Thursday, November 24, 2011
Happy Thanksgiving
Change FedEx To Win would like to wish all of our fellow FedEx employees and managers the best this Thanksgiving Day.
Wednesday, November 23, 2011
Tuesday, November 22, 2011
‘Father’ of the 401(k)’s Tough Love
Ted Benna, who three decades ago seized on an IRS loophole to transform American retirement savings, says he’s proud to be “father of the 401(k).” He also thinks he created a monster.The plans, which he intended to be as simple for employees as pensions, now offer too many investing options and too many opportunities to make mistakes, he says. “I would blow up the system and restart with something totally different,” he told SmartMoney.com.
“Blowing up the existing structures is the only way we can simplify them.”In 1978, when Congress passed the section of IRS code for which the plans are named, lawmakers aimed to limit the scope of cash-deferred plans being offered by some companies, but had no intent to revolutionize retirement. Benna, then the co-owner of the Johnson Companies, a benefits consultancy in suburban Philadelphia, was developing such a plan for a bank client when he happened on the idea section 401(k) could allow an entirely new option.The original 401(k) plans “could be explained to employees in just a minute,”
Benna, now 69 and semi-retired himself, says. “There were two options, a guaranteed fund and an equity fund,” he says. “With the guaranteed investment fund, we’d tell them this is what you will have when you retire. With the equity fund – which was usually something like the Fidelity Magellan fund – we’d say, you might have more, but you might have less. Most people would split their contributions 50-50 between the two.”As the plans were embraced by employers and financial institutions, Benna says 401(k)s were made so complex one needed to be an investing pro to make sense of them. “Now this monster is out of control. We went to three options, them to six, then to seven, then to 15 – it is far beyond what most participants were able to deal with,” Benna says. “And I am not convinced we have added value by getting more complicated.”
Better education was supposed to be the solution to intricacies of the plans, Benna says. If employees understood the options, the power of compound interest and dollar-cost averaging, and the advantages of making pre-tax contributions, it was believed they would do the right thing. “We’re throwing tons of money away trying to teach participants how to become skilled investors – we said, we are going to make people smart and savvy enough to make the right investment decisions, but it just hasn’t worked.”Benna blames the newfound complexity on what he says was the small percentage of employees who wanted it. “What triggered this whole mess is that some of the more sophisticated participants were a pain in the butt,” he says. “You’d have these troublemaker loudmouths push human resources, and say, ‘why don’t we have this ‘flavor of the month.’ fund” These sophisticated employees are also the ones taking advantage of the education and advice being offered, he says.
The consequence of all the complexity is twofold, he says. First, employees felt they could be more active investors. “There is too strong a potential for employees to do the worst thing ever, which is moving in the wrong direction, panicking when things are bad and cashing out after they have been battered.” Secondly, the current plans induce “a kind of gridlock – employees get so overwhelmed they do not participate – they do nothing,” he says.Education didn’t work to stop employees from sabotaging their own futures, he contends, but legislation might. “We need a legislative mandate that when you change jobs, the money needs to be retained in a retirement account – there cannot be an option of ‘here’s a check, you decide,’” Benna says.
He also advocates mandating all employees be auto-enrolled in the plans, and that their contributions be automatically increased one percentage point per year to a maximum of 10% to 15%.Despite these misgivings, Benna insists the plans are benefiting millions of employees. He gets rankled whenever someone suggests the workforce would be better off had the 401(k) never been born, noting that the pension system was more fraught that many remember. “I am not anti-defined-benefit plan – in fact I sold them for decades– they are great, but only for those who stay with the same company for 20 or 30 years.”
“Blowing up the existing structures is the only way we can simplify them.”In 1978, when Congress passed the section of IRS code for which the plans are named, lawmakers aimed to limit the scope of cash-deferred plans being offered by some companies, but had no intent to revolutionize retirement. Benna, then the co-owner of the Johnson Companies, a benefits consultancy in suburban Philadelphia, was developing such a plan for a bank client when he happened on the idea section 401(k) could allow an entirely new option.The original 401(k) plans “could be explained to employees in just a minute,”
Benna, now 69 and semi-retired himself, says. “There were two options, a guaranteed fund and an equity fund,” he says. “With the guaranteed investment fund, we’d tell them this is what you will have when you retire. With the equity fund – which was usually something like the Fidelity Magellan fund – we’d say, you might have more, but you might have less. Most people would split their contributions 50-50 between the two.”As the plans were embraced by employers and financial institutions, Benna says 401(k)s were made so complex one needed to be an investing pro to make sense of them. “Now this monster is out of control. We went to three options, them to six, then to seven, then to 15 – it is far beyond what most participants were able to deal with,” Benna says. “And I am not convinced we have added value by getting more complicated.”
Better education was supposed to be the solution to intricacies of the plans, Benna says. If employees understood the options, the power of compound interest and dollar-cost averaging, and the advantages of making pre-tax contributions, it was believed they would do the right thing. “We’re throwing tons of money away trying to teach participants how to become skilled investors – we said, we are going to make people smart and savvy enough to make the right investment decisions, but it just hasn’t worked.”Benna blames the newfound complexity on what he says was the small percentage of employees who wanted it. “What triggered this whole mess is that some of the more sophisticated participants were a pain in the butt,” he says. “You’d have these troublemaker loudmouths push human resources, and say, ‘why don’t we have this ‘flavor of the month.’ fund” These sophisticated employees are also the ones taking advantage of the education and advice being offered, he says.
The consequence of all the complexity is twofold, he says. First, employees felt they could be more active investors. “There is too strong a potential for employees to do the worst thing ever, which is moving in the wrong direction, panicking when things are bad and cashing out after they have been battered.” Secondly, the current plans induce “a kind of gridlock – employees get so overwhelmed they do not participate – they do nothing,” he says.Education didn’t work to stop employees from sabotaging their own futures, he contends, but legislation might. “We need a legislative mandate that when you change jobs, the money needs to be retained in a retirement account – there cannot be an option of ‘here’s a check, you decide,’” Benna says.
He also advocates mandating all employees be auto-enrolled in the plans, and that their contributions be automatically increased one percentage point per year to a maximum of 10% to 15%.Despite these misgivings, Benna insists the plans are benefiting millions of employees. He gets rankled whenever someone suggests the workforce would be better off had the 401(k) never been born, noting that the pension system was more fraught that many remember. “I am not anti-defined-benefit plan – in fact I sold them for decades– they are great, but only for those who stay with the same company for 20 or 30 years.”
Tuesday, November 15, 2011
11-14-11
Today a FedEx dockworker of 23 years gets fired in SLG (Vernon California) He was fired because another employee went to management and told them that Sal Hernandez was telling the dockworkers to make sure they write up all exceptions and discrepancy when unloading trailers, so that managers have something to do!
On Wednesday 11-09-11, Sal was ask to surrender his badge and keys and was escorted off FedEx property, until further notice. As he was being escorted off; he asks the manager who falsely accuse him of this hearsay. And that he had his rights to confront his accuser to prove him for his wrong doing. Managers reply was, he was not at liberty to say who it was, and that Sal had no representation of any kind to be allowed for this kind of Rights.
Today Monday, Sal was ask to come in at 10:30 am, and was told he was terminated for misconducts!!! Sal has been standing up for his Rights to form a union at his workplace, since 2006, and now FedEx has retaliated on him. If we had union representation, Sal would have had his Rights for a union steward to be present; Sal would have Rights to file a grievance against FedEx for allowing hearsay. Without the Teamsters and no Union representation, WE ARE AT WILL EMPLOYEES…
On Wednesday 11-09-11, Sal was ask to surrender his badge and keys and was escorted off FedEx property, until further notice. As he was being escorted off; he asks the manager who falsely accuse him of this hearsay. And that he had his rights to confront his accuser to prove him for his wrong doing. Managers reply was, he was not at liberty to say who it was, and that Sal had no representation of any kind to be allowed for this kind of Rights.
Today Monday, Sal was ask to come in at 10:30 am, and was told he was terminated for misconducts!!! Sal has been standing up for his Rights to form a union at his workplace, since 2006, and now FedEx has retaliated on him. If we had union representation, Sal would have had his Rights for a union steward to be present; Sal would have Rights to file a grievance against FedEx for allowing hearsay. Without the Teamsters and no Union representation, WE ARE AT WILL EMPLOYEES…
Monday, November 14, 2011
Misconduct Photo
People get fired at this company for not following procedures, Constructive termination. Some people get fired under false accusations. No representation.But who is supervising the supervisor?
Friday, November 11, 2011
To All Veterans ...
The FedEx Watch Dogs would like to wish all veterans past and present a "Happy Veteran's Day" And a heart felt Thank You for serving your country with the ultimate sacrifice.
Wednesday, November 9, 2011
About Strikes
99 percent of Teamster contracts are negotiated and ratified without a strike.
It takes two third vote to go on strike.
It takes two third vote to go on strike.
Tuesday, November 8, 2011
About Union Dues
Union dues are two and a half your hourly wage
Example if you made $20 an hour your union dues will be $50 a month.
No union dues are collected until a contract is ratified.
Union due are also tax deductable!
Example if you made $20 an hour your union dues will be $50 a month.
No union dues are collected until a contract is ratified.
Union due are also tax deductable!
Thursday, November 3, 2011
Turk 182 said
The cost of groceries has risen .6% this yr, our cost of living raise was barely .3%, since our raise wasnt even 50% for the cost of food, i gotta wonder?
Is Uncle Fred gonna spring for a turkey for us this year?!
Is Uncle Fred gonna spring for a turkey for us this year?!
Subscribe to:
Posts (Atom)