ABF | 2023 Contract Proposals

The competition also pays benefits, I'm aware it likely isn't as s much....but insurance (their portion) and a 401k match isn't cheap.....many people on here want to pretend they don't pay anything...
They do...A 3% match on my 401k and a small portable pension.
13 years in and its worth about $30,000
Ill agree that they do add some things , but they're not 13 or 14 dollars worth an hour.
I don't have our insurance but I'm told its not to great.
 
They do...A 3% match on my 401k and a small portable pension.
13 years in and its worth about $30,000
Ill agree that they do add some things , but they're not 13 or 14 dollars worth an hour.
I don't have our insurance but I'm told its not to great
30,000 plus whatever you earned in compound interest on that free money.....plus a small pension...I'd be willing to bet the insurance is a grand a month, much more for someone with a family....the only thing I think you get ripped off on is if you don't carry insurance, you should get that money since it is part of your compensation...
 
They do...A 3% match on my 401k and a small portable pension.
13 years in and its worth about $30,000
Ill agree that they do add some things , but they're not 13 or 14 dollars worth an hour.
I don't have our insurance but I'm told its not to great.
I'm assuming you're talking about fedex freight. I don't know much about them, but I'm assuming they're much like od. At OD you can get 30k matched in 401k in 2 years when you add the weekly and discretionary match. Guys always laugh when I say I'd take my 401k over a pension any day. Fact of the matter is I'm fully vested and will be a multi millionaire well before retirement.
 
I'm assuming you're talking about fedex freight. I don't know much about them, but I'm assuming they're much like od. At OD you can get 30k matched in 401k in 2 years when you add the weekly and discretionary match. Guys always laugh when I say I'd take my 401k over a pension any day. Fact of the matter is I'm fully vested and will be a multi millionaire well before retirement.
I would never "laugh" about you taking your 401k over a pension....but I have a question....why not do both?
 
I'm assuming you're talking about fedex freight. I don't know much about them, but I'm assuming they're much like od. At OD you can get 30k matched in 401k in 2 years when you add the weekly and discretionary match. Guys always laugh when I say I'd take my 401k over a pension any day. Fact of the matter is I'm fully vested and will be a multi millionaire well before retirement.
They put almost $44,000 in two years in my pension no match. Also have a 401k with zero match….
 
They put almost $44,000 in two years in my pension no match. Also have a 401k with zero match….
44k in a pension doesn't even come close to what you can do with a 401k. There's far too much federal regulation. Long term your return will be much higher in the 401k. I keep hearing retired guys on pensions talking about getting 3500 a month which isn't much. Or guys talking about getting 5500 in the future. 5500 might sound decent now, but it won't be in 10, 15, or 20 years.
With a 401k you can live off growth in retirement and leave your millions to you wife or kids. You're really limited if the bulk of your retirement is tied up in a pension.
I'm not saying that pensions are bad, just that by the numbers a 401k is better.
 
OH. H&W Benefits. .$474 a week
Pension Benefits.... $342 a week

For both $816 a week. Divide by a 40 hour work week. $20.40 a hour fringe benefit value

$26.84 plus $20.40 Equals $47.24 a hour. Plus the rest of the hiren package we get.

This isnt to shabby. Would we like to be making more on the hour. Yes thats what next contract is for. And we are going to get it.
Total compensation, the amount it costs the employer to keep you on the payroll is more like $70 an hour. Paid for time that you don't work like holidays for example, $26.84 an hour for 40 hours. A holiday week with only 32 hours worked costs the company $33.55, $6.71 an hour per holiday added to your hourly wage. 40 hour vacation pay adds 53 cents per hour for each week of vacation. 5 paid sick days add another 53 cents each. The company Social Security match adds $1.66 an hour. All that totals $69.87 an hour for an employee with only one week of vacation in week with a holiday or sick day. The company must also pay unemployment insurance premiums based on total payroll and fund worker compensation benefits.
It costs the company $3000.00+ a week to employ a 40 hour dock worker.
 
44k in a pension doesn't even come close to what you can do with a 401k. There's far too much federal regulation. Long term your return will be much higher in the 401k. I keep hearing retired guys on pensions talking about getting 3500 a month which isn't much. Or guys talking about getting 5500 in the future. 5500 might sound decent now, but it won't be in 10, 15, or 20 years.
With a 401k you can live off growth in retirement and leave your millions to you wife or kids. You're really limited if the bulk of your retirement is tied up in a pension.
I'm not saying that pensions are bad, just that by the numbers a 401k is better.
My Teamster pension pays me $40,280.00 a year. I retired and got my first check in September 2004. Do the math. I have collected $704,900 in 17.5 years.
 
My Teamster pension pays me $40,280.00 a year. I retired and got my first check in September 2004. Do the math. I have collected $704,900 in 17.5 years.
Someone retiring with 5 million in a 401k can easily pull 150k a year and still have their balance grow. 🤷 150k x 18 is 2.7 Million.
 
Someone retiring with 5 million in a 401k can easily pull 150k a year and still have their balance grow. 🤷 150k x 18 is 2.7 Million.
OK, just doing some rough, crude calculations, contributing $22,500 (2023 max) into a 401K every year for 30 years getting an average return of 4% gives a future value of about $680,000. That's a far cry from the $5 million you claim. Please educate me as to how you come up with $5 million, I'm open to learning.
 
OK, just doing some rough, crude calculations, contributing $22,500 (2023 max) into a 401K every year for 30 years getting an average return of 4% gives a future value of about $680,000. That's a far cry from the $5 million you claim. Please educate me as to how you come up with $5 million, I'm open to learning.
Haha Do you know anything about compounding interest? You don't need 23k for 30 years to get 5M. The average is closer to 10% average return. Your math is way off.
 
I'm assuming you're talking about fedex freight. I don't know much about them, but I'm assuming they're much like od. At OD you can get 30k matched in 401k in 2 years when you add the weekly and discretionary match. Guys always laugh when I say I'd take my 401k over a pension any day. Fact of the matter is I'm fully vested and will be a multi millionaire well before retirement.
I don't know how old you are, or how much you contribute each week.
I think if your young your definitely on the right track!
Congratulations on being smart with your money and actually paying yourself first!
On the other hand markets do fluctuate....
Considering that I'd just a soon have that guaranteed pension with a 401k backup.
And you also have to consider having a family, an illness in that family, a layoff, an injury to you or any number of things that could side track your contributions.
With a pension its still there for you later...even if you can't make your own personal contribution that week or month.
 
Haha Do you know anything about compounding interest? You don't need 23k for 30 years to get 5M. The average is closer to 10% average return. Your math is way off.
Hey genius, do you know how to use a financial calculator? Do you know how to calculate time value of money? Do you know how to do an annuity calculation based on regular investments, interest rate, time, and then calculate future value of that annuity? Pull your somewhat ignorant head out of your butt and learn something then come back here with some intelligent comments.
 
Last edited:
Hey genius, do you know how to use a financial calculator? Do you know how to calculate time value of money? Do you know how to do an annuity calculation based on regular investments, interest rate, time, and then calculate future value of that annuity? Pull your somewhat ignorant head out of your butt and learn something then come back here with some intelligent comments.
My apologies, I redid the calculations a bit more accurately. If you deposited 432.69 weekly into your 401K (22,500 current yearly max divided by 52 weeks) after 30 years with a 4% yearly return, you would have approx. $1,305,200 after those 30 years. Based on your assumption of a 10% yearly return with the same contributions you would have approx. $4,289,455 after 30 years. Although a 10% return is the long time average gain of the Dow and S&P 500, it's usually wise to calculate gains using a lower rate to be conservative. So yes, under your assumptions of constant 10% yearly return you would get closer to but still not quite the $5 million you initially claimed. With the economy as it is now, assuming 10% per year return might be a very long shot over the next 30 years.
 
Last edited:
My apologies, I redid the calculations a bit more accurately. If you deposited 432.69 weekly into your 401K (22,500 current yearly max divided by 52 weeks) after 30 years with a 4% yearly return, you would have approx. $1,305,200 after those 30 years. Based on your assumption of a 10% yearly return with the same contributions you would have approx. $4,289,455 after 30 years. Although a 10% return is the long time average gain of the Dow and S&P 500, it's usually wise to calculate gains using a lower rate to be conservative. So yes, under your assumptions of constant 10% yearly return you would get closer to but still not quite the $5 million you initially claimed. With the economy as it is now, assuming 10% per year return might be a very long shot over the next 30 years.
My apologies. I wasn't clear enough in my response. I don't need 23k per year of my own contributions to get there if my employer adds 15k per year ( which doesn't count against the max contributions). BTW, I started my 401k well before I turned 30. I'll have more than 30 years of investing before I hit 59.5.
The economy doesn't scare me at all. I love these down times in the stock market. I'm able to buy more shares at a lower price. Downturns in the stock market /economy happen frequently, it's a great way to make money. History will show many lows and many highs. Only those who panic lose.
 
Top