Yaba Daba Do
Donkey Punch Extraordinaire
Then where is my little green check??
Can I withdraw ROTH 401K somehow?
- Thread starter Smooth_Loader
- Start date
brown_trousers
Well-Known Member
thats what you say now, until you see what they offer you for a buyout.
Yaba Daba Do
Donkey Punch Extraordinaire
There are formulas for pension buyouts based on a combination of interest rates and life expectancy. I don't know exactly how it works but they aren't going to offer you something outrageous like $10k for 15 years or something like that. I have around 20-25 years before i retire so whatever they gave me, plus whatever they are currently contributing toward my pension, going into my 401k instead would grow to a lot more than i will ever get from a pension.
Yaba Daba Do
Donkey Punch Extraordinaire
and it would be able to be passed on to heirs
brown_trousers
Well-Known Member
Those formulas probably assume the pension is well funded. For a pension that is in the red, you would only recieve a fraction of that formulas value. The pension cant buy people out with money it doesnt have.
But... it would make sense to get something out of those bad pensions before they hit rock bottom
Yaba Daba Do
Donkey Punch Extraordinaire
And the billions of dollars the company has pumped into unsustainable pensions could be better spent in the future going towards our 401k's, healthcare, and wages.
brown_trousers
Well-Known Member
No doubt, it makes perfect sense. But there are a bunch of stubborn old teamsters that are under the delusion that their failed pensions will make a miraculous comeback. And they would oppose the idea.
The Teamsters just want this cushy pension board jobs that they can pass out to friends...
Yaba Daba Do
Donkey Punch Extraordinaire
I think the biggest opposition would be from the union itself. They would lose all that UPS money and wouldn't be able to pay the pensions of all the other companies that went out of business.
brown_trousers
Well-Known Member
Why do we even participate in pensions with other businesses? How do any of these other businesses help our pension dollars. It seems like they would be more of a liability than an asset. we would be better off having a UPS only pension fund
1989
Well-Known Member
It’s a teamster thing.
It was a safety net many years ago. If one or two went out of business you would still have most of your pension. How could anyone predict that a lot of these companies wouldn't stay in business.
brown_trousers
Well-Known Member
Did we really think that UPS might go out of business?
Did anyone think that the steel Mills, coal mines, Kmart, Leehman brothers and Remmington would go bankrupt?
Yaba Daba Do
Donkey Punch Extraordinaire
there is no upside for the largest company in a multi employer pension. We just get to foot the bill for any companies that go out of business, kind of like welfare. Yes, I guess theoretically UPS could go out of business down the road and in that case the other employers in the pension would be paying us but in reality this would never happen. There would have to be another company as big as UPS is now to take our place for everything to continue the way it is now and that wouldn't happen. The union sure likes it though because we can subsidize the less well off and this is why they will never let us out of it.
brown_trousers
Well-Known Member
We shouldnt be gambling our UPS retirement dollars with other businesses. Our retirement should not be welfare for other businesses.
crow27
Active Member
If you marry a Russian and run for president when you're 70 you've got my vote!
1989
Well-Known Member
We went on strike to stay in those plans
brown_trousers
Well-Known Member
And how did that work out for us?
1989
Well-Known Member
Worked out good for many
