blue collar
Veteran
- Mar 17, 2008
- 1,241
- 901
With a 401k... It’s not your money until you actually contribute it to the plan. NO contribution = NO match… you lose! I have personally spoken with over half of the younger members (less than 10 years) in my department, and most do NOT contribute to the 401k… nor would they even if we had a company match. They do not care about 30 years from now… they want every penny NOW!
Now, with the IAMNPF you have no option but to participate, and the Company contribution is automatic. This fact will save most of these members from a life of poverty in a few decades when they retire!
The current monthly distribution numbers for a vested member that has participated since the inception of the IAMNPF is now equal to over $200,000.00 in a 401k! I have spoken to over half of the older members (with 20 years or more), and very few have over $70,000.00 in their 401k’s. Actually, a lot of them screwed up post 911 when the markets tanked, and they pulled their money out of equities. What this essentially did was to “lock them into” that loss with no chance of making it up, even with today’s soaring markets!
Face it… the average blue collar worker is not a good investor. Corporate America knows this, which is why they lobbied for 401k legislation in the 70’s to replace their pension obligations. It has saved them BILLIONS… and cost American workers BILLIONS!
Not necessarily- there are 401ks that contribute even if you don't. Us air doesn't have that, however, the $2/hr (not sure of fsc contribution) they are contributing to your pension is also YOUR money. That is money that would otherwise be in your paycheck. The whole
argument of pensions not costing you while 401ks do is moot. They both consist of YOUR money, one is diverted to a pension, while one is put into your own personal retirement account- that follows you anywhere your employment takes you. I do think a '3 legged' approach is the best, but don't fool yourself that the pension contributions aren't coming out of your pocket, just like 401k.