Posted on 05/28/2024 10:06:28 PM PDT by where's_the_Outrage?
The phrase “pension benefits” may come up a lot in the next several days as negotiations between the United Auto Workers union and the Big Three automakers go down to the wire to avert a strike. But for most private-sector US workers, pensions disappeared long ago.
In a traditional pension, employers contribute, invest and manage retirement funds for their workers, who then receive guaranteed monthly checks for life after they retire. But over the past several decades, employers have either closed or frozen their pensions and turned instead to retirement savings vehicles like the 401(k), which put much more of the onus on workers to save, invest and manage their own money for retirement.
“We’ve shifted from a more paternalistic system to a do-it-yourself savings plan,” said Karen Friedman, executive director of the Pension Rights Center.
That’s not to say traditional pensions — also known as defined benefit (DB) plans — are completely dead, at least not when you look at the broad landscape of all US workers. But access to these benefits has dropped steeply and they are not likely to make a comeback.
Who has a pension in 2023
The workers most likely to still have a DB plan are unionized workers in both the public sector (think federal, state and local government workers and teachers) and the private sector (e.g., autoworkers), as well as active-duty military members with at least 20 years of service.
(Excerpt) Read more at cnn.com ...
Being an expat pensioner (term I heard often in Thailand) it caught my eye.
I have Army buddies that invested well, have money in the bank, but are careful to spend to not decrease their investments.
Several of us has decent pension incomes from Military, SS, other that our spending is based on those monthly paychecks which does not cut into out investment income.
My biggest mistake IMHO was to agree to an annuity. It was great when it started, but 10 years later there is no inflation adjustment.
That said, I believe the Dems who hate the military will eventually target retired military also receiving SS, charging us with double dipping. I'm probably OK, but new military retires should be watchful.
Basically, if you work for government - you are fully protected with life-long pensions and excellent health care. Government takes care of its own, and will continue to do so.
If you work for the private sector, you are on your own. tough luck
Its incredible how similar to China and Russia the USA is this regard. Probably Russia is less corrupt and less under the control of its Political-crony oligarchs now.
>> Basically, if you work for government - you are fully protected with life-long pensions and excellent health care. Government takes care of its own, and will continue to do so.
I remember a time when if you worked for the gubmint you accepted a lower salary with the understanding that your fringe bennies would sort of make up for it. (Socialism in other words.)
But now... gubmint employees demand big honkin’ paychecks AS WELL AS gold plated fringe benefits.
Especially teachers. Er, sorry, I meant *educators*. That corrupt class of ‘ratfilth CAN NEVER BE PAID ENOUGH for indoctrinating our children into marxism. A pox upon them.
Here’s how we got here.
Senator Howard Metzenbaum (champion of labor) slipped a poison pill in the Tax Reform Act of 1986 changing the rules for Defined Benefit (DB) pension plans in vesting rights from 10 years to 5 years. This change was to take place in 1989. I worked for a company with 20,000 on-site employees (jet engines) in Evendale, Ohio in 1988. The massive layoffs started soon after. This was so easily predicted. Now we have 20,000 illegal invaders crossing the border in a week to take American’s jobs and private company Defined benefit (DB) pension plans have been gutted. Now American workers are being outright replaced.
You don’t think Howard knew what he was doing? Introduced in the Senate as S.3527 Worker Adjustment and Retraining Notification Act of 1988 by Howard Metzenbaum on June 16, 1988. In 2001, there were about 2,000 mass layoffs and plant closures that were subject to WARN advance notice requirements and that affected about 660,000 employees.
88 percent of public employees are covered by a defined benefit pension plan.
https://en.wikipedia.org/wiki/Defined_benefit_pension_plan
https://en.wikipedia.org/wiki/Tax_Reform_Act_of_1986
GE Jet Engines
Evendale, Ohio
bttt
Defined benefit plans are not compatible with hedge funds and Mitt Romney types.
defined pensions keep horrible people in govt positions where they would have been fired in the private sector...
cops and military will do ANYTHING to keep their pensions which scare the hell of the rest of us....it means they'll do the bidding of big govt no matter what....
“With defined benefit pensions, the entire burden of saving and investing money for a worker’s retirement falls on the employer, although some DB plans now require employees to contribute some money as well.”
At the large company I worked for toward the end of the 80’s how much a person got every month in retirement funds from their pension was determined by a formula usually based on salary and not years of service. There was a minimum salary point you had to make before you contributed any thing toward your own pension. The last year I was there you had to make around 25,000 dollars before pension funds started to be taken out. I remember you were well into three quarters of the year gone. The obvious intent was to screw most of the worker bees.
That same large company also had a 401k. I remember all the promises when it was implemented were broken in just a couple of years after. The 10 year averaging for a lump sum at retirement was totally eliminated. It was up to 7% matching funds. I made a killing on the interest alone early on: first year 16%, second year 12%, third year 9%. I made like 16,000 dollars for those 3 years.
Now the average American worker is little more than a slave. Americans employed in Industry in 75 was around 26.5%, now it is around 10%. This ain’t going to work.
I think IBM cheated the employees on pensions as did other companies leaving retirees no money. GM union workers were protected while the white collar had their money stolen.
I think when congress gets the chance they will stop giving COLAs to military retirees. It’s a matter of time.
“My biggest mistake IMHO was to agree to an annuity. “
I just moved money into an annuity for a monthly disbursement. I didn’t know what to do with the money so I spoke with an advisor and he said put it into an annuity until I am 67. (I’m 63 and not yet retired)
What are some other options?
Bkmk
“But now... gubmint employees demand big honkin’ paychecks AS WELL AS gold plated fringe benefits”.
As a retired County employee, I often feel guilty in having accepted a generous government pension for the last 24 years.
At least I wasn’t forced to join a Florida government union.
Of course, it could have been much worse. ‘Heard of Countys’ “Drop Programs”?
This is why defined benefit pensions are generally only found in two types of jobs: (1) government, (2) industries that exist through some type of corporate-government fascism.
You obviously don’t work in the same place I work……
RLTW
Basically, if you work for government - you are fully protected with life-long pensions and excellent health care.
I remember a time when if you worked for the gubmint you accepted a lower salary with the understanding that your fringe bennies would sort of make up for it. (Socialism in other words.)
But now... gubmint employees demand big honkin’ paychecks AS WELL AS gold plated fringe benefits.
You are late to the party. The defined benefit pension pan for Fed employees, CSRS, was phased out in the 1980’s and replaced by a mostly defined contribution plan, FERS and TSP. Local and State government employees still have defined benefit plans and great benefits in most cases.
I remember my father telling me when he got out of college in the late 1950’s he went to work for a company. He took the position at a little lower salary because they had a great retirement plan. After working there a few years and asking around he found out that yes they had a great plan but it seems nobody ever made it to retirement. They all seemed to be let go about 5 years before they were eligible. Needless to say, he left the company a year later.
I’m a lousy financial advisor, but here’s some:
1. Become debt free, that really allows flexibility, I retired at 56 because of that.
2. If you’re already comfortable with what you’re going to have for retirement (pensions, etc.), spend it, enjoy life, you’re not guaranteed tomorrow. I was healthy at 63, now at 69 I’ve had cancer, surgery, and seeing all kinds of specialists. But I don’t need sympathy, God has been good to me, my point is enjoy life while you can.
3. If you’re frugal, consider buying the best (or near) instead of the most economical. I made that change about a year ago.
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