Retirement benefits
The members of our union can count on a secure, steady income in retirement thanks to the pension benefits negotiated by our union.
The members of our union can count on a secure, steady income in retirement thanks to the pension benefits negotiated by our union. No federal or local law requires an employer to offer any retirement plan. Our union makes the employer pay for pension benefits as one of three major costs in our contracts: wages, healthcare, and retirement benefits.
What’s the difference between a pension plan and a 401(k) plan?
All of our union’s master contracts provide access to a pension benefit – something that is increasingly rare in the United States. Since the 1980s, U.S. employers have aggressively shifted the risk of retirement investments from the employer to employees by moving employees to 401(k) plans. Today, only 11% of private sector workers have a pension.
Who is paying?
HTC members pay nothing for their pension benefits. Under the contracts negotiated by our union, participating employers are required to pay for the pension. On the other hand, when employers offer a 401(k) plan, the workers almost always need to pitch in their own savings first.
Financial security
Our pensions provide guaranteed, lifetime monthly payments to participants. Pensioners receive a benefit every single month after retirement, for the rest of their life. With a 401(k) plan, once the savings run out, that’s it. In other words, with a 401(k) plan, workers have to “guess right” about how long they are going to live - if you live longer than you expected, you might run out of money!
The pension plans negotiated by our union are far more secure than most retirement plans, because they are multi-employer funds, protected by law. Many employers are responsible for maintaining the financial health of the pension plan and the benefits are guaranteed. In contrast, with a 401(k) plan, workers can invest their individual portfolios in stocks and bonds. This means that the value of their 401(k) plan goes up and down with the volatility of the stock market.
| Pension | 401(k) plan |
|---|---|
| Employer's money | Your money |
| Defined benefit | Defined contribution |
| Lifetime monthly payments | Limited amount |
| Guaranteed | Unpredictable |
How does the pension plan work?
Across all the pension plans negotiated by our union, workers earn pension credits when they work a minimum number of hours. In retirement, the value of a worker’s pension is calculated based on the number of credits they have as well as other factors including retirement age, if they are married, and which joint survivor benefit they elect.
Information about the pension benefits negotiated under our union’s master contracts can be accessed below. Members should contact their pension plan directly for more detailed information, calculations, and retirement planning.
If you work at a union shop that is not covered by one of the master contracts above, or you participate in a legacy retirement plan (for example, you work at a GRIWA hotel that was previously represented by a different union and participates in the prior union’s pension plan), please contact your Business Agent for information about your retirement benefits and how to contact your provider. You can call your Business Agent at (212) 957-8000.
Non-union hotels and casinos
Many non-union workers in the hotel and gaming industries struggle to save enough for retirement. The median savings in a 401(k) plan at retirement age is $95,642. If an individual lives for 20 years after retirement, that’s only $398 a month.
Our union has made it a priority to secure pension benefits in every new union contract. For non-union workers who already have an employer 401(k) plan, our union negotiates a benefit election. Workers who are present when the first union contract and pension benefit go into effect are able to elect for management continue to pay a match in the employer 401(k) plan or for management pay into the pension fund on their behalf. If workers switch to the union pension, they do not lose the savings that have been vested in their 401(k) plan.
If you work at a non-union hotel and are thinking about organizing with our union, speak to a union organizer. It’s confidential.
