401(k) Plans and DB Plans Reverse Themselves
According to the Employee Benefits Research Institute, there has been a approach 180 degree switch in the way employees get pensions since 1979. Out of all workers covered by a private-sector retirement plan both years:
1979: 62% covered by a defined-benefit pension; 16% in a 401(k)-style pension
2005: 63% of covered by a 401(k)-style pension; 10% in a defined-benefit pension
In both years, about one-quarter of workers were covered by a hybrid of both.
that simply adds to the mountain of goods that the defined benefit pension is dying (and good riddance). These plans, which require workers to lock themselves into jobs, hope the company keeps their promises, and compels them to live lengthy sufficient to gather, are in decline
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