To replace the current pension you will have the option of investing part of your increase in salary / wage into a Company 401k. This is a pretax contribution just as before and here is how this breaks down.
Hourly and Salary starting after 12/31/02
Your pension contribution under the old plan was 12%. In the new plan the company will match up to 6% so that your contribution of 6% and the company match of 6% would be the same 12%.
Hourly and Salary starting on or before 12/31/02
Your pension contribution under the old plan was 15%. In the new plan the company will match up to 7.5% so that your contribution of 7.5% and the company match of 7.5% would be the same 15%.
This means that you can choose to participate in the Company 401k and how much you would like to contribute. You choose to contribute less in to the pension and keep more of the increase in your wage or Salary.
If you participate you will also have more options on how that money is invested, you will have multiple mutual fund options as well as the option to have the same group manage it that managed the former pension.
Since we can only offer one 401k per employee group, your current company 401k and your former pension amounts will be rolled into the new 401k.
If you are within your one year waiting period to enroll in the current pension program you will be eligible for the 401k and the matching on January 1, 2008. Your vesting will still rely on your anniversary date.
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