IAM Pention Fund/Really How Good Is It? in $$.$$

[700UW]

The pension plan is a seperate entity.

 

[jetmechline]

If it was so good why was it not negotiated into the Mechanics & related contract at Usairways years ago?
Back around the same time they negotiated "Scope" :blink:

Take this information about the IAM plan into consideration before you decide.These are big disadvantages in my opinion.

If you return to work after you have retired and while you are receiving a pension from the National Pension Plan, your pension may be suspended, depending upon your age and the type of work you are doing.
If you have reached normal retirement age, your pension benefits will be suspended for any month in which:

You work 40 or more hours in any industry and geographical area which was covered by the Plan when you retired, and

Your employment is in any trade or craft in which you worked at any time under the Plan after your contribution date, which is generally the date on which a contributing employer first became obligated to make contributions to the Plan (or a prior plan) on your behalf.

If you have not reached normal retirement age, you cannot receive pension benefits and work for a contributing employer or for any other employer – including self -employment - in the same or related business or industry from which you retired, regardless of the number of hours worked or the geographical area in which you worked. Further, you may not work in any employment that would be disqualifying employment at normal retirement age.

Your pension benefits will not be suspended after you have reached the date at which benefits must be paid automatically – generally, the April 1 of the year following the year in which you are 70 ½ years old. (See When Are Paid Automatically)

If you are thinking about accepting any employment after you retire, please contact the Fund office to get a ruling on that employment. You are required to report all employment to the Fund office within 30 days of the start of such employment.

The Trustees may require you to periodically provide information about your employment status.

Disability pensioners are required to report any employment to the Fund office within 15 days of returning to work. Failure to make a timely report of employment may result in disqualification of benefits for six months.

If the Trustees find, from any source, that you have worked in employment as just described and you have not notified the Fund, the Trustees will presume that you are working 40 hours a month in disqualifying employment and will suspend your pension for that month and each subsequent month until you give written notice that you are no longer working or establish that the employment is not disqualifying employment.

If You Disagree With the Decisions of the Trustees

If your benefits are suspended, or if you receive a decision about employment that you question, you have the right to appeal. You must file a written request with the Trustees within 180 days after a notice is mailed to you. The Trustees will consider your appeal and they will respond to you in writing. Their decision will include their specific basis for their decision and specific reference to Plan provisions on which the decision is based. The decision of the Trustees will be final and binding on all concerned.

What Else You Should Know About Working After Retirement

If you intend to stop working and start collecting your pension again, you need to notify the Fund office in writing that you have left employment.

If you were working for a contributing employer, you may have earned additional future service credit. If so, your retirement benefit will be higher.

If the first time you retired was before your normal retirement age, any benefits you earn after you return to work will be payable in any benefit form you select when you retire again. In addition, you may elect to receive such benefits in a single payment if the actuarial present value of the subsequent benefits is $7,500 or less as of the new pension effective date.

If the first time you retired was after your normal retirement age, any benefits you earn after you return to work will be paid in the same form as your benefits were being paid before the suspension.

Your payments can resume no later than the first of the third month after the month in which you left disqualifying employment, and after you have notified the Fund office that you have done so. The initial payment will include any amount withheld during the period after your disqualifying employment has ended and before your pension benefits resume.


However, if you received pension benefits for months in which your check should have been suspended, the Trustees may deduct that amount from your pension when it starts again. No more than 25% of each monthly pension payment will be deducted, except for the first check, in which up to three months of benefits may be withheld.


For employees of groups joining the National Pension Plan on or after April 1, 2003, future service benefit values will be calculated at 60% of current benefit values

Current participants are not affected

 

[markkus757]

Pensions are failing all over the country and you want to put more preople in this situation? The biggest pension plan in the country(Social Security) is going belly up. As far as which costs more, you can structure the 401(k) several different ways to make it either cost effective for the employee or for the employer. The big difference is who makes the decisions on how the money is invested. This is where pension plans are usually more expensive. You have to pay someone to actively manage the money. Most 401(k)s just pay for administrative costs, not management fees. There is a big technical difference between the two.

 

[RedOne]

Someone sent me a PM and asked me to respond to the topic, as a retired US "east' employee. I retired as an F/S agent. I am over 60, not yet 65 yrs old.
I had:
1. Piedmont Pension plan, which was frozen by US and 401k plan started. This plan was turned over to PBGC and I now receive a monthly check from PBGC, luckly in the same amount that it was going to be thru the original Piedmont plan (which indicates that it is not a high amount, as no penalties were applied by the PBGC)
2. US basically froze my 401k plan. That money (the amount I had contributed and the amount US matched), so I have been told, is not available to US as the plan is managed by private company. Not having a 401k plan saves US money by not matching or having to administer the plan(the real question is can you believe what you are told)
3. I became a part of the IAM plan and was in it 2 yrs before retiring. I receive a check from them each month for approx $120. (I think the $ amount in a previous post is about correct for both full time and part time.... you can do the math for yourself)
.
I was asked which I would perfer. My choice would be 401k, because the employee decides where to invest his/her money...especially if there is any company match. (you can make $ or lose $....monitor quarterly reports you receive and change to something else if your stock/etc is habitually losing $). BUT for a 401k to produce any $ at all....THE EMPLOYEE MUST CONTRIBUTE TO IT. If you don't, you have no retirement. At low wages, I fear that people have no extra cash they think they can put aside for the future, as it takes all you make to get ends to met now. If memory serves me corr, participation in IAM plan is not optional...nor do you have a choice how the money is invested. However; at least with it not being an optional contribution, employees are forced to set aside some money that hopefully will be there for the employee at retirement. I have no idea what happens if IAM is booted out and you are still an active employee, nor do I know what happens if the union itself should cease to exist.

 

[Kev3188]

Is this for the Ramp?

Yes.

Both the ramp and Customer service group(s).

The stock clerks, reservations, sim techs, plant protection, and some other clerical departments are also under these CBA's, but I'm not 100% sure of what their current multipliers are (I think they're the same, but I'm not positive).

 

[AIRWOMAN]

I did not say that.

Your 401K is yours and no one elses and by law cant be put into a pension plan.

I said the 401K MATCHING Funds.

And the US/East have a base pension each week.

That would be put into the IAMNPF for your multiplier.

No where did I say your 401K would be taken from you.

Don't put words into my posts.

Please clarify this. "I said the 401K MATCHING Funds."
I guess I'll just ask.......1. are you implying that future matching funds will be put into the IAM pension?? 2. Or are you implying that already contributed matching funds will put into the IAM pension??

If it's 1., too wide open and negotiable for me. It is set right now, that the company will match 50% up to 6%. That amount could be lessened under negotiations. And since the IAM contract has eliminated the 401K plan and doesn't currently contain the IAM pension either, stick with the 401K as it is. Be a SMART investor in your own future instead of leaving it to someone else.
And if it's 2., that's crap........unless you're NOT vested.

 

[Jimmy Neutron]

Please clarify this. "I said the 401K MATCHING Funds."
I guess I'll just ask.......1. are you implying that future matching funds will be put into the IAM pension?? 2. Or are you implying that already contributed matching funds will put into the IAM pension??

If it's 1., too wide open and negotiable for me. It is set right now, that the company will match 50% up to 6%. That amount could be lessened under negotiations. And since the IAM contract has eliminated the 401K plan and doesn't currently contain the IAM pension either, stick with the 401K as it is. Be a SMART investor in your own future instead of leaving it to someone else.
And if it's 2., that's crap........unless you're NOT vested.

I gave you some info on this last night.

Whatever you have in your 401k cannot be touched by anyone but you, period. That money is yours.

If you end up with the IAM, the IAM pension will be started from the day you are initiated into the IAM.

They are two seperate entities. Most likely, there will be some sort of transition agreement with the company and the IAM and at that time the company will no longer contribute money to your 401k and will instead contribute the money into the IAM pension.

But whatever is in your 401k is yours and you are the only one who can touch it.

You can still contribute to your 401k yourself though.

 

[AIRWOMAN]

I gave you some info on this last night.

Whatever you have in your 401k cannot be touched by anyone but you, period. That money is yours.

If you end up with the IAM, the IAM pension will be started from the day you are initiated into the IAM.

They are two seperate entities. Most likely, there will be some sort of transition agreement with the company and the IAM and at that time the company will no longer contribute money to your 401k and will instead contribute the money into the IAM pension.

But whatever is in your 401k is yours and you are the only one who can touch it.

You can still contribute to your 401k yourself though.

Indeed you did........must've been half asleep. Thanks again. But still, I would rather keep my company matched 401K. The word pension scares me!

 

[Jimmy Neutron]

Indeed you did........must've been half asleep. Thanks again. But still, I would rather keep my company matched 401K. The word pension scares me!

I can fully understand that, I have the frozen pension with US that was turned over to the Govt., that does suck, but this pension is unlike the ones that companies offer and it is fully funded.

 

[AIRWOMAN]

I can fully understand that, I have the frozen pension with US that was turned over to the Govt., that does suck, but this pension is unlike the ones that companies offer and it is fully funded.

I understand your position also. But the current contract (IAM M&R) doesn't have either right now, correct? Guess if and when it comes down to negotiations, we'll wind up with whatever costs less. 🙁

 

[INSP17]

I see it this way:The IAM pension plan is about as good as all the other great plans out there right now you can join starting with...ENRON, UNITED, NORTHWEST,and so on.
Besides if the IAM was actually to win this that would be the first thing they give back to the company the next time Doug needs money and wants to give the upper ranks a pay raise

 

[700UW]

Once again, the pension is a multi-employer plan, it is not controlled by the IAM, it is a seperate entity, it has a fund director and assistant.

The board of trustees is split equally between the IAM and the companies that pay into it.

So if one company fails the contributions are still made by other employers to keep the pension funded.

And right now the plan is so overfunded they are going to have to increase benefits.

 

[AIRWOMAN]

Once again, the pension is a multi-employer plan, it is not controlled by the IAM, it is a seperate entity, it has a fund director and assistant.

The board of trustees is split equally between the IAM and the companies that pay into it.

So if one company fails the contributions are still made by other employers to keep the pension funded.

And right now the plan is so overfunded they are going to have to increase benefits.

Does the current contract have the pension?? Or is this another negotiable item?? I believe that DP said it was.

 

[700UW]

Fleet Service has it.

M&R do not, there have been initial talks between the IAM, the Company and the IAMNPF to get the M&R into the plan.

 

[AIRWOMAN]

Fleet Service has it.

M&R do not, there have been initial talks between the IAM, the Company and the IAMNPF to get the M&R into the plan.

Guess that'll have to negotiated..........depending on the representing union. Kind of like the contract talks..........none taking place until representation has been determined.

Curious, how did FS keep it but M&R lose it? Or did M&R not have it before.