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Originally Posted by bssc
My megacorp just provided us with a training seminar on the changes that were being made to the defined contribution retirement plan.
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Ford Salaried now has 2 plans. The "old farts" still have DB, anyone hired after (IRRC) 2001 is DC.
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1) All new people are automatically signed up for the 401(k) when they start employment.
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Ford salaried new hires have to wait 13 months
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2) Anyone starting after April Fools day while get less benefits (about 10% versus the current 12%) in terms of matching and profit sharing.
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Match on, match off at Ford, depending how bad things look.
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3) Of course, to get the full 5% match portion, you have to contribute 5%. The FA indicated that this wasn't always possible and that people should start out with 1%
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Bad advice. "Pay yourself first" and "Pay yourself the most you can afford !"
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4) TPTB have limited options to six basic funds, company stock and a target fund. If you want anything else, you have to get a self managed brokerage account.
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That's nice ! The Ford salaried 401k allow you to choose from about 20 mutual funds, a money market "like" thing, company stock and some ETFs. Outside brokerage account ? No way !
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5) They limited the amount in company stock to 10%. I know some people who have all their retirement in the company stock. I think that this is a good thing.
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I guessing you mean that it is good that you can't sink 100% of your retirement into the company ! There are thousands of Ford Salaried in this "leaky canoe" today. Luckily I was not.
Other retiree benefits are being chipped away. Ford Salaried used to get full medical, dental, vision, hearing, etc, etc, just like hour continues to get today.
As of Jan 2008, when you turn 65, you get $1800/year (plus same for spouse) to buy wathever "gap" coverage you can find. Nothing else, zip, zero, nada !
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