Sunday, June 3, 2012

Myths About Union Pension Plans

You’ve seen the headlines saying that Teamster pensions are poorly funded. That just isn’t true. In fact, the Western conference of teamsters pension plan is a well-designed and responsibly funded pension plans. It provides Teamster members with a way to save for and earn a financially secure future. Let’s take a look at some of the myths surrounding the Teamster pension plans.

Myth # 1: Pensions are poorly funded.
While some pensions have gotten into trouble for not funding their benefits, this is not true of all pensions. The Western conference of teamsters pension plan is nearly 95% funded which make it among the top pension plans nationally.

 Myth # 2: All pensions are the same.
Plan designs among pensions vary. In fact, if we vote to form a union at Conway, we will decide if we want a pension plan and how to manage it. For example, if we want to keep the existing 401k plan we can keep it, instead of getting a pension plan.

Myth #3: All pension plans should be converted to 401(k)-like plans.
Opposition groups (i.e. wall street, corporate interests, the U.S. Chamber of Commerce ) have made it their mission to switch pension plans to a 401(k)-type plan under the premise that it is a cost savings measure. The Purpose of this is to put more stock into provide hands and have that serve as a cushion for them when times get rough. If they lose money, you lose money.

Myth #4: Pension plan would go to YRC members
YRC is under the Master Freight Agreement. Conway would not join that contract. The only companies bounded to Master Freight are YRC and ABF. Conway would have it’s own separate agreement and separately funded pension plan.

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