WeAAsles
Veteran
- Oct 20, 2007
- 23,539
- 5,263
Either way you look at it a 401k option is and still will be available from the company. The debate is whether the future preference at least on our side will be wanting to continue on with the 5.5% match on ALL earnings or divert that over to the IAMPF?roabilly said:WeAA...
I think what needs to be clarified here is that what is being debated in this forum is this-- The direction of the “Company’s Contribution” to the retirement component regarding a Members total compensation package. It’s not a matter of choosing if you have either/or (Pension or 401k) outlined in the CBA, as Fleet currently has BOTH!
It is beneficial for all Members to realize that the “3 legged stool” retirement analogy means this...
Leg 1: Pension
Leg 2: Supplemental Retirement (401k)
Leg 3” Social Security
If you remove any one of these “Legs” the stool falls over, dumping you on the floor! Now -- here is the reality...
To get the 401k base and match from the Company, you would need to direct the current Company contribution AWAY from the IAMNPF. This would mean having the pension Leg REMOVED!
On the other hand, the current circumstances at US Fleet allow for BOTH the pension, and 401k. The Company currently directs a portion of the compensation package toward the IAMNPF, making it the primary. In ADDITION... the 401k is still part of the equation, as Members are allowed to invest tax deferred as a supplement to the pension.
What has to be remembered from the TWU member vantage point is that we still do have a pension. Frozen yes but the company is making advance contributions to shore up the shortfalls and I find that to be comforting that at least one of my retirement checks will be secure in the future.
I do try to strive for honesty and IMO IAM members will more than likely not be given that opportunity of choice that I will expect from my negotiators if the IAMPF is afforded to us as an option? I already stated the questions I will be asking from the funds administrators when the time comes to make the best decision I can for myself and my future security.
Back to the topic though of individual retirement decisions. IAM fleet members just received a pretty decent pay raise. My suggestion to people although it may be difficult would be to place half of the raises you just received into your 401k or another personal retirement option and let that grow. We will be getting another 2.1% raise at the end of the month and I plan to put that also into my 401 bringing my contribution up to 22%.
The decisions you make today you will thank yourself tomorrow for.