Pensions and retirement income are a high priority in the next contract. A defined benefit pension is at the top of many members list of demands. That said, did you know our 401k is among the best in the nation? Check this out…
In terms of the specific question about the 10% contribution to the 401(k), data from Vanguard suggest that the contribution is higher than that provided by most other employers.
First, it is unusual for a company to provide solely a nonmatching contribution — just 2% of plan participants received one in 2022 (see Table 1).
Second, for those employers offering only a nonmatching contribution, only 5% of participants were in plans that offered a contribution of 9% or more.
But overall, the 10% nonmatching contribution is definitely at the high end of plan providers.
UAW members have one of the best defined contribution/401k plans in the country. Can we create a reliable income stream for retirement?
The new annuity benefit in the national agreement addresses this disadvantage by providing a one percent commission instead of the industry standard two percent. It’s true that the defined benefit pension enjoyed by traditional members was not obtained in the current contract. That said, if you are interested in a guaranteed monthly income check in retirement take a minute and find out more about this annuity benefit. A good place to start is by clicking here.
We all hope for and demand a defined benefit pension but members already have the tools to build a solid retirement income. Take care of number one.
