Please post anonymously. I didn't find any recent post regarding this topic - everything seems to be focusing on the pending workforce restructuring actions at LLNL and LANL.
This article offers a good perspective on how the LLNS (and LANS) TCP-2 401(k) match really stands up (or doesn't stand up) to what some private sector employers are starting to implement. Maybe we should push LLNS and LANS to add Devon Energy to the list of BenVal comparator companies?
Check article here
10 comments:
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The trailing / was needed.
What I'd like to see is the $20,500 a years ceiling for tax deferred contributions raised to at least $100K a year. The likelihood of anyone doing this are few and far between but it would allow "anyone" to defer as much as they could into their 401K therefore bringing the possibility of retirement at age 50- 55 into an achievable goal. As it stands now America is a WFL ( work for life ) society and that to me is the same as being sentence to a term of life in prison. Working day to day solely to pay the bills_ "is not a life"_, but consequently most of our society does just that and now the rest of us that had a pension plan with a future insight are doomed to the same sentence by DOE / NNSA and good old LLNS corporate American greed.
As it stands today each and everyone of us must have between $1.5M to $2.0M in the bank by age 60 with our homes and cars paid in full so that a 7% yield with a 4% draw will be enough income to keep food in the refrigerator and the lights on. For many this dream will never come true.
For the new hires at LLNL under the TCP-2 plan it's almost impossible to achieve this in a savings account with a $20,500 ceiling unless the individual wants to play the stock market and take their chances. To me the stock market is a fluctuating crap shoot and if I wanted to gamble I'd go to Vegas. I would not recommend playing this game to anyone.
"What I'd like to see is the $20,500 a years ceiling for tax deferred contributions raised to at least $100K a year"
I think you are in a completely different world from new hires. You really have 100k in disposable income to put away? Not many can say that, unless they are management. It truly is a 2-tier society.
December 7, 2007 9:20 PM
You missed the point and someday when you realize that $20,500 a year for 40 years will not be enough. Your savings must yield at least 7% if you that while you draw 4% for the following 40 years I hope. If not you'll be asking for the very same ceiling. The request to raise the ceiling what at make sure people were not limited in what they were albe to save. So, no, I am not management I just like unlimited possibilities. Remember in today's world you need $1.5M -$2.0M to acquire your dream. In 40 years from now in order to live the same life style you may need $5M - $7M in the bank. Inflation is a wonderful thing. In my time gas was .25 cent a gallon and a beautiful home was $16-$20K and a well to do persons income was $36K. Times have changed, I think, unless I missed something. I'd start running some spread sheets if I were you and think about retirement unless of course you have plans on working for life or becoming a social burden.
The limit with employer contributions is actually in the 40k plus range per year.
"To me the stock market is a fluctuating crap shoot and if I wanted to gamble I'd go to Vegas."
It's obvious you don't understand the stock market or investing. If you're putting all your 401k money into low-yield bond or worse, money market funds you'd be lucky to even match inflation let alone beat it (inflation risk).
When you invest in a company long term you are purchasing a small % of it. You take ownership in that investment. It is not a "crap shoot" where you know the odds are against you.
I've been pretty much contributing the maximum to my 403b/401k since I was 23, and I don't have any worries about not having enough to retire on.
I think the limit is actually something like $49K. But only $15,500 ($20,500 if over 50) is tax sheltered. There rest is after tax money.
No, not correct. From Wikipedia...
Plans set up under section 401(k) can also have employer contributions that (when added to the employee contributions) cannot exceed other regulatory limits. The total amount that can be contributed between employee and employer contributions is the section 415 limit, which is the lesser of 100% of the employee's compensation or $44,000 for 2006, $45,000 for 2007, and $46,000 for 2008. Employer matching contributions can be made on behalf of designated Roth contributions, but the employer match must be made on a pre-tax basis.
Complete link is http://en.wikipedia.org/wiki/401(k)
Who needs a 401K when you make this type of money. Here's the salaries of LLNL_ULM. Does this give you an idea of what the 17 pages of ULM at LLNL make or what they're going to make in the future. Would you have any trouble retiring in 50% of this money. I sure as heck wouldn't. Now you know why "they" are divorced from the workers. "They" are in their own glorious world of pleasantries and laughing at you all the way to the bank. I can't wait until there's a congressional investigation on the salaries of LLNL ULM.
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