Teamster national 401(k) tax deferred savings plan

Discussion in 'UPS Union Issues' started by anonymouse, May 12, 2012.

  1. anonymouse

    anonymouse New Member

    I've been working for UPS for about 3 months and just got the 401(K) plan in the mail. I don't know how long I plan on working for UPS but I don't plan on quitting for no reason, so I was wondering should i sign up anyway? My position is preloader I make around $200 a week.
  2. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Yes, you should enroll; however, due to your limited income, you will not be able to set that much aside (at first). What I usually do is increase my contribution rate whenever we get one of our contractual raises. You could start small (less than 5%) and increase it as you go. Your 401k could be a healthy supplement to your pension when that time comes.
  3. over9five

    over9five Moderator Staff Member

    Agree with above. I started with just 2%.
  4. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    Yes at least do 2% if you do tax deferred you would lose this money to taxes anyway. Also remember there is a ROTH option
  5. Monkey Butt

    Monkey Butt Obscured by Mirrors Staff Member

    It is a huge assumption that there will be a pension for a new hire at age 20.
    Pensions are dinosaurs of the past and I am very grateful for mine.
  6. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Excellent point.
  7. over9five

    over9five Moderator Staff Member

    Now's the time to go if you can. I fear it will be a very short time till pension payments will simply not be met.
  8. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Pensions are guaranteed but the guaranteed amount puts you below the poverty line.
  9. over9five

    over9five Moderator Staff Member

    Pensions are guaranteed, but they can adjust the amount and the age you can get them (and many other things) at any time.
  10. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    What I meant was pensions are guaranteed by the PBGC but the amount that you would get annually is less than $20K.
  11. regard less how long you plan on working there i would start putting some money away for later! My suggestion would be maybe though with someone else. Fidelity, Merrill, etc etc. Prudential is good unless you come across a hard time and need some money. There very strict on giving it to you. Yes they are protecting your portfolio which is good but sometimes tough situations arrive and you wont be able to get it from them like you would someone else. The good part though is they treat it like a loan so you dont get taxed and penalized and take a weekly adjustment to pay back (up to 5 yrs) this way you wont get screwed at the end of the yr during tax time.
  12. Inthegame

    Inthegame Well-Known Member

    So is it only a little assumption that our poster is age 20?

    The PPA clarified, but did not replace the guidelines of ERISA. An earned benefit cannot be reduced unless your plan falls below 65% funded and requires a rehabilitation plan. Contributing sponsors (UPS) could be required to increase their contribution if they have unfunded liabilities. They cannot adjust "many other things at any time" outside these parameters.
  13. satellitedriver

    satellitedriver Moderator Staff Member

    Central States has been in "critical status" since 2008.
    Jan 1, the pension fund was only 58.9% funded.
    And many changes will occur if, or when, PBGC takes over.
    Roughly a 65% reduction in promised benefits.
  14. Inthegame

    Inthegame Well-Known Member

    My post was in response to this statement "Pensions are guaranteed, but they can adjust the amount and the age you can get them (and many other things) at any time."
    Lots of things can happen, but pensions are strictly regulated by law, not whim.
    From the limited info I saw from the poster, it appears they are not in the CS plan.
  15. elenthompson

    elenthompson New Member

    With all the bad news going around these days, people who have 401(k) policies have some good news.
  16. sortaisle

    sortaisle Livin the cardboard dream

    If UPS offered a matched 401k in lieu of our pension, I think I'd bite. But if they stop offering pension benefits there had better be a HEALTHY raise to cover it.
  17. over9five

    over9five Moderator Staff Member

    Yup, it's been a great ride. I'm thinking there's going to be a huge correction coming, tho. Time to move those funds to a safer place?
  18. oldupsman

    oldupsman Well-Known Member

    Absolutley. Saving is always a good thing.
    Got a question for you Upstate. I thought that number from the PBGC was a percentage of the pension you were receiving. Are you saying it's a set number
    no matter what your pension is?
  19. purplesky

    purplesky Active Member

    Just ride out the corrections. The markets will bounce back. Dont time the markets. I know several people who freaked in 2009 and moved their money to a safe place and missed this bull market.

    Just rebalance your recent stock gains to your conservative investments.

  20. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    The match would have to be awfully high (at least 10%) before I would even consider this.