upschuck
Well-Known Member
Lowering again, nice
UPS doesn't match 401(k) contributions, but...
- Thread starter The Driver
- Start date
But we could use a few more choices.
beentheredonethat
Well-Known Member
So long as money is going into a pension I don't see UPS adding to a driver's compensation a company match for a 401K. The main issue facing UPS is the cost of a driver as compared to the cost of a driver for FDX. Besides FDX, if you look there's a lot of upstarts such as Uber that is getting into the package delivery business. Also, Amazon is doing some of their own deliveries and my guess is they will expand this further. Also there are dozens of smaller companies that deliver packages at a significantly reduced rate.
The Roth 401k is the way to go. The regular 401k is ok if you don't have deductions. The after tax 401k just sucks, you'll pay taxes on your earnings. When you do retire you'll want to move your Roth 401k to a regular Roth like Vanguard so you don't have Required Minimum Distributions at age 70.
National sales tax or value added tax is how they'll tax your Roth.
National sales tax or value added tax is how they'll tax your Roth.
UpstateNYUPSer(Ret)
Well-Known Member
It is more than a rumor.
Millenials prefer the flexibility of a 401k. Slowly phasing out the pension would save the company millions in administrative fees.
UPS would simply divert the funds that would have gone to the pension directly to the individual 401k; however, there would not be a match.
Mugarolla
Light 'em up!
Not a match per se, but they would contribute money to your 401K instead of to your pension.
oldngray
nowhere special
Most employees would love that money going to their 401k instead of to a failing pension but the union would never allow it.
UpstateNYUPSer(Ret)
Well-Known Member
We are talking about new employees only. Those already in the pension plan would remain there.
brownmonster
Man of Great Wisdom
The pensions rely on the flow of new money. Cut that off and their demise would be a lot quicker.
Brownslave688
You want a toe? I can get you a toe.
I'd be super jelly
Mugarolla
Light 'em up!
Not those in the UPS/IBT pension. It is 104% funded.
Granted, other Teamster plans do need new money coming in to pay current and future pensions.
UPS would probably just start with those new employees who would have a UPS/IBT pension. not any teamster pensions, and work from there.
brownmonster
Man of Great Wisdom
The company pays near 400 bucks a week into a pension plan. Switch to a 401k they'll pay 6% of your salary if you're lucky.
Mugarolla
Light 'em up!
I am not advocating switching to a 401K instead of a defined pension.
But if the company, union and employees agreed to it, UPS would be putting in more than 6%.
More than likely, it would be the same amount that they are contributing to the pension plan. It would then be up to the employee to make the investment options and take all the risk.
Good investment options and a good market would yield more than the defined pension upon retirement.
Bad investment options and a bad economy could be devastating.
That's why you save some on your own.
Limits on employer contributions are a lot higher than employee contributions, they can technically contribute up to $53,000.00 (minus what you contribute, 53k is the max total contribution) in 2015.
brownmonster
Man of Great Wisdom
Companies don't switch from pension to 401k to pay the same.
Brownslave688
You want a toe? I can get you a toe.
Why?
They don't have to match. It can be defined just as it is now. Just like pension contributions.
Brownslave688
You want a toe? I can get you a toe.
Sure they do as long as it's just defined contribution they know their costs. Where they are screwed is when they have to make up the difference if the pension doesn't have enough money.
Brownslave688
You want a toe? I can get you a toe.
Yeah my wife's company matches 10% plus puts all of their profit sharing money into their 401k. I think they put. 25-30k a year into her retirement.
Similar threads
