The Guild recently learned that quite a few eligible members in the Portland unit are not taking advantage of the 401(k) benefit provided by its contract. With such uncertainty over the future of traditional retirement benefits like Social Security and defined-benefit pension plans (i.e. the recent Pension Protection Act of 2006), saving through individual plans has never been more important. Even with the pension plan under our contract, it is strongly advised that members plan on personal savings for retirement as well.
To sweeten the deal, there is also a company match on 401(k) contributions. These matches are outlined below, and the Guild strongly encourages all members to at least contribute the minimum percentage to gain the full match based on length of service. Don't leave free money on the table!
This match does help mitigate some of the inherent risk associated with investing, and when your 401(k) is up, the match will help magnify gains. It is never too early or late to start investing for your future.
- For workers with less than 5 years of service, the company will match 25 cents for each $1 a worker saves, up to 4 percent of earnings.
- For 5 but less than 10 years of service, the company will match up to 5 percent of earnings.
- For 10 but less than 15 years, up to 6 percent.
- For 15 but less than 20 years, up to 7 percent.
- For 20 but less than 25 years, up to 8 percent.
- For 25 but less than 30, up to 9 percent.
- Over 30 years, up to 10 percent.
At all times, you can contribute up to 18 percent of your salary. After age 50, you can add even more. You can change your contribution amount during the enrollment period each quarter.
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