Posted on 09/25/2010 5:32:48 AM PDT by Libloather
Workers resist ND switch from pension to 401K
Posted in: Valley News Live Facebook,
By the AP
Sep 22, 2010 - 6:03:30 AM
BISMARCK, N.D. (AP) _ Spokesmen for North Dakota school teachers and government workers are resisting proposals to put new employees into a 401(k)-style retirement savings plan. Both teachers and government workers now have pension plans with guaranteed retirement benefits. The pension funds are in financial trouble and North Dakota lawmakers are looking for solutions.
A legislative committee is considering proposals to ease the state out of the pension business and put new workers into 401(k) type plans that they would control. Analysts say that idea would worsen the problems of the existing pension funds.
Greg Burns of the North Dakota Education Association says the "defined contribution'' plans are tougher to maintain because workers have to make the investment decisions.
Stuart Savelkoul is director of the North Dakota Public Employees Association. He says converting to 401(k) style plans would be expensive and benefits wouldn't be as good for public employees.
After a few elections go by, it may not be a choice, Sherlock.
I am betting that the administrators and higher level govt employees will keep their government pension.
Most of this reducing govt pension talk never focuses on the people who cost taxpayers more money....administrators, executive level workers, politicians, and the like.
To reduce govt spending, we need just to cut spending, and not engage in class warfare
I am betting that the administrators and higher level govt employees will keep their government pension.
Most of this reducing govt pension talk never focuses on the people who cost taxpayers more money....administrators, executive level workers, politicians, and the like.
To reduce govt spending, we need just to cut spending, and not engage in class warfare
I expect that the gubmint is going to come after 401K's in the not too distant future. There simply is no way the Bawney Fwanks of the Congress are going to leave that much money lying around.....
We give you nothing, but allow you live.
I know, it's overly generous, but consider it.
You have until November to decide.
As long as this applies to NEW employees, I don’t have a problem. They can either sign a contract or work somewhere else.
But some states are now cutting the amount of pensions for current employees they guaranteed in good times. That is hitting someone in my family who is not greedy, just wanting to get what the contract promised years ago.
Time for obama to bail the states out on this one, too. After he completely takes care of the UAW and SEIU, of course.
Asset allocation of 401 or IRA, low risk tolerance: 30% long Term (5yr) CD 50% Good Balanced Fund such as Vanguard or Fidelity Balanced funds (60% Equities, 40% bonds and cash) 10% lg cap growth stock fund 10% low price stock fund (Fidelity). Fund each class faithfully, have all dividends reinvested and watch it grow.
Kinda like Sosha Security?
The Federal Government did this more than 20 years ago. All new employees were under a three tier plan: small defined benefit, 403B, and Social Security. Those there had the option to switch to the new system, few did, but it will reduce government outlays in the future.
Now, here is the rub...during the runaway markets of the late 90s, many employees who chose the most aggressive funds for their 403s and contributed the maximum to them plus received matching funds, were millionaires on paper so much so the Congress considered trying to reign in THEIR MONEY. Sounds familiar? That is what the current Congress is considering doing to all 401s, 403s and IRAs now. “we got to get our hands on all that money we let them keep or acquire” has always been the attitude of the tax and spend Government. The only way to make government fiscally responsible is to cut it down in size, remove the extraneous from its designated powers, and set up term limits to get the bums out from jobs they have Gerrymandered to excess.
That's the point. No more nursing at the public teat after retirement. Right now their pensions are insulated from any liberal mistakes they vote for. I've been preaching conversion of public service pensions to 401Ks for years, with the realistic proviso that it would only apply to the newbies. Not immediate relief, but a start. (i.e. Imagine if we had converted 20 years ago.) The current crew can/will have their pensions shaved by reality.
They will throw new workers under the bus and the new workers will dump the unions hopefully.
You still HAVE to watch these things like a hawk. There will never be a substitute for that effort, if you want to retire comfortably.
Had a portfolio of my design been in place before 9/09, today’s value would be perhaps 8-10% below it’s highest value.
I personally have a;ways been perfectly satisfied with a return of 8%, something very easy to realize by investing conservatively. The way it works is the less upside potential you have by investing conservatively, the less downside potential you have when the sh*t hits the fan.
L
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