WXXI: Those who giveth...can take it away!

[Mark Giardina]

One of the nice benefits of working at WXXI was that the company would chip in 7% to TIAA-Cref, which is the retirement program offered by the broadcasting operation. For those not familiar with TIAA-Cref, it's the same retirement program offered to teachers. It's a great program if I say so myself.

Anyways I found out that as part of the station's efforts to reduce costs that includes early retirement packages and voluntary departures, WXXI has ended its long-standing policy of donating 7% to the 403-B plan.

I can't say that in this day and age that I am surprised to hear this news. After all how many companies have reduced or eliminated employee retirement and or medical benefits?

Thanks to TIAA-Cref when I left the station in 2004 I managed to take with me a nice nest egg, which I rolled over into my current retirement account. What I did was put my yearly raises (when I got them) right into my 403-B plan for the 14 years I was at the station.

Now I wonder just how many of those employees left at WXXI will be able to stash away money to afford a decent retirement?

 

[Towerclimber31]

While I feel for the WXXI employees who have lost this very valuable benefit, I feel for the hundreds of people working at radio stations who never had any benefits.

I also feel for the people who work for companies everywhere who have seen their benefits cuts or eliminated.
It certainly makes you think twice about lacing up the skates at Manhattan Park or a game of touch at Aberdeen.

IMO, the truly sad part is I think there are a lot of companies doing this just because they can, not necessarily because they have to.

When people, especially in radio are fearful of losing their livlihood altogether, they are not likely to chime in too loudly.

On that note, I hope you retirement finds you happy and well!

 

[SirRoxalot]

Just for the record, there are a number of major broadcasting companies that have ceased to match money put into 401K funds. Entercom is one. I'm not sure, but I think that Clear Channel is another.

Employees likely still have the option of putting money into TIAA-Cref on their own. Hopefully, this is a temporary situation that will be reversed when WXII has a better handle on what their level of funding from various sources will be.

 

[heydaybegone]

Rox...agreement to a point.
First... Employee contribution can always continue as long as the company "administers" the plan. (That's a good thing in itself). There are expenses for the company to administer the plan, which have not found themselves on the chopping block yet. (But not immune)
Secondly, anything that is taken as a "temporary" situation is not likely to find itself back on the Balance Sheet anytime soon. Once it's out of sight, it's out of mind (especially in a funding situation)
Just a real life scenario from what I now do for a living.
That's all

 

[Towerclimber31]

Good points guys...

And if you situation allows you to keep contributing, even through the company isn't matching, you will still be ahead of the game.

I would also suggest ALWAYS... that people who see these deductions on their pay stubs actually check the account to see the the employer has done the right thing.

I know of many instances where people were having 401K, parking, child support, etc. deducted from their paychecks and it wasn't going where it was supposed to go. It happens, not saying with malice, but it happens.

It is incumbent upon all of us to check our own situation out.

 

[Mark Giardina]

First... Employee contribution can always continue as long as the company "administers" the plan. (That's a good thing in itself). There are expenses for the company to administer the plan, which have not found themselves on the chopping block yet. (But not immune)
Secondly, anything that is taken as a "temporary" situation is not likely to find itself back on the Balance Sheet anytime soon. Once it's out of sight, it's out of mind (especially in a funding situation)
Just a real life scenario from what I now do for a living.
That's all

I never inquired if WXXI would continue to administer the TIAA-Cref plan. It would be a damn shame if the station didn't because even though it's not contributing to the plan anymore, the least the station could do is provide some assistance for those employees who still want to contribute.

Another scenario is that WXXI employees could roll over their TIAA-Cref monies into another retirement account. I happen to know someone who has done a great job for me and if any of my former colleagues want more information just leave me a message here and I will reply. ( No I am not in the investment business seeking new clients; just in case some people might think that.)


Giardina