I hope you enjoy my latest resolution. This one is not based on current contract language but instead on a change in federal law that can provide workers with new benefits, if the employer implements this option.
Let’s Lose Some of That Financial Stress
Darin Gilley, UAW Local 2250
Could you afford to miss work this week? A new transmission? Will you be able to retire? A recent study by the Employee Benefit Research Institute found that 47%, almost half of all employees, said not having an emergency fund was their leading cause of financial stress. That was followed by not being able to pay monthly bills. Not saving for retirement rounds out the top three reasons for financial stress. Help is on the way.
In 2022, the SECURE Act 2.0 became law with the signature of President Joe Biden. This legislation allows employers to create a special Roth 401k account that can be tapped for emergencies. Employees/Members may contribute up to $2,500 a year and take up to four tax and penalty-free withdrawals annually.
If there are no emergencies, the member enjoys all the benefits of a Roth 401k. These include not paying taxes on investment gains over the life of the account.
This legislation addresses 2 of the top 3 financial concerns of members. UAW members, through the resolution process, have a voice in our pay and benefits. The following resolution will be submitted for the next national agreement.
Proposed Resolution for The Next UAW/GM Negotiations
National Agreement
401k and Retirement Benefits with Emergency Fund
Whereas: Financial anxiety is a problem for both union members and General Motors. A recent study by the Employee Benefits Research Institute revealed the lack of an emergency fund is the most cited reason for employee financial stress. The third most-cited cause for stress was not being able to save for retirement. This anxiety affects the company through issues with productivity, absenteeism, turnover, and other issues that influence the bottom line.
Therefore: The company shall provide a special Roth 401k account that can be tapped for emergencies. This account will allow members to contribute up to $2,500 per year and take up to 4 tax and penalty-free withdrawals annually. This account will comply with related provisions of the 2022 SECURE Act 2.0.
If you have ideas for the next contract, make a note and store in a safe place. It will be resolution season before you know it. Be prepared to get what you need. Save money for an emergency and be ready to write that resolution that changes you and your co-workers lives for the better.
