UPS retirement?

[L'il J.Seinfeld]

You support "outlawing" a pension ?

You bet I do. The baby boomers are going to bankrupt our country. People are living a lot longer. When the baby boomers get into their 70s and 80s there will not be a way to pay the pensions of the thousands more each year retiring. UPS has something like 400,000 employees right now. Think about all of them on the payroll after they retire for 40-50 years. Companies would have to devote a heck of a lot of resources just to fund the pay of retirees. That's why in about 10 years Congress will bascially pass a law saying that as of this point forward pensions are done. We're already seeing buyouts at GM and Ford and other enormous companies once thought to be immune from bankruptcy.

Is it wrong? I think so. People will have the rug pulled from underneath them. But it is an economic fact. If companies have to fund pensions they will not be able to compete with Asian and European companies whose employees benefit from more socialist governments where taxes are outrageously high. UPS is spending a lot of money lobbying for this already. With B plans that money os in your name and nobody can touch it except you or a beneficiary.

 

[ptarmigan]

Wow, you should have gone into a different field! Scary.

You really think, for ONE second, that even if your dreams of outlawing pensions became reality, that they would actually apply to the baby boomers? The group that will represent THE largest voting block? Do you smoke crack?

I thought only the UPS pilots get any A fund anyway?

 

[AC560]

I'd gladly trade my future A plan for an increase in my B plan (defined contribution plan.)

And everyone who is smart should agree with you. Moving from a defined planned to a self managed plan doesn't mean any less benefits. It instead probably means more benefit, the opportunity to take it with you from one place to another, the ability to borrow that money out when I get furloughed and then pay myself back interest, and the guarantee that money is going to be there when I retire.

A defined and a 401K both get their funds from the same place, your paycheck (this isn't the companies money it is your money). Why anyone in this day and age would want a defined plan (short of a federal worker) is beyond me.

 

[PreContact]

And everyone who is smart should agree with you. Moving from a defined planned to a self managed plan doesn't mean any less benefits. It instead probably means more benefit, the opportunity to take it with you from one place to another, the ability to borrow that money out when I get furloughed and then pay myself back interest, and the guarantee that money is going to be there when I retire.

A defined and a 401K both get their funds from the same place, your paycheck (this isn't the companies money it is your money). Why anyone in this day and age would want a defined plan (short of a federal worker) is beyond me.

Great, but what happens when the economy tanks?

 

[AC560]

Great, but what happens when the economy tanks?

How do you think a defined pension works? They invest that money just the same as a 401K and if their investments tank you suffer. The difference is you get to make the choice where the money gets invested, not the pension coordinator.

There are no guarantees in life short of death and taxes, but you get more guarantees with a self managed plan.

 

[pony251]

2 week schedules

Coffee Pot, The two week schedules are alive and well if you want to sit reserve for the Airbus. I am starting a 2 week stint tonight. They also had them when I was on the -72. Being away for two weeks isn't the greatest but I got all the days off that i wanted. Basically, the two weeks off is vacation time if you want to look at it that way. I got 5 JA calls in the past 8 days as well. More opportunity to make some cash if you want the abuse on your time off.

 

[Aviator7576]

Aplan

LilJ...

Do you know what the max contribution to a B fund is for 2007? That combined with the 401k maximum (which generally increases by $500 each year) cannot exceed $45k per year. With the limitations of the B plan and 401k, we need to have an A plan to capture more retirement earnings. Unless they get rid of the limits for B plans and allow unlimited 401k contributions, it would be foolish to "dump" the A plan in any way, shape, or form. The fact that our plan is tied in with the manager's plan is a great incentive for ups not to do away with it.

As far as congress deciding that defined benefit pensions are not in the best interest of the economy, realize that it's a democratic congress in there now...not just high paid pilots get A plans.

JMO

Pilot7576

 

[AC560]

Unless they get rid of the limits for B plans and allow unlimited 401k contributions, it would be foolish to "dump" the A plan in any way, shape, or form.

The limitations are limited by the government (they maybe limited by UPS as well). So if you have a defined pension you can only put so much in a 401K, if you have only a 401K you are still limited as to how much you can contribute each year.

 

[HoursHore]

The limitations are limited by the government (they maybe limited by UPS as well). So if you have a defined pension you can only put so much in a 401K, if you have only a 401K you are still limited as to how much you can contribute each year.

Excactly, those who want to get rid of A Plans and go to all B plans, How Big do you think the Govt will allow the B Plan, 401 K contribution get before they start taking their bite? Not big enough to make up for the loss of an A Plan.

Also, a A Plan pays for itself when well managed and the company isn't borrowing from it.

 

[L'il J.Seinfeld]

Wow, you should have gone into a different field! Scary.

You really think, for ONE second, that even if your dreams of outlawing pensions became reality, that they would actually apply to the baby boomers? The group that will represent THE largest voting block? Do you smoke crack?

I thought only the UPS pilots get any A fund anyway?

You are right the boomers will benefit and most likely keep their pensions. Those born after 1960 will not have defined benefit plans.