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To: Thorium90

Fewer and fewer government workers have pensions these days. 401(k) and 503(b) plans are becoming the norm for younger government workers.


23 posted on 08/05/2024 3:54:19 AM PDT by Alberta's Child (“Ain't it funny how the night moves … when you just don't seem to have as much to lose.”)
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To: Alberta's Child
Fewer and fewer government workers have pensions these days. 401(k) and 503(b) plans are becoming the norm for younger government workers.

Indeed - my particular of flavor of dot-gov went from a gold plated pension in which people were retiring in their mid-50s with a pension that nearly equalled their wages, then contracted as employees in their old positions for 10 more years, basically double-dipping.

That pension plan was no longer offered starting in 1996, replaced by a 'defined contribution' plan in 96, the plan under which I work. Not to be outdone, our "corporate" president decided, around 2015, to stop giving a pension to any new employees going forward, while enhancing the company contribution to the 401K program. Those of us in the plan were encouraged to leave, but not required to do so. The contribution to our formerly agreed-upon pension plan was cut in half with some slight increase in the company matching given to the 401K plan.

Now, how do you get an employee to commit to stay on for decades when there's nothing tying them to a long term commitment? The answer is, you don't.

That said, this market volatility (government induced) isn't going to bode well for any of us that have put away a substantial nest egg for our own future retirement.

56 posted on 08/05/2024 5:14:18 AM PDT by meyer ("When, in the course of human events,....")
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