XPO | why not pension instead of 401k?

[ssadab]

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.

Most union pensions are underfunded. Central States is right around 50% funded.

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.

More money paid by the taxpayers to pay for the benifits of the few.

 

[Songremainsthesame]

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.

Well, SOME of us get that money free and clear. I get squat. And all I get from the company is we "hope" to have something figured out for you guys by 2nd quarter this year. Thanks so much. That makes me feel EVER so much better.

 

[Blue67]

There are many places to invest money and if I worked for a company that didn't offer investment bennies I would still be saving and investing every week. Pensions are dying off due to several things and people should educate themselves about investing because sitting around waiting on someone to do it for you will probably not get you the best outcome. Roth IRA is a good place to start if you meet the income guidelines and it's tax free after 5 years or upon retirement but could put you in a higher tax bracket as will withdrawals on other things. Playing the stock market is a gamble but there are things one can do to minimize risk. No guarantees with a pension except a few pennies on the dollar from the Feds if it goes to crapola.

 

[ldgarrit]

(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.

No one is forcing you to participate in the company's retirement plan. You want control over your own retirement, open an IRA with Scottrade and take charge over your investments.

 

[ldgarrit]

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.

Personally, I do not want a pension because I do not want to pool my money with other people and trust that I will get something back after a certain amount of time.

I don't want a pension because I cannot take the money with me to another job should I lose the one I have. The money in a 401K is much more fluid and can be rolled into other plans with other employers should the need arise.

In regards to your last sentence, where do you think pension fund managers park a large share of the money.......the stock market.

Pensions are like dinasaurs, they had their time, times changed, and now they're nearly extinct and soon will be completely gone.