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Pensions
Posted on 4/24/25 at 3:50 pm
Posted on 4/24/25 at 3:50 pm
Why were they phased out in favor of 401k’s???… seems counterintuitive to employees and employers… I imagined unemployment wold be lower if people knew that the company they worked at for 20+ years would have their back when they retired… Google says Regan killed pensions by enforcing a 1978 law that gave employers a choice which prompted him to make federal employees participate in a 401k(from my understanding)
This post was edited on 4/24/25 at 3:59 pm
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Posted on 4/24/25 at 3:55 pm to lepdagod
Defined benefit plans created massive liabilities for the businesses and far more expensive to do. Their models have largely been unsustainable for companies to do.
This post was edited on 4/24/25 at 3:57 pm
Posted on 4/24/25 at 3:55 pm to lepdagod
Enron. Take the 401K
Posted on 4/24/25 at 3:57 pm to lepdagod
Boomers killed them. More pulling up the ladder behind them from the worst generation to ever walk the earth.
They got theirs and they don't want anyone else to have it as easy or as good as they did.
They got theirs and they don't want anyone else to have it as easy or as good as they did.
This post was edited on 4/24/25 at 4:01 pm
Posted on 4/24/25 at 4:10 pm to lepdagod
I have a little pension from my stint at BB&T.
It's not much, but a few hundred extra every month is fun money.
It's not much, but a few hundred extra every month is fun money.
Posted on 4/24/25 at 4:22 pm to lepdagod
I work for a large refinery. We have a Pension and of course a 401k.
Posted on 4/24/25 at 4:23 pm to lepdagod
Frontline did a piece on this a few years back.
Frontline piece on YT
Frontline piece on YT
This post was edited on 4/24/25 at 4:24 pm
Posted on 4/24/25 at 4:38 pm to lepdagod
I have both and it has kept me at the company for 20+ years.
Posted on 4/24/25 at 4:46 pm to lepdagod
quote:
Regan killed pensions by enforcing a 1978 law that gave employers a choice which prompted him to make federal employees participate in a 401k(from my understanding)
Partially correct. Federal employees do have a 401k but they also still receive pensions and started paying into social security.
Posted on 4/24/25 at 4:49 pm to lepdagod
Bc the financial services industry could not stand to see all that money in pension funds that they could not take a slice of. Simple as that.
Posted on 4/24/25 at 4:51 pm to lepdagod
It became too expensive as more and more people started living longer.
Example is my grandfather retired at age 65 and he received a pension until he died at age 92.
Example is my grandfather retired at age 65 and he received a pension until he died at age 92.
Posted on 4/24/25 at 4:59 pm to TigersHuskers
quote:your generation doesnt even know what a woman is. Sit the frick down and shut the frick up with your attacks on boomers. Attacking an age group is as childish as it gets.
Boomers killed them. More pulling up the ladder behind them from the worst generation to ever walk the earth.
They got theirs and they don't want anyone else to have it as easy or as good as they did.
Posted on 4/24/25 at 5:13 pm to lepdagod
Us older workers have a pension and 401k, but the pension was phased out for newer employees were I work.
In fact, I’ll have a smaller pension coming to me from a former job as well.
In fact, I’ll have a smaller pension coming to me from a former job as well.
Posted on 4/24/25 at 5:25 pm to Camijoe
quote:
Bc the financial services industry could not stand to see all that money in pension funds that they could not take a slice of. Simple as that.
Who do you think handled the investments by the pension funds?
Posted on 4/24/25 at 5:45 pm to lepdagod
Pensions need to go away for govt workers
Posted on 4/24/25 at 5:56 pm to kywildcatfanone
pensions cost the employer a considerable amount more.... 401k's are mostly funded by the employee with only a slight 6% match by the employer
Posted on 4/24/25 at 5:58 pm to lepdagod
Eventually the ponzi will crash. SS is headed the same way.
Posted on 4/24/25 at 6:03 pm to CharlesUFarley
Cami Joe is correct. Most defined benefit pension funds 40-50 years ago had limitations and oversight by real committees that limited use of the funds. The financial services companies wanted to get their hands on that money and invest it so they could make money off it. So the poorly managed defined benefit pension funds were highlighted and these firms promoted fear of DB pensions. They also worked politicians to make laws that would write high liability for pensions on the company books.
All of this led to companies like Vanguard getting huge 401k dollars, and becoming financial giants using the retirement funds of middle America.
All of this led to companies like Vanguard getting huge 401k dollars, and becoming financial giants using the retirement funds of middle America.
This post was edited on 4/24/25 at 6:05 pm
Posted on 4/24/25 at 6:55 pm to FlyDownTheField83
The other reason 401ks took off is the portability. The typical plan doesn’t have a vesting period, so an employee can look at the market and find new opportunities without sacrificing their retirement savings.
Posted on 4/24/25 at 9:36 pm to CharlesUFarley
Pension funds are not handled by your average local little dweeb offering to help you with your IRA.
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