The IAM wants you to believe their pension plan is the best choice for a secure retirement. But they won’t share the many drawbacks. Here are the facts:
Your pension benefit doesn’t increase as you make more money and doesn’t respect your seniority. It’s a fixed amount based on credited hours, without accounting for your pay rate. New hires would earn the same contribution as 30 year employees.
An employee must have at least 1,601 credited pay hours in a calendar year to receive full credit for one year of service in the IAM pension plan. This means Ready Reserve employees would not be able to earn the full service credit in a calendar year.
If you don’t earn a full year of benefits or if you leave before five years, where’s the money going?