The 2023 UAW/GM National Agreement contained many changes and has been called everything from “historic” to “weak”. While issues like COLA, Tiers, and wages generated most of the heat some important gains flew under the radar. One of these, pictured below from the highlighter, is the subject of this story from the Detroit Free Press – Detroit Three’s UAW Members Could Hear About Annuitites.
Pensions did not return, as most experts predicted, but the new contracts quietly opened the door for a unique way for autoworkers to opt to set aside a chunk of their 401(k) savings into a lower cost annuity for a more predictable stream of income in retirement. It’s a new type of idea that has been discussed in retirement circles but not well known among everyday savers.
Annuities don’t turn up the heat on social media, like big wage demands. I didn’t talk with a single UAW member on strike last fall who even mentioned annuities. Many, though, did express fear that they wouldn’t have enough money to retire.
At GM, the Income Solutions annuity platform will be available to UAW-represented workers no later than Feb. 1, according to Jack Crawley, a spokesperson for GM.
UAW-represented employees at GM would have the option to invest in an annuity through Income Solutions. “Through this benefit, employees will receive a 50% discount on fees associated with the annuity options,” Crawley said.
Just because a contractual benefit didn’t generate a lot of heat, doesn’t mean it’s not cool…
