that, compounded interest, and you would be looking at well over $1 million dollars when you retire.

To get that type of return on your pension plan drawing $60k a year, you would have to live a minimum of 20 years past your retirement date, and still may never catch the continual investment return that would continue well into your retirement with a 401k plan.

A 401k plan is far superior, and safer.

But let's try and negotiate an 8% match instead of 6%.

It would still be far cheaper for UPS than the pension plan ponzi schemes still out there.

 

[twoweeled]

Those in the UPS pension may just get that.

UPS wants to eliminate a defined pension for new employees and have their "pension" be a 401K. I am hearing of a 6% match.

We will see if this gets any traction in the upcoming contract negotiations.

Not a total surprise to me. If UPS'rs are unwilling to strike, that'll eventually happen. I can't carry the math out completely, but that's only about $1100 a year max. That'll go up as the max contribution goes up every year (assuming it goes up every year), but that doesn't sound like it'll go up anywhere near what we have today. We were willing to take it in the shorts regarding retirement health, not giving a second thought, all of us will eventually be there. We will either continue to give up benefits, or we will have to strike. Bottom line. Threats and scare tactics will not work.

 

[twoweeled]

That will kill a lot of pension plans. That will never fly.

If handled the same as the past, it may fly. They may be putting 6% out as a weather balloon. Then it's proposed to us as 12% match, and we're told how lucky we are because the company wanted 6%! Lucky us!! And if we still don't go for it, it could come to push and shove time. We're going backwards in our contracts, and we will never get back what we've lost.

 

[Jkloc420]

Don't worry about the next contract and what is in it. It will get passed anyways even if everyone votes no.

 

[twoweeled]

Don't worry about the next contract and what is in it. It will get passed anyways even if everyone votes no.

I hear what your saying, but I sorta believe this is the way we're voting. Listening to co workers after votes and during proposals, just doesn't give me the feeling we're willing to strike. I'm assuming I know. I see more of us willing and rationalizing contract proposals. It's a different crew voting today, then 20 years ago. The union has convinced many of us, "we're lucky to have a job".
So we bend over and say; okay.

 

[oldupsman]

We had several old timers who did quite well during the IPO with their Thrift Plan money.

Trying not to brag, but, I was one of those old timers. But I wasn't alone. If you had just half a brain,
which I like to think I do, you took that thrift plan money and dumped it all into the IPO. And that thrift plan
money really added up over 20 years. There were years that it was paying 20 to 25%.

 

[twoweeled]

I don't know how terrible it would be?

A driver starting today would get $100 matched per week with $100 contributed himself.

That's $200 per week for about $10,400.00 invested per year.

On a 30 year career, that would be about $312,000.00.

Add investment returns to that, compounded interest, and you would be looking at well over $1 million dollars when you retire.

To get that type of return on your pension plan drawing $60k a year, you would have to live a minimum of 20 years past your retirement date, and still may never catch the continual investment return that would continue well into your retirement with a 401k plan.

A 401k plan is far superior, and safer.

But let's try and negotiate an 8% match instead of 6%.

It would still be far cheaper for UPS than the pension plan ponzi schemes still out there.

I may be totally wrong here, but help me out. I'm thinking 6% in your 401K ? I'm also of the belief, the max for 401K right now is about $18000 ? I'm thinking the company would match UP TO 6% of $18000, since that is the max we could contribute.
6% of $18,000 is about $1080 matched by the company? Where am I wrong here? I'm not very good at math.

 

[Brownslave688]

I don't know how terrible it would be?

A driver starting today would get $100 matched per week with $100 contributed himself.

That's $200 per week for about $10,400.00 invested per year.

On a 30 year career, that would be about $312,000.00.

Add investment returns to that, compounded interest, and you would be looking at well over $1 million dollars when you retire.

To get that type of return on your pension plan drawing $60k a year, you would have to live a minimum of 20 years past your retirement date, and still may never catch the continual investment return that would continue well into your retirement with a 401k plan.

A 401k plan is far superior, and safer.

But let's try and negotiate an 8% match instead of 6%.

It would still be far cheaper for UPS than the pension plan ponzi schemes still out there.

No match at all. Just have our $400+ a week go into our 401k


What I mean by crap is $100 a week being put in by the company is only 1/4 of what they now put in.

 

[Brownslave688]

I may be totally wrong here, but help me out. I'm thinking 6% in your 401K ? I'm also of the belief, the max for 401K right now is about $18000 ? I'm thinking the company would match UP TO 6% of $18000, since that is the max we could contribute.
6% of $18,000 is about $1080 matched by the company? Where am I wrong here? I'm not very good at math.

6% of your income.

 

[realbrown1]

No match at all. Just have our $400+ a week go into our 401k


What I mean by crap is $100 a week being put in by the company is only 1/4 of what they now put in.

I'd be cool with that?

Is that legal?

 

[Brownslave688]

I'd be cool with that?

Is that legal?

Yes. Companies don't have to match. My wife's company does a 6% match but they also do profit sharing. All of their profit sharing money goes into their 401k.

The company usually puts about 30k a year in on her behalf.

 

[twoweeled]

6% of your income.

"IF" they are matching 6% of your 401K contribution. Your contribution is capped at $18,000 for this year. It's not unlimited.