Changing employment for higher pension.

[dokman]

If you change employment from a YRC company and go to where you are getting full contributions (Abf), and you work for 40 weeks and get a bump up in pension, then why can’t the employee make the additional payment for 40 weeks and stay where they are at?

 

[Steward of the Rock]

If you change employment from a YRC company and go to where you are getting full contributions (Abf), and you work for 40 weeks and get a bump up in pension, then why can’t the employee make the additional payment for 40 weeks and stay where they are at?

That is a good question. My guess would be because Yellow and ABF are now under separate contracts with different contribution requirements for each employer. I am not 100% positive, but I am pretty sure that ABF employees are only allowed to make up pension contributions on their own behalf if they are on an approved "Leave of Absence" per the contract. In other words, if an employee wanted to pay out of pocket for let's say 4 months of pension contributions to reach a certain payout goal to be able to retire 4 months sooner, I don't know of any contract language that would allow this. Not to mention the cost as it would be roughly $12,000 per year out of pocket for a Yellow employee to reach full contribution rate combined with the rate currently paid in on their behalf per their contract. Again, I am not 100% positive, but I am pretty sure that is why.

 

[dokman]

That is a good question. My guess would be because Yellow and ABF are now under separate contracts with different contribution requirements for each employer. I am not 100% positive, but I am pretty sure that ABF employees are only allowed to make up pension contributions on their own behalf if they are on an approved "Leave of Absence" per the contract. In other words, if an employee wanted to pay out of pocket for let's say 4 months of pension contributions to reach a certain payout goal to be able to retire 4 months sooner, I don't know of any contract language that would allow this. Not to mention the cost as it would be roughly $12,000 per year out of pocket for a Yellow employee to reach full contribution rate combined with the rate currently paid in on their behalf per their contract. Again, I am not 100% positive, but I am pretty sure that is why.

Never have heard a discussion about this, but curious. Seems 12 k could be recaptured in a several years with increased checks.

 

[Steward of the Rock]

Never have heard a discussion about this, but curious. Seems 12 k could be recaptured in a several years with increased checks.

I agree, but getting the different pension funds to allow "self contributions" other than an approved "Leave of Absense" is the only way that I can see this happening. The employers only contribute to the pension funds. It is the pension funds that set the rules.

 

[Steward of the Rock]

This is page 24 of my Central States Pension booklet. Other pension funds may have different rules.