pension rate increase

[Unregistered]

Why is our pension rate increasing more than our contract raise? It effectively wipes out our raise and then same.

This is the past historical data for Dow Jones and pension rate

2015: Dow avg 17587, pension rate 12.50%
2016: Dow avg 17927, pension rate 12.58%
2017: Dow avg 21750, pension rate 13.65%
2018: Dow avg 25046, pension rate 9.95%
2019: Dow avg 26379, pension rate 9.72%
2020: Dow avg 25457, pension rate 9.93%

(The dow index was as high as 29551 in 2020, but we are still averaging above 2018 average for dow, when our contribution rate was 9.95%), how does that justify an almost 4% increase?

[Unregistered]

You need to attend a few meetings and read the board packages when they are on line.

Our pension is great, amazing but it is invested in some very old fashion "Blue Chip" stocks.

Now look at what is driving the market, NVDA, CRM, MSFT, CSCO. The market is Tech heavy, our fund is not. It is not like our fund went out and bought millions of dollars worth of Amazon or Facebook stock five or ten years ago.

Take a look at what is in the Vanguard Information Tech ETF Fund, that EFT is up 20% over the last five years.


You also need to remember the fund is a year behind and it closes out on the end of the fiscal year as compared to the calendar year.

[Unregistered]

You need to attend a few meetings and read the board packages when they are on line.

Our pension is great, amazing but it is invested in some very old fashion "Blue Chip" stocks.

Now look at what is driving the market, NVDA, CRM, MSFT, CSCO. The market is Tech heavy, our fund is not. It is not like our fund went out and bought millions of dollars worth of Amazon or Facebook stock five or ten years ago.

Take a look at what is in the Vanguard Information Tech ETF Fund, that EFT is up 20% over the last five years.


You also need to remember the fund is a year behind and it closes out on the end of the fiscal year as compared to the calendar year.

Invest the whole fund in QQQ and let it ride.