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Automotive News & Views United Automobile Workers of America (UAW)
16738 messages, Last post on Dec 03, 2009 at 10:07 AM
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Replying to: imidazol97 (Jun 25, 2009 4:23 am) Actually I believe the GM Pension fund does take back some of the retirement when a retiree takes SS. The reason being, that GM paid half of the SS premium during the employment. It is a negotiated part of the retirement. The real problem was and is, that GM agreed to an open ended health care plan for the life of the retiree and spouse. When they signed the contract it may have cost GM $200 per month for the gold plated health care plan. Now it is probably more like $800 per month or even more. Our Teamster plan was barely copper plated and costing our company $1200 per month. Even at $1200 per month our plan is in financial difficulty because the cost of services are escalating.
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Replying to: michaell (Jun 24, 2009 9:29 am) It's something like that here in Maryland also. The problem with it, from a funding standpoint, is that it's based on the average of your highest 3 years salary. As you said, up to 80% of that highest average, which a pretty darn good deal no matter how you slice it. Way over what most workers in private industry can expect. Federal workers in the old system had it just as good. I'll repeat my story again about our friend who retired from the feds after 40 years. After a couple of years of COLA's, he's bringing home more now in retirement than he made while he was working. Courtesy of the US taxpayers.
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Replying to: gagrice (Jun 25, 2009 5:18 am) No doubt increasing healthcare costs are creating real problems. My wife's employer just changed the formula for healthcare in retirement and she missed by being two years to young. Oh well, at least we have another 25+ years to plan for it. |
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Replying to: lokki (Jun 24, 2009 11:21 am) The way they transitioned to the cash balance plan really hit older workers hard. In my case, at 65 I will be bringing home around $400/month less under the new plan than I would have under the old defined benefit plan. This is because there's an accrued interest that's part of the cash balance plan, and, for older workers (those over, say, age 55), there's just not enough time for the compounding effects of the interest to offset the loss from the defined benefit plan, had it continued. |
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Replying to: andre1969 (Jun 24, 2009 11:26 am) 
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Replying to: cooterbfd (Jun 24, 2009 2:37 pm) |
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Replying to: srs_49 (Jun 25, 2009 5:26 am) My Mom is in the federal gov't, and hit her 40 year mark last year. She had planned on retiring at the end of 2008, but they made it worth her while to stay on another year. She won't get social security, because she didn't pay into it as a gov't worker, and didn't get enough quarters in prior to going into the gov't. I forget now what she said she'd get in retirement. Something like 80% of her best 5 year average? Anyway, it's pretty sweet, IMO. However, she did pay into that retirement plan for 40 years, so I guess she's entitled to something. My grandmother's cousin was a GS13 in the gov't, and retired in 1980. I think her retirement is only around 30K or so per year. A GS13 starts at around $87K nowadays in the DC area, so somehow my grandmother's cousin fell through the cracks when it came to COLA adjustments! We used to have a lady working in our office who retired from the gov't when she turned 62, and then went back to work as a contractor. She had been a GS12, and was getting something like $60K in retirement. Something's not adding up here though. Maybe she had more years of service in than my grandmother's cousin? I have a friend who's a school teacher. I'll have to ask him what their retirement plan is. I know he pays into a retirement plan, but I think he also pays into social security.
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Replying to: fezo (Jun 24, 2009 11:37 am) |
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Replying to: andre1969 (Jun 25, 2009 6:11 am) Those are all very good plans, even considering some of them required employee contributions. Tthey are all much better than most plans from private industry. And, I have yet to hear of a govt retiree having his pension reduced because the government failed to set aside enough money for it. I will have over 45 years in with my company if I stay 'til I'm 65. Our retirement plan required a contribution in the early years, but it was dropped along with reducing the benefits some time ago. When I retire, I will get something like 25% of my final average 3-year salary. After 45 years. That's the reality of pensions in the private sector nowadays.
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Replying to: srs_49 (Jun 25, 2009 6:39 am) Ouch! that's pretty painful, but I guess nowadays, any pension at all is a blessing. And 25% is a lot better than that $349.21 per month I get to see in another 26 years. I hope you're saving in other ways, such as 401k, IRA, etc. Sadly, that lady I mentioned who retired from the gov't and worked with us, was always whining about money problems, despite that ~$60K pension, plus working 3 days per week at around $25 per hour. Yet she always found the money to go on these 3 week cruises here and there. She liked to whine at me for being cheap, but then would get defensive when I'd shoot back that at least I'm not still working in my 60's because I can't figure out how to budget on $60K per year. Yeah, she didn't like that too much. 
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