Management looking to change 401K Plan Administrators

[usjacket]

 

[barbeetantrums]

My advice to Fidelity if they are not selected as plan administrator:

Dump your investment in LCC. You are a top individual investor with 12,653,821 shares. You are a top mutual fund holder with 6,189,250 in the Fidelity Growth Company Fund, and numerous shares in the Fidelity Advisor Mid Cap Fund, Fidelity Contrafund and Fidelity Independence Fund. If you are jilted, dump LCC shares like a cheap suit. F--- 'em. They don't deserve you.

 

[PITbull]

You don't know if they are switching. They are doing their due dilligence and shopping around and seeing what they get. As for execs making millions, that is what the market allows, sorry that you aren't getting a million, but if you want to be an exec, then change your career track.

Better rates for the company???? You've got to be gesting, my friend. Enough with the cost savings off the employee backs, specifically with the only retirement, NON-employer contributing 401K plan benefit left for the workers!!!!!

 

[HPearlyretiree]

Better rates for the company???? You've got to be gesting, my friend. Enough with the cost savings off the employee backs, specifically with the only retirement, NON-employer contributing 401K plan benefit left for the workers!!!!!

I'm not jesting.

All companies do this, its standard practice to shop around and see what is offered every few years.

But, I guess you just want to rant, so there is no reasoning with you.

 

[PITbull]

PITbull,

Shopping for price, thus keeping a long term vendor honest is simply good business. I did it all the time. That's not bad, in fact it's good.

I haven't heard of companies shopping for plan administrators in such a large corporation as USAirways. Since my pension got dumped during BK as a major cost savings the company captured, retirement and long term investment strategy is a top priority and should be for all USAirways employees at this point.

What happens to the employee's investments and the specific funds they place their money in. What happens to their long-term goals with these specific funds they have chosen? You purchase shares every month and avererging ususally produces a fair rate of return over time.

What happens in the instance that a company hires a different Broker and plan admiistrator? If you are in the "know", how does one pull out of these funds and then transfer into other funds from a different broker house since you say this happens quite often with companies.

When I left U, I investigated rolling over into an IRA vs. keeping a 40lk Plan, vs. transfering USAirways 40lk to Citistreet. After much investigation and researching the other funds at Citistreet offered, I decided not to transfer my first 40lK, but rather keep it invested in the funds they were in as the performance was so much better than the Citistreet Funds' past performance in comparable large growth funds at Fidelity. Citistreet has nothing that compares to Fidelity Magallen or T.Rowe Price Blue Chip fund.

I've have a new 401K through my new employer, thus far, not impressed with Citistreet.

 

[john john]

I'm not jesting.

All companies do this, its standard practice to shop around and see what is offered every few years.

But, I guess you just want to rant, so there is no reasoning with you.

I think Hpearlyretiree has more to loose with LCC stock then his/her 401K

 

[HPearlyretiree]

I haven't heard of companies shopping for plan administrators in such a large corporation as USAirways. Since my pension got dumped during BK as a major cost savings the company captured, retirement and long term investment strategy is a top priority and should be for all USAirways employees at this point.

What happens to the employee's investments and the specific funds they place their money in. What happens to their long-term goals with these specific funds they have chosen? You purchase shares every month and avererging ususally produces a fair rate of return over time.

What happens in the instance that a company hires a different Broker and plan admiistrator? If you are in the "know", how does one pull out of these funds and then transfer into other funds from a different broker house since you say this happens quite often with companies.

When I left U, I investigated rolling over into an IRA vs. keeping a 40lk Plan, vs. transfering USAirways 40lk to Citistreet. After much investigation and researching the other funds at Citistreet offered, I decided not to transfer my first 40lK, but rather keep it invested in the funds they were in as the performance was so much better than the Citistreet Funds' past performance in comparable large growth funds at Fidelity. Citistreet has nothing that compares to Fidelity Magallen or T.Rowe Price Blue Chip fund.

I've have a new 401K through my new employer, thus far, not impressed with Citistreet.

Rolling a plan is easy, when I left my last job, I put all my 401(k) into a retirement plan that I chose. All it took was a phone call to transfer funds. And because it was a privately done thing, I had to pay some fees for the funds I bought. I have that fund, a Roth, and another 401(k) where I work now. When I leave this job, it will just be another phone call to transfer everything into my private fund.


Nothing has been changed yet, but if there is a better option out there that offers good service and value, and exploits the merged company's economies of scale, its worth looking at. There are thousands of funds out there to invest in, most plans let you pick and choose what you want, and a flexible plan will let you move the money around any time you want, rewarding the savvy investor who keeps on top of the funds.

 

[john john]

but if there is a better option out there that offers good service and value,

And this something this company knows all about or cares about and puts in the forefront of all things for the labor work force. TRUST FACTOR

 

[HPearlyretiree]

HPearlyretiree,

You're NOT factoring in the employees severe lack if trust. That's the part you aren't grasping.

Your observations and assessments are very accurate until you run them through the prism that is US Airways employee communication and Labor Relations.

That is where the issues and subsequent lack of trust lies.

Well, I'm not going to give in to the illogic and paranoia and change my message just so it fits into some pissed off prism.

One of the huge frustrations is that no matter what you say here, even the most harmless innocuous statement is going to be mistrusted and misunderstood.

Honestly, how does the company even stand a chance in that kind of situation?

 

[phlus2]

I haven't heard of companies shopping for plan administrators in such a large corporation as USAirways.

Then you don't read very much or talk to your friends very much - big Corps do it all the time - I work for a fortune 500 - and we did a few years ago.

 

[lostplanetairman]

As someone who is currently transferring my company's plan to Fidelity Investments, and as someone who has transferred plans in the past, I can say it is a lot of WORK! So, for all the WORK, it had better be a good reason for the transfer!

By the way, the total fee being charged to my company by Fidelity Investments is a whopping $35 per participant per year. That's it. That covers all the participant communication, administration, testing, tax preparation, internal audits, and more.

My only concern with them was not having the investment option of the Contrarian Fund due to the support of genocide in Darfour. So we chose other funds.

HR Diva

 

[PITbull]

Rolling a plan is easy, when I left my last job, I put all my 401(k) into a retirement plan that I chose. All it took was a phone call to transfer funds. And because it was a privately done thing, I had to pay some fees for the funds I bought. I have that fund, a Roth, and another 401(k) where I work now. When I leave this job, it will just be another phone call to transfer everything into my private fund.
Nothing has been changed yet, but if there is a better option out there that offers good service and value, and exploits the merged company's economies of scale, its worth looking at. There are thousands of funds out there to invest in, most plans let you pick and choose what you want, and a flexible plan will let you move the money around any time you want, rewarding the savvy investor who keeps on top of the funds.

A retirement "rollover" plan is not protected. What I mean is that 401K plans are protected from personal BK as well as lawsuits steming from a divorce or liability.

When you opted to take your 401K plan and "roll it over", you opened yourself to outside risks. The retirement plans are long-term plans and one must THINK of the possiblities that could effect one's retirement. 401K plans are protected as long as they remain in a 401K. Protecting your retirement is numeral UNO priority, specifically for those of us at USAirways that had are defined plans dumped in BK.

I'm not jesting.

All companies do this, its standard practice to shop around and see what is offered every few years.

But, I guess you just want to rant, so there is no reasoning with you.

Indeed, no reasoning with senior management either!

Then you don't read very much or talk to your friends very much - big Corps do it all the time - I work for a fortune 500 - and we did a few years ago.

Don't read much???? Take your head out of your a%%! Switching Plan Administrators for 35,000-40,000 employees is never a good thing for the employees. Specifically, USAirways who contributes not 1 cent of any contribution to the employees 401K retirement.

 

[hula-flyguy]

Pitbull,
thanks for the heads up. I dont know if other unions on the property are aware of whats going on, but I do know that the NON UNION folks affected by this HAVE NO CLUE!

I'll be passing the word....thanks

 

[PITbull]

Hula,

The West MEC is really great at keeping their members very well informed on just about every single issue that effects them, including frequent updates on negotiations etc...

Someone really needs to inform the East MECP on to start giving heads up to the membership specifically on ALL issues that effect them directly, such as this particular and critical issue.

 

[hula-flyguy]

I agree. All labor groups should be informed of what is going on not only with this, but all of the behind the scenes "negotiations" the company is engaging in on our behalf.

If it were not for this forum, what chance do you think noncontract employees would have of finding these things out?

If East MEC was involved in the call, the members should have been made aware. And if east was not involved, west should have given them the heads up.