When UC enrolls new employees in a 401(k) it puts your retirement checks at risk.
Find out how below:
What is UC doing to our pension?
UC is threatening our pension by cutting our retirement benefits and offering new incoming employees the option to opt-out with a 401(k). When new workers opt-out of the pension and chose the 401(k) it puts our retirement security at risk. In 2013, UC attempted to do the same thing, but we fought back and won.
Why is UC doing this?
UC wants to save money. Paying into a pension is expensive and a 401(k) helps UC save money, but risks your retirement checks. With a pension, UC will provide a guaranteed amount based on your pay and years of service. With a 401(k), it’s not guaranteed what you’ll be paid at retirement.
How does this affect current employees?
Future pension checks are only guaranteed if new employees enroll in and contribute to your pension system. If UC enrolls new employees in a different retirement savings system—like a 401(k) plan—it will defund your pension and put your retirement at risk.
How does this affect future employees?
401(k) plans seem appealing because they’re transferable from one job to another. However, a 401(k)’s mobility comes at a price: less money when you retire. On average, employees with a 401(k) receive tens of thousands of dollars less than those with a pension.
— Calculator reflects AFSCME Members’ average retirement experience. AFSCME workers retire on average at Age 61 with 21 Years of Service (YOS)
— Replacement Income for 401(k) is derived from UC’s own modeling of the impact of a 401(k) done during its Retirement Options Retirement Taskforce proceedings. Actuaries adjusted the modeling to reflect AFSCME members’ average Years of Service (21) at retirement and employer contributions of 8 percent.