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  1. Default Does Anyone Have An Enhanced 401k Plan And If So How Does That Differ From Pension

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    Well Here We Are, Coming Down To The Final Hour Of The Current Contract Expiring And A New One Being Negotiated On And Possibly Being Bought To The Floor For A Vote.

    Some Of The Hot Topics In Regards To This Contract Is Medical Benefits, And Pensions. I Don't Think I Need To Bore You With Any Other Particulars Like Meals.

    As Of Right Now The Issues Is The Defined Benefit Pension Plan. And Having Members Pensions Frozen Before 50 Years Of Age And Those Under 50 Get An Enhanced 401k Plan And Those Over 50 Get To Stay On The Old Pension And It Still Accumulates.

    I Am Asking This To Find Out If Anyone Has The Enhanced 401k Plan Vs Traditional Pension Plan What Has Been Your Experience So Far.


    I Know The 401k Plan Was Never Intended To Be What Is A Know Defined Pension Benefit Plan, But Was To Supplement Your Retirement In The Future, So You Could Have Both Incomes To Rely On In Your Golden Years.


    I Know My Current 401k Plan Has Take About A $100,000 Dollar Hit, And Would Like To Know If Anyone's Enhanced Plan Did.

    If My Pension Is Frozen At Some Age In The 40's I Will Be Losing About Roughly $1900.00 A Month, Because The Frozen Rate Will Be About $1100.00 That Is A Savings To The Company About $1800 Dollars A Month.

    I Don't Think My Enhanced 401k Plan Will Be Able To Make That Difference Up After Age 59 1/2. Since By Then All My Deductions Will Be Gone.

    You See As Of Right Now, If You Have Deductions You Know The Standard Kids Etc You Fall Somewhere In The 15% To 21% Tax Bracket.

    If You Are Investing Lets Say 15% In 401k Out Of Your Own Money, And When You Are Ready To Start Taking Money Out Of Your 401k Plan, You Will Be Taxed At A Higher Rate Lets Say About 28% Since You Don't Have Any Deductions.

    So If Your Enhanced 401k Plan Isn't Making At Least On Avg 20% You Will Be Going Backwards Fast.

    So Think About It Real Hard The Math Isn't Real Hard

    A Defined Pension + 401k Plan =$$$$$$

    An Enhanced 401k Plan For Those Under 50 - Defined Pension = -$$$$$$$$$$$ That Is Negative Dollars For Those That Don't Understand The Symbol Not More Dollars.

  2. #2
    Join Date
    Nov 2002
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    God's Country!
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    What I have seen on the enhanced 401k's, is only like an additional 2% to 4% enhanced contribution. Some are graduated, like age 35 to 40, an addtional 2%, 40 to 50 4%, 50 to 60 6%, and your right, not near enough to make up what you and I are going to lose. I projected a $104,000 hit (loss) on total pension dollars, if ours is frozen. Like I posted before, there is no way an enhanced will make it up. I am already maxed in my 401k, so an enhancement simply puts more dollars in my pocket, which is eaten up by higher medical. I intend to open a 401k roth when we get hit and try and put 6% in it. The enhancement is simply more of a match. The scary part, many companies are now looking at ending matching 401k's in addition to freezing pensions. They see those dollars of pension and 401k's as enhancing the "Bottom Line', 401k's which were touted as the holy grail of retirements, and now almost worthless because of greed by banks and insurance companies. So whatt will we have? S.S.!

    It must really piss off the pencil necks that some working stiff might get to retire on something other than social security. I am actually thinking when I go out the door, I will live off the system like everyone I have been supporting while working. Obamer is spreading the wealth and corporate America is raking it in!

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