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The popular marketing reason why the pension disappeared is the factory closed. The real reason the pension disappeared is the proposed vesting duration was ri
by VLM 9y ago
The popular marketing reason why the pension disappeared is the factory closed.
The real reason the pension disappeared is the proposed vesting duration was ridiculous. I am older so current jobs have no pension of course, but when I worked jobs with pensions, the vesting duration was typically something like 3 to 5 years for 100% vesting, sometimes only 2 years for 50% vesting. In fact I have a pension from a previous employer projected to be worth $800/month which by then will be about the price of one cup of starbucks coffee...
To make it crystal clear, the pension was eliminated when the vesting duration was moved from perhaps 4 years to 30+ years.
- rwmj 9y agoThanks for replying. I found an article about "vesting duration" for US pensions, and if I'm understanding correctly this means that after you leave the job for <N> years, the pension you are entitled to drops to half and (after more years) completely disappears. This seems incredible to me! Surely this would mean that younger workers who work for a company even for a long time but then leave would never collect a pension from that company?
- VLM 9y agoThe investopedia probably explains it better than I can https://www.investopedia.com/terms/v/vesting.asp https://www.investopedia.com/terms/v/vesting.asp https://www.investopedia.com/partner/investopedia/articles/retirement/112916/pension-vesting-everything-you-need-know.asp https://www.investopedia.com/partner/investopedia/articles/r... More like if you work somewhere for enough years, you'll the golden handcuffs of extra bonus, or the flip side if you quit each job after two years you get nothing.