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Can you clarify what you’re referring to with defined benefit? I am really looking to make it so that companies don’t hold pensions hostage. I think they should
by blackeyeblitzar 2y ago
Can you clarify what you’re referring to with defined benefit? I am really looking to make it so that companies don’t hold pensions hostage. I think they should be putting money into some outside thing that is independently managed
- garciasn 2y agoThe retirement payment is based on the employee's work history, age, and earnings, rather than on investment returns.
- ghaff 2y agoRight. And there are some (fairly significant) protections these days. Learned recently that my pension which was farmed out to an outside benefits company at one point is now being farmed out to an insurance company TBD. I'm not especially concerned. The risk seems fairly low and I'm not really dependent. But this is the plus and minus of defined benefits versus something like a 401(k).
- Arainach 2y agoRetirement plans are defined benefit ("employee will be paid $X per time period during retirement") or defined contribution ("the company puts $Y per time period into this retirement vessel"). https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/fact-sheets/cash-balance-pension-plans https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/...