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XPO | why not pension instead of 401k?

toejam

toejam

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Why not restart a pension plan instead of the 401k contribution?
One major of our major competitors has both and stock options which their drivers can sell at any time.
Why not put the 3,4, or 5 percent back in a pension fund instead of the 401k and have us take the risk of losing that money in the market? Heck in 20, or 30 years from now our country might not have a stock market and we will be going through the worst depression ever.
 
dock dude said:
Do you think there is no risk of losing money in a pension fund?
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There is less risk in theory because a percentage of a pension is guaranteed by the government. Companies that have went out of business have had employees with pensions covered by the federal pension insurance. Just not at the full amount.
 
a pension is a defined benefit plan, where as a 401k is a defined contribution plan. The risk is shifted from the company to the employee using a 401k.
 
CenturyClass said:
a pension is a defined benefit plan, where as a 401k is a defined contribution plan. The risk is shifted from the company to the employee using a 401k.
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If a company sets up a pension THERE ARE RULES AS FAR AS HOW MUCH MONEY HAS TO BE SET ASIDE FOR THAT PENSION. One of the main reasons the US postal service is having so much trouble is the money congress wants them to set aside for pension contributions in the future. UPS spent billions to withdraw there employees from a teamster pension plan. Several airlines have folded in the past and the government has covered a portion of the pension through the Pension Benefit Guaranty Corporation. The risk shifts and the amount of money the company has to set aside is drastically different.
 
icuicp said:
If a company sets up a pension THERE ARE RULES AS FAR AS HOW MUCH MONEY HAS TO BE SET ASIDE FOR THAT PENSION. One of the main reasons the US postal service is having so much trouble is the money congress wants them to set aside for pension contributions in the future. UPS spent billions to withdraw there employees from a teamster pension plan. Several airlines have folded in the past and the government has covered a portion of the pension through the Pension Benefit Guaranty Corporation. The risk shifts and the amount of money the company has to set aside is drastically different.
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He's the most right here..govt. made the employer responsible for keeping up the pension..company said no way..and now give us the said amount every qtr. The money is free and clear ours to invest where we want to invest (within the plan).

Our current pension is underfunded.. we get the statement every year..i wish they could just buy us out, and be done with it.
 
You invest the money how you see fit. You could get everything wiped out, so now who is taking all the risk?

A pension, you get a set amount regardless. Its only based on your years of service, or however they determine you are eligible for a pension


Stop acting like you know everything beer
 
CenturyClass said:
You invest the money how you see fit. You could get everything wiped out, so now who is taking all the risk?

A pension, you get a set amount regardless. Its only based on your years of service, or however they determine you are eligible for a pensionO





Stop acting like you know everything beer
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He asked a question. I answered it properly. You are injecting your personal opinion into your answer.
 
Didnt know stating facts is now opinions. I forgot you are all knowing. I apologize. I will take everything I know about finance and economics and flush it down the toilet
 
CenturyClass said:
Didnt know stating facts is now opinions. I forgot you are all knowing. I apologize. I will take everything I know about finance and economics and flush it down the toilet
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You gave your opinion on which is better.. your answer was biased..no big deal, i don't care really...
 
beerfd said:
He's the most right here..govt. made the employer responsible for keeping up the pension..company said no way..and now give us the said amount every qtr. The money is free and clear ours to invest where we want to invest (within the plan).

Our current pension is underfunded.. we get the statement every year..i wish they could just buy us out, and be done with it.
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The words "buy us out" are the best three words I've heard you say, keep it up....:coffee1:
 
beerfd said:
He's the most right here..govt. made the employer responsible for keeping up the pension..company said no way..and now give us the said amount every qtr. The money is free and clear ours to invest where we want to invest (within the plan).

Our current pension is underfunded.. we get the statement every year..i wish they could just buy us out, and be done with it.
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(within the plan) & that plan sucks all you can do is ask for low, medium or high risk.Now explain to me how that is having control of my retirement. I once called & asked them to sell all my stocks & invest it all into 1 stock, they said they could not do that, turns out that stock went from .74 cents a share to $27 a share, my retirement could have been alot better off if I had control of my 401K.
 
Oh & let us not forget that the reason we use T.rowe price (the same as cigna) is because 1 of our board members sits on their board too.
 
You do know this is a free country and you can state your opinion and you are free to start your own company and give them all the control you want. Just Sayin
 
icuicp said:
If a company sets up a pension THERE ARE RULES AS FAR AS HOW MUCH MONEY HAS TO BE SET ASIDE FOR THAT PENSION. One of the main reasons the US postal service is having so much trouble is the money congress wants them to set aside for pension contributions in the future. UPS spent billions to withdraw there employees from a teamster pension plan. Several airlines have folded in the past and the government has covered a portion of the pension through the Pension Benefit Guaranty Corporation. The risk shifts and the amount of money the company has to set aside is drastically different.
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Yes UPS bought their way out of the Central States pension fund,..

However, UPS and UPS Freight are still involved in a single employer pension fund for their employes, And I think the Union has some oversight of the fund to help protect the membership,.......
 
I would rather have the co. invest my money in a retirment fund than doing it myself. I figure if I had that much knowlege in the stock market and retirement funds I would not be driving a truck for a living!!!
 
Aggressor said:
(within the plan) & that plan sucks all you can do is ask for low, medium or high risk.Now explain to me how that is having control of my retirement. I once called & asked them to sell all my stocks & invest it all into 1 stock, they said they could not do that, turns out that stock went from .74 cents a share to $27 a share, my retirement could have been alot better off if I had control of my 401K.
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What your saying doesn't make sense.. the 401 is invested in different mutual funds..I've got a lot of mine in the money market..completely safe.

I'm not saying that a 401 is any better than a pension.. I just work with what I have.
 
Walleye said:
Yes UPS bought their way out of the Central States pension fund,..

However, UPS and UPS Freight are still involved in a single employer pension fund for their employes, And I think the Union has some oversight of the fund to help protect the membership,.......
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Yes, and UPS is a great company, with revenue of more than 50 billion dollars. I only wished Conway shared that kind of revenue.
 
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crasher said:
I would rather have the co. invest my money in a retirment fund than doing it myself. I figure if I had that much knowlege in the stock market and retirement funds I would not be driving a truck for a living!!!
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Well, the OP, was asking why not a pension rather then a 401K... The gov. starting making companies guarantee their pensions (just as if they had a contract), well they decided to go a different route. Now, I know what I've got to work with, and decided to stay. If Conway would've stayed with the pension, with their debt, because they're a relatively new company, would be struggling right now. Seriously. So, you do what you have to do with what you have to work with..it's a sign of the times..get used to it. Believe me, I would rather have a "defined" pension, but it's not like that anymore..you have to see to your retirement(at most companies).

BTW, I do have a set pension amount at retirement,,probably about 500/month, But I don't have to worry about my company being there tomorrow.. haha, I know ya'll hate me..but, I love ya'll...hahahahahahahahahahahahahahahaahaha
 
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