3M's new hires get 401(k), no pension

3M's new hires get 401(k), no pension

There are 24 comments on the TwinCities.com story from Mar 31, 2008, titled 3M's new hires get 401(k), no pension. In it, TwinCities.com reports that:

New hires at 3M Co. no longer will be eligible for the company's pension plan. The company also said Monday it's making some changes to its retiree health coverage.

Join the discussion below, or Read more at TwinCities.com.

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Ranger47

High Point, NC

#1 Apr 1, 2008
3M's performance has been abysmal during the almost 2.5 years since Buckley's been at the helm. For the man called in to grow EPS, the stock price has shown zero growth while the Dow has gained 10% over the same period. If this is the plan for earnings growth, it's on a track to move to from a once quality company to something less than average.

I hope we don't have to wait to see the short fall of his 10% growth projection for 2008 or the full impact of his acquisitions before the Board gives him a Merc to motor on down the river.....

http://moneycentral.msn.com/investor/charts/c ...
Mr Germane

Minneapolis, MN

#2 Apr 1, 2008
Ranger47, your comments have nothing to do with the story. Thanks for nothing.
Reality

Saint Paul, MN

#3 Apr 1, 2008
3M is abandoning MN. in both facilities and employment opps.

I am a 30 year old educated professional and where as I would have once considered 3M for employment I no longer consider them to be attractive enough to get me in there. The reputation for pension benefits is what compensated for their reputation as a dinosaur of a work environment. With out it I would not even bother to seek a prof. position there.
So whats new

Monroe, LA

#4 Apr 1, 2008
Why is this news? Companies large and small have been abandoning pensions plans for years. Alot of this has been a push by the government to make pensions portable after all the theft/corruption that has happened to pensions in the last 15 years. With people not staying in jobs as long, companies have found that it's best for the newer employees to allow better access to 401k's. By moving to 401K's you can go from company to company and take it with you. Not wait for some Pension from some company that doesn't exist anymore. Or some pension that some thieving crooks didn't secure correctly and turned to dirt.
Mark

Saint Paul, MN

#5 Apr 1, 2008
So whats new wrote:
Why is this news? Companies large and small have been abandoning pensions plans for years. Alot of this has been a push by the government to make pensions portable after all the theft/corruption that has happened to pensions in the last 15 years. With people not staying in jobs as long, companies have found that it's best for the newer employees to allow better access to 401k's. By moving to 401K's you can go from company to company and take it with you. Not wait for some Pension from some company that doesn't exist anymore. Or some pension that some thieving crooks didn't secure correctly and turned to dirt.
Agreed, this story is not news. It is a policy change that only impacts new hires at 3M. So why should anybody care, unless of course you are applying for positions there.
Job-ophile

Plymouth, MN

#6 Apr 1, 2008
This is why America needs to be careful about immigration. I realize that the story did not mention immigration, but consider this: Many people here in the USA want to go to school and get a "piece of the pie" (i.e, a good-paying job with good benefits). Also, many people want to move to the USA, go to school, and get a "piece of the pie". All of that is fine in a way and you can't blame folks for wanting to better themselves. The only problem is this: the "pie" in America is getting smaller and smaller every year, while the number of people wanting a piece of it is getting larger and larger every year.
Jilly

Saint Paul, MN

#7 Apr 1, 2008
Reality wrote:
3M is abandoning MN. in both facilities and employment opps.
I am a 30 year old educated professional and where as I would have once considered 3M for employment I no longer consider them to be attractive enough to get me in there. The reputation for pension benefits is what compensated for their reputation as a dinosaur of a work environment. With out it I would not even bother to seek a prof. position there.
Reality, have you not yet figured out that companies consider YOU for employment, you don't necessarily get to consider them? 3M, like the US, has longer lines waiting to get in that get out.
Anon

Minneapolis, MN

#8 Apr 1, 2008
The "Division Headquarters" moving from Maplewood to Hong Kong is literally 2 people. 2.
Red Ryder

Monroe, LA

#9 Apr 1, 2008
So whats new wrote:
Why is this news? Companies large and small have been abandoning pensions plans for years. Alot of this has been a push by the government to make pensions portable after all the theft/corruption that has happened to pensions in the last 15 years. With people not staying in jobs as long, companies have found that it's best for the newer employees to allow better access to 401k's. By moving to 401K's you can go from company to company and take it with you. Not wait for some Pension from some company that doesn't exist anymore. Or some pension that some thieving crooks didn't secure correctly and turned to dirt.
Just wait till Congress takes away the Roth option by taxing that ,too. Just a matter of time.
A Reagan Baby

Boyd, TX

#10 Apr 1, 2008
A 401k that kicks 3% salary plus 1 to 1 match up to 6% is a really good 401k. An employee could kick in 6% and get back 9% back. If this is cheaper than the pension plan (most likely it is) there is no wonder 3m cannot compete of the global market. I think they will leave MN in ten years unless we lower our 9.9% corporate tax. MN is going to be the laughing stock of world when the socialists run out a first class company like 3m.
Wow

Saint Paul, MN

#11 Apr 1, 2008
Anon wrote:
The "Division Headquarters" moving from Maplewood to Hong Kong is literally 2 people. 2.
It is unfortuante that you feel companies consider the employee any more than the employee considers them. Evidently your educational expereince(or lack there of) has you convinced that you are at the mercy of the employer. However, for myself and I suspect many of the people who are qualified for professional positions at a company like 3M, it is in fact the employer who needs certain candidates that are rare and can demand more than cruddy offers. It's called being desireable. What a sad experience to have to go through life feeling like you are at the mercy of anyone who is hiring. If that were the case corporation would not recruit. We are talking engineering legal and other professions here. Not line level employment. Expand your reality. Many candidates become employees after telling the employer what they need. It's just a different league in that regard. some people never see it, but again alot of people in that position have looked to 3M as a match in that world.
Wow

Saint Paul, MN

#12 Apr 1, 2008
Jilly wrote:
<quoted text>
Reality, have you not yet figured out that companies consider YOU for employment, you don't necessarily get to consider them? 3M, like the US, has longer lines waiting to get in that get out.
It is unfortuante that you feel companies consider the employee any more than the employee considers them. Evidently your educational expereince(or lack there of) has you convinced that you are at the mercy of the employer. However, for myself and I suspect many of the people who are qualified for professional positions at a company like 3M, it is in fact the employer who needs certain candidates that are rare and can demand more than cruddy offers. It's called being desireable. What a sad experience to have to go through life feeling like you are at the mercy of anyone who is hiring. If that were the case corporation would not recruit. We are talking engineering legal and other professions here. Not line level employment. Expand your reality. Many candidates become employees after telling the employer what they need. It's just a different league in that regard. some people never see it, but again alot of people in that position have looked to 3M as a match in that world.
Mark

Saint Paul, MN

#13 Apr 1, 2008
A Reagan Baby wrote:
A 401k that kicks 3% salary plus 1 to 1 match up to 6% is a really good 401k. An employee could kick in 6% and get back 9% back. If this is cheaper than the pension plan (most likely it is) there is no wonder 3m cannot compete of the global market. I think they will leave MN in ten years unless we lower our 9.9% corporate tax. MN is going to be the laughing stock of world when the socialists run out a first class company like 3m.
Don't sell us short, there are plenty of people already laughing at us.
Huh

Saint Paul, MN

#14 Apr 1, 2008
So whats new wrote:
Why is this news? Companies large and small have been abandoning pensions plans for years. Alot of this has been a push by the government to make pensions portable after all the theft/corruption that has happened to pensions in the last 15 years. With people not staying in jobs as long, companies have found that it's best for the newer employees to allow better access to 401k's. By moving to 401K's you can go from company to company and take it with you. Not wait for some Pension from some company that doesn't exist anymore. Or some pension that some thieving crooks didn't secure correctly and turned to dirt.
No news? Reduced 401K contributions immediately of about $1000 to $1500 per year for every nonunion employee in the US is not news? Elimination of much of retiree healthcare funding is not news? I see this as a speeding-up of the country's move to totally socialized medicine and the most likely pool of funding will come from the inclusion of Social Security and Medicare taxes on unearned income and large estate taxes. In other words, the benefits for us shareholders will be naught.
Becky

Minneapolis, MN

#15 Apr 1, 2008
There is a big difference between a pension and a 401(k). Pensions are defined benefit plans, which means you are guaranteed a particular monthly income when you retire. 401(k)s are at the mercy of the market, even though historically "the market" is good for investors who don't put all their eggs in one basket - which was the real issue for the Enron/WorldCom/ADC employees. It wasn't so much that the books were cooked but that they didn't diversify enough to protect themselves. Same with the technomillionaires who became broke over night - the key word for real estate is location, the key word for investing is diversify.

Anyhoo...pensions provide a much greater measure of security for people than 401(k)s because, although a pension fund can lose money, an individual in general does not.

I didn't realize any private sector companies still had pensions.
Ranger47

Cincinnati, OH

#16 Apr 1, 2008
Mr Germane wrote:
Ranger47, your comments have nothing to do with the story. Thanks for nothing.
If you have no ownership in 3M, your correct, it means nothing. I still foolishly do...
NNR

Saint Paul, MN

#17 Apr 1, 2008
Job-ophile wrote:
This is why America needs to be careful about immigration. I realize that the story did not mention immigration, but consider this: Many people here in the USA want to go to school and get a "piece of the pie" (i.e, a good-paying job with good benefits). Also, many people want to move to the USA, go to school, and get a "piece of the pie". All of that is fine in a way and you can't blame folks for wanting to better themselves. The only problem is this: the "pie" in America is getting smaller and smaller every year, while the number of people wanting a piece of it is getting larger and larger every year.
Why am I not surprised that it didn't take long for the immigra-phobes to blame immigration policies for another totally unrelated situation?

Find somewhere else to push your agenda where it's relevant.
Cosmo

Caldwell, ID

#18 Apr 1, 2008
Spot on, Reagan Baby. I watched as California taxed and health-benefited good companies out of that state. Of course, the state has so many good companies, there are still a sizable group of them paying for the failed socialist policies.

If Minnesota voters were smart, they'd stop electing flavor-of-the-monthers and collectivists and give 3M free reign and a no-tax clause because of what they mean to the state's economy. It's not just 3M, folks. It's the subsidiaries, the small business that feed into 3M, etc.

As a side note, my family has benefited greatly from the current retiree's pension and health benefits--a nice self-funded plan that allows 3M to REALLY take care of its employees both past and present. Thanks, fellas!
Jilly

Saint Paul, MN

#19 Apr 3, 2008
A Reagan Baby wrote:
A 401k that kicks 3% salary plus 1 to 1 match up to 6% is a really good 401k. An employee could kick in 6% and get back 9% back. If this is cheaper than the pension plan (most likely it is) there is no wonder 3m cannot compete of the global market. I think they will leave MN in ten years unless we lower our 9.9% corporate tax. MN is going to be the laughing stock of world when the socialists run out a first class company like 3m.
It's not a 1:1 match - where did you get your information?
Alex

Saint Paul, MN

#20 Apr 3, 2008
One of the most important reasons for working at 3M was the knowledge that when you retired, you could purchase 3M Medical to have as a supplemental insurance. Now that's gone.. I guess it is a sign of the times..

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