Prime Inc., Springfield, Mo., is about to implement what it says is a unique retirement program for its owner-operator/independent contractors.
“We think we’re going to be one of the first companies to offer a retirement program for owner-operators and independent contractors,” says Prime’s Don Lacy. The difference, he says, is this is not a 401(k) that relies on driver contributions. Instead, it is a totally company-funded program.
Drivers must work for the company for 10 years in order to be fully vested. Once they’re vested, drivers are entitled to a retirement payout at age 65, even if they’ve left the company by then. “We’re even going to give credit to people coming from other companies,” Lacy says. “Say you’ve been with another company for 10 years – we’ll give you five years credit for that. Then you only have to work for us for five years to be vested. No tax is paid on the retirement funds until they are withdrawn at retirement.
While the details are still being worked out, Lacy says the plan will be managed by a large, well-recognized retirement plan manager, where drivers can look up where they stand with their program.
“When people go to work for the postal service or something like that, people figure they’re going to do their 20 years or more,” Lacy says. “We haven’t had that kind of mindset in trucking, and we’d like to change that type of thinking.”
“We think we’re going to be one of the first companies to offer a retirement program for owner-operators and independent contractors,” says Prime’s Don Lacy. The difference, he says, is this is not a 401(k) that relies on driver contributions. Instead, it is a totally company-funded program.
Drivers must work for the company for 10 years in order to be fully vested. Once they’re vested, drivers are entitled to a retirement payout at age 65, even if they’ve left the company by then. “We’re even going to give credit to people coming from other companies,” Lacy says. “Say you’ve been with another company for 10 years – we’ll give you five years credit for that. Then you only have to work for us for five years to be vested. No tax is paid on the retirement funds until they are withdrawn at retirement.
While the details are still being worked out, Lacy says the plan will be managed by a large, well-recognized retirement plan manager, where drivers can look up where they stand with their program.
“When people go to work for the postal service or something like that, people figure they’re going to do their 20 years or more,” Lacy says. “We haven’t had that kind of mindset in trucking, and we’d like to change that type of thinking.”
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