CPF VS. 401(K)

Many of our employers push 401(k) retirement accounts over the IUOE Central Pension Fund (CPF). The dangers of a 401(k) over a pension are clear — one only needs to be reminded of Enron, Worldcom and other cases of employees getting their retirement benefits manipulated, lost, or criminally pulled out from under than to see that our pension (which costs employers more than their chosen 401(k) plans) is your best bet.

Our CPF is a multi-employer fund established in 1960. It is governed by a Board of Trustees comprised of employee and participating employer representatives. It is currently the 4th largest labor-management pension fund in the nation. Benefits paid to the current 55,000 retirees for fiscal year 2005 were $446 Million Dollars.

Please review the Chart below and if you still have questions regarding our Pension see www.cpfiuoe.org

COMPARE FOR YOUR SELF

Employee contributions required*

401(k)

YES

CPF (Central Pension Fund)

NO

*In a 401(k) you put in your own money, the CPF is money paid for you by your employer.

 

Employee pays payroll taxes on contributions

401(k)

YES

CPF (Central Pension Fund)

NO

CPF contributions are not taxable to you.

 

Employee pays investment fees

401(k)

YES

CPF (Central Pension Fund)

NO

With a 401(k), more of your money is spent on fees and not on your retirement.

 

Employee assumes investment risks

401(k)

YES

CPF (Central Pension Fund)

NO

401(k) can be lost in its entirety and does not guarantee any monetary benefit for any period of time.