True. But you said they are not sustainable and that isn't true, 401k's are just cheaper for them to administer. But Companies right in Des Moines are making millions and almost billions by buying these Pension Funds. And they aren't stopping their purchase of them anytime soon.
John Deere strike imminent?
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True. But you said they are not sustainable and that isn't true, 401k's are just cheaper for them to administer. But Companies right in Des Moines are making millions and almost billions by buying these Pension Funds. And they aren't stopping their purchase of them anytime soon.
You can always find an outlier, but it's well documented that pensions are crippling cities, states and companies.
Employee retirement costs crippling cities
Costs that cities and towns have to pay for employee retirement benefits don’t get the same attention as pensions, but they typically cost twice as much — and bills are rising fast enou…
www.sentinelandenterprise.com
A $76,000 Monthly Pension: Why States and Cities Are Short on Cash (Published 2018)
Governments are struggling as mounting pension obligations crowd out the rest of their budgets. Oregon faces a severe, self-inflicted crisis.
Muni bond investors could lose out as pension crisis cripples many U.S. cities
Budget cuts, tax hikes among few options for cities struggling to fulfill pension promises.
www.marketwatch.com
Soaring pension costs still crippling Phoenix budget
More money is flowing into Phoenix city coffers than ever has before, but the city faces projections of deficits.
www.azcentral.com
As public pension costs soar, some Southern California agencies turn to controversial borrowing to fill deep holes
California’s cities and special districts are slated to pay $5 billion to fill outstanding holes in their pension plans in 2022, a jump of 43% over what they paid in 2019.
www.ocregister.com
The Coming Pension Crisis Is So Big That It's A Problem For Everyone
The pension funding gap is a problem for everyone. Almost all public pension funds assume investment returns somewhere around 7% (and some as high as 8%+). The most common solution to this problem so far has been cutting services in the hope no one notices. They can't delay the inevitable forever.
www.forbes.com
Already in trouble, corporate pension plans are doomed by low interest rates
General Electric, one of just 16 companies in the Fortune 500 with defined benefit pensions, is freezing its plan.
qz.com
The $66 billion question: How can we fix Pa.’s pension crisis?
You've heard all about the issues surrounding Pennsylvania's largest public pension funds. Now: How do we fix them?
I like 401ks because I have the control and know what is in my account is there and not being screwed with. Also, When I die, my kids will get something
But on a macro level, I also like pensions in that we as a society don't have to count on individuals to handle their retirement savings. There are a scary number of people over 60 with zero savings. We're going to end up paying for those people as they age beyond working years. So while there are a lot of people that have the ability to handle their own 401k, there are also a lot that can't or don't. So for them a pension is easier.
Pensions can also have a negative security aspect. My wife is a teacher and many of her coworkers feel IPERS will just take care of them when they hit rule of 88. So In their early 50s they go meet with the rep thinking at 55/56 they are in the rocking chair. They leave and their five years left becomes 10-15.
A significant issue in the future is going to be the elderly with no savings and no income. Pensions helped prevent that.
If someone was going to work in a job that gave them a pension, they are working at a job accumulating SS and a 401k or equivalent most likely. The idea that there are all these jobs out there that went from offering pensions to not offering an alternative retirement is simply not true and setting up a completely false choice. Anybody that in the current world is going to be elderly and have no income from SS and no savings from a retirement plan of some sort likely wasn't going to have a pension in the old world.
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I assume that is a 7 month probation period. Do they get a is a pay increase after that?What are the benefits like once they get them?
Any idea what someone makes after 5 years or 10 years?
Is there any option for IPERS people to get cheap health insurance between early retirement and Medicare? I just assumed when I see so many teachers working past their rule of 88 it was due to not being able to afford health insurance.
How do you figure that? Pensions are forced participation but 401ks are voluntary. There are pros and cons to both systems but I think the biggest difference is forcing people to do it with a pension. Personally I’m not as big of a fan of pensions because I’m financially literate enough to save but I worry about people like my brother who are not. I think he has gotten into the 401k system for his job after being pushed to by the rest of my family but if we weren’t doing that he probably wouldn’t have done so.
Sure there is social security right now but I don’t anticipate seeing much if any of it when I’m old enough.
This is not true. My experience was that you were automatically enrolled in the pension plan. You could then improve the pension by by contributing to it, but everyone got the company money. The 401k plans I have been enrolled in require the employee to enroll and contribute to get the company match. You must decide to save.
This matters when talking about the average hourly/manufacturing job. With a pension Ive seen many people retire at a decent age. Without a pension and relying on a 401 k I’ve seen many have worries of not enough money and little hope of retirement. They often don’t enroll or they save very little.
I don't know them all but I know it's like $25 a week for single insurance, 2 weeks vacation that you have to use during shutdown or a full week at a time if there isn't a shutdown, small pension, 401k, 3 personal days and the right to refuse something like 4 Saturdays a year if your department is working.
If the stock market and mutual funds aren't your thing, you can always find a credible financial planner to help you. My 401K allows me to move things around between funds. My financial planner tells me when to move things. It's worked well.
You can always find an outlier, but it's well documented that pensions are crippling cities, states and companies.
Employee retirement costs crippling cities
Costs that cities and towns have to pay for employee retirement benefits don’t get the same attention as pensions, but they typically cost twice as much — and bills are rising fast enou…A $76,000 Monthly Pension: Why States and Cities Are Short on Cash (Published 2018)
Governments are struggling as mounting pension obligations crowd out the rest of their budgets. Oregon faces a severe, self-inflicted crisis.www.nytimes.com
Muni bond investors could lose out as pension crisis cripples many U.S. cities
Budget cuts, tax hikes among few options for cities struggling to fulfill pension promises.Soaring pension costs still crippling Phoenix budget
More money is flowing into Phoenix city coffers than ever has before, but the city faces projections of deficits.www.azcentral.comAs public pension costs soar, some Southern California agencies turn to controversial borrowing to fill deep holes
California’s cities and special districts are slated to pay $5 billion to fill outstanding holes in their pension plans in 2022, a jump of 43% over what they paid in 2019.The Coming Pension Crisis Is So Big That It's A Problem For Everyone
The pension funding gap is a problem for everyone. Almost all public pension funds assume investment returns somewhere around 7% (and some as high as 8%+). The most common solution to this problem so far has been cutting services in the hope no one notices. They can't delay the inevitable forever.Already in trouble, corporate pension plans are doomed by low interest rates
General Electric, one of just 16 companies in the Fortune 500 with defined benefit pensions, is freezing its plan.The $66 billion question: How can we fix Pa.’s pension crisis?
You've heard all about the issues surrounding Pennsylvania's largest public pension funds. Now: How do we fix them?www.pennlive.com
It's not really an outlier. These 2 Des Moines companies are buying up a lot of those you've mentioned and are swimming in profits. Like I said it just has to be invested and hedged correctly.
And buying these Pensions is a very highly competitive process. So much so that when bidding on them there's maybe 10 - 20 people in a company of 1000 - 2000 that know about it until it is final.
I have both a small pension and a 401k with my job. The pension isn’t enough to cover retirement but I like knowing I’ll have a fixed amount along with my social security.
honestly more places might benefit from that system.
honestly more places might benefit from that system.
Not sure I know they can buy into the schools plans (this can quite often lead to higher premiums for the current employees at times). I know it did for my wife’s school for a while.
Australia has a mandatory savings program. Kind of like a forced 401k. Honestly I'm kind of for it at this point.
