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

[AIRWOMAN]

Wrong,

I have a pension.

Actually two, one that I have earned for 17 years which was turned over to the PBGC.

And a 3% defined contribution plan.

Don't let the facts get in your way.

And we still have an option of a 401k with a 2% match.

The issue at hand is what can be/will done in the future with the merger.

HP 401K is currently a 50% match up to 6%.

But no current, in force pension plan, correct?

 

[700UW]

US has a 3% defined contribution plan.

And the 2% match with is a wierd formula, have to remember what it is exactly.

 

[PhxRanchHand]

US has a 3% defined contribution plan.

And the 2% match with is a wierd formula, have to remember what it is exactly.

ok, so your answer is that currently there is no pension under the current contract. that is what I was refering to about the rampers pension, is it under the contract, or was it given over to the PBGC???

 

[700UW]

The ramp's is part of the IAMNPF a multi-employer plan, not a US Airways controlled pension plan and it is in their CBA.

Read this again, there is a 3% Defined Contribution Plan in the contract.

And the defined benefit plan was turned over to the PBGC, it is still making payments at the PBGC benefit levels.

 

[PhxRanchHand]

The ramp's is part of the IAMNPF a multi-employer plan, not a US Airways controlled pension plan and it is in their CBA.

Read this again, there is a 3% Defined Contribution Plan in the contract.

And the defined benefit plan was turned over to the PBGC, it is still making payments at the PBGC benefit levels.

ok then, exactly what does the 3% plan say under the contract ( in other words terms of said contribution)

 

[700UW]

The company puts an equivalent of 3% of your weekly earnings go into a defined contribution account.

 

[AIRWOMAN]

The ramp's is part of the IAMNPF a multi-employer plan, not a US Airways controlled pension plan and it is in their CBA.

Read this again, there is a 3% Defined Contribution Plan in the contract.

And the defined benefit plan was turned over to the PBGC, it is still making payments at the PBGC benefit levels.

3% of what?

The PBGC benefit level is how much less than if it hadn't been turned over?

Another plus for the 401K is the ability to make a hardship withdrawl and take a loan against your vested balance. And the great thing about the loan is that you pay interest but it's all paid back to yourself!! I haven't seen anything along those lines with the pension but please, inform me if I'm incorrect.

 

[700UW]

You will still have a 401k and the ability to borrow from yourself.

The PBGC sets the limits, it depends on your age and length the plan.

It is all on their web page, for instance some retirees have had their payments reduced some have not each case is an individual basis.

 

[AIRWOMAN]

You will still have a 401k and the ability to borrow from yourself.

The PBGC sets the limits, it depends on your age and length the plan.

It is all on their web page, for instance some retirees have had their payments reduced some have not each case is an individual basis.

From what I've understood, it would be a 401K or a pension, not both, that would be offered by the company. The company match is pretty good and it has NOT been reduced all these years.

 

[700UW]

Funny the the ramp has the IAMNPF and a 401k.

Mechanic and Related before our pension was terminated had a defined benefit plan and a 401k.

Now we have a Defined Contribution Plan and a 401k.

The 401k is in our collective bargaining agreements along with the respective pension plan.

Don't let the facts get in your way.

 

[AIRWOMAN]

Funny the the ramp has the IAMNPF and a 401k.

Mechanic and Related before our pension was terminated had a defined benefit plan and a 401k.

Now we have a Defined Contribution Plan and a 401k.

The 401k is in our collective bargaining agreements along with the respective pension plan.

Don't let the facts get in your way.

Funny?? And geez, does the entire world know that, except me?? Does it add up to what a 401K can produce or better yet, exceed it?

How about providing factual details on the Defined Contribution Plan and 401K as it is, right now, under the contract.

 

[700UW]

The IAMNPF has allows been sound and paid great benefits, the 401k is subject to the market fluctuations.

Ask many of the US employees who lost thounsands in their 401k's from US Stock.

I have read above posts.

 

[allunionsdeceive]

The IAMNPF has allows been sound and paid great benefits, the 401k is subject to the market fluctuations.

Ask many of the US employees who lost thounsands in their 401k's from US Stock.

I have read above posts.

Anyone that put there 401k in Company stock is not of sound mind.

 

[AIRWOMAN]

Defined Benefit and Contribution Pension Plans
From Jenny McKinney & Patrick McKinney,

Differences along with advantages and disadvantages of both
A defined contribution plan provides an individual account for each participant. The benefits are based on the amount contributed and are also affected by income, expenses, gains and loses. Some examples of defined contribution plans include 401(K) plans, 403(B) plans, employee stock ownership plans and profit sharing plans.

A defined benefit plan promises the participant a specific monthly benefit at retirement and may state this as an exact dollar amount. Monthly benefits could also be calculated through a formula that considers a participants salary and service. A participant is generally not required to make contributions in a private sector fund but most public sector funds require employee contributions. Unlike defined contribution plans, the participant is not required to make investment decisions.

Advantages of Defined Benefit Plans

Guaranteed retirement income security for workers

No investment risk to participants

Cost of living adjustments

Not dependant on the participant’s ability to save

Tax deferred retirement savings medium

Disadvantages of Defined Benefit Plans

Difficult to understand by participant

Not beneficial to employees who leave before retirement

Advantages of Defined Contribution Plans

Tax deferred retirement savings medium

Participants have a certain degree of how much they choose to save

Can be funded through payroll deductions

Lump sum distributions may be eligible for special 10 year averaging

Participants can benefit from good investment results

Easily understood by participants

Disadvantages of Defined Contribution Plans

Difficult to build a fund for those who enter late in life

Participants bear investment risk



Taken from Investopedia.com

Defined-Contribution Plan
A retirement plan wherein a certain amount or percentage of money is set aside each year for the benefit of the employee. There are restrictions as to when and how you can withdraw these funds without penalties.


There is no way to know how much the plan will ultimately give the employee upon retiring. The amount contributed is fixed, but the benefit is not.

 

[Tim Nelson]

The IAMNPF has allows been sound and paid great benefits, the 401k is subject to the market fluctuations.

Ask many of the US employees who lost thounsands in their 401k's from US Stock.

I have read above posts.

If one is voting soleby based on retirment then the person has no 'good' option other than to vote against the IAM and its pension. Although the ramp contract has a 401k it has no company contribution in it...but if the IAM is finally decertified for another then the company contributions would instead go into a 401k.

Pensions like the IAM's is a creature of the last century. People like choice and they like having access to their money for college, mortgage, health and don't want to wait till they are 100 years old to get a benefit. They want portability and don't want a restriction of having to have another IAM job. The laws have made 401k's very appealing, however the IAM pension plan's portability is a joke and had the movement of a prehistoric dinosaur.On top of all that, it CAN BE SUSPENDED, it's in the documents!

Vote for 401k and don't restrict yourself to something you won't see or have access to until you have alzeimers. You can even cash out the 401k.

regards,