Shifterknob
The Last Wordslinger
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I often hear the ol' million dollar mark being thrown around in regards to the company pension plan by management.
Funny thing is, though... no one ever has gotten anywhere close to that. I know quite a few guys who have worked here for more than a decade under the Oak Harbor plan who literally have under $150K in their pension account.
So let's say a guy works here for thirty years and only has $300K in his Oak Harbor pension plan (which is a very reaonable and real-world number, by the way). Then he starts pulling it out in regular intervals. What happens if he runs out of money before he runs out of life?
Will the Oak Harbor pension keep on paying him retirement money, even though his account is dry?
Because the Teamster pension will keep paying... and paying.. and paying. Won't do you much good to worry about leaving money to your kids if you run out of retirement funds long before your death. Not to mention, the Teamster pension has many, many survivor benefits that are lucrative.
And what about early retirement? Many of the guys who start here in their early twenties can retire under the union pension in their late forties or early fifties.
As to the contributory percentage, I will agree that the company has a generous percentage compared to many companies out there. But the point I want to get at is how you cut the rate from the 15% rate to 12% for the new hires. Those employees have no guarantee that you won't cut it again for new hires or even existing employees, do they? There is no contract, therefore there is no guarantee. If it happened once, it can happen again. At least the union side gets a fair chance to negotiate these issues on a relatively level playing field.
The real issue here is that we (and by this I mean everyone in the middle class in America) are being sold a bill of goods here. The 401(k)-type defined-contribution savings plan (which is essentially what the Oak Harbor pension plan is) was never intended to be a primary retirement savings vehicle. It was intended to be a supplementery retirment vehicle! That is what the designers intended it for! Only corporate America saw a chance to shift the entire monetary risk for retirements from themselves to their employees. Better deal for their share valuations, and that makes for happy shareholders, right? Only it's become an epidemeic, and there is going to be a whole generation of Americans who are going to retire realizing they got royally screwed.
And speaking of retirement... do the non-union guys have cheap retiree healthcare, like the union side does? I know the answer... do you?
Funny thing is, though... no one ever has gotten anywhere close to that. I know quite a few guys who have worked here for more than a decade under the Oak Harbor plan who literally have under $150K in their pension account.
So let's say a guy works here for thirty years and only has $300K in his Oak Harbor pension plan (which is a very reaonable and real-world number, by the way). Then he starts pulling it out in regular intervals. What happens if he runs out of money before he runs out of life?
Will the Oak Harbor pension keep on paying him retirement money, even though his account is dry?
Because the Teamster pension will keep paying... and paying.. and paying. Won't do you much good to worry about leaving money to your kids if you run out of retirement funds long before your death. Not to mention, the Teamster pension has many, many survivor benefits that are lucrative.
And what about early retirement? Many of the guys who start here in their early twenties can retire under the union pension in their late forties or early fifties.
As to the contributory percentage, I will agree that the company has a generous percentage compared to many companies out there. But the point I want to get at is how you cut the rate from the 15% rate to 12% for the new hires. Those employees have no guarantee that you won't cut it again for new hires or even existing employees, do they? There is no contract, therefore there is no guarantee. If it happened once, it can happen again. At least the union side gets a fair chance to negotiate these issues on a relatively level playing field.
The real issue here is that we (and by this I mean everyone in the middle class in America) are being sold a bill of goods here. The 401(k)-type defined-contribution savings plan (which is essentially what the Oak Harbor pension plan is) was never intended to be a primary retirement savings vehicle. It was intended to be a supplementery retirment vehicle! That is what the designers intended it for! Only corporate America saw a chance to shift the entire monetary risk for retirements from themselves to their employees. Better deal for their share valuations, and that makes for happy shareholders, right? Only it's become an epidemeic, and there is going to be a whole generation of Americans who are going to retire realizing they got royally screwed.
And speaking of retirement... do the non-union guys have cheap retiree healthcare, like the union side does? I know the answer... do you?