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If you're promising someone something in the future (pension) for work that they're going to do now, then you should fund that. If your salary included a big bo
by bko 9y ago
If you're promising someone something in the future (pension) for work that they're going to do now, then you should fund that. If your salary included a big bonus or deferred benefits, would you mind that your manager doesn't set aside any money for that promised benefit?
- sethev 9y agoIt's the indefinite funding of a fixed obligation that seems weird to me. If my manager said, "I'm sorry I can't pay your $5000 bonus next year because we don't have $111,000 set aside in a fund earning 4.5% in perpetuity" i'd be a lot more upset. Honestly there's probably something about the accounting that I don't understand.
- closeparen 9y agoPension is not bonus. You don’t get to modulate the amount depending on how generous you’re feeling in a given year. Workers have as much right to it as to the wages they’ve earned and saved into a 401k or IRA. It’s the enployee’s money; the employer is just a steward. Failing to pay a pension is the same as robbing a former employee’s house to take back the wages you’be already paid them.
- ghthor 9y agoI'd never take a pension over a 401k. I'd much rather be able to pick some of the investments my retirement is funding/being funded by then none. Seems crazy to me not researching and picking the investments, but maybe I'm bias by my understanding and intelligence versus the average American.