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....Generally, employers who offer defined benefit pension plans offer less current compensation.
Maybe, but to a VERY limited extent--it isn't like the employee loses $1 in pay for every $1 that the company puts toward pensions, for several reasons. First, payroll costs a company the full amount of every paycheck, every time they cut a paycheck (actually more than 100%, due to the extra 7.65% they have to add to match the employee's Social Security & Medicare tax). This is the biggest cost most employers have, by far.
Next, there are BIG tax benefits for money the company puts towards pension costs, while for some insane reason the federal tax code maximizes the hit for employee salaries (though not executive compensation). This is a well-kept secret that I only recently became aware of, due to a relative attaining a responsible position in a corporation of about 14,000 employees.
Also, for pensions, the company pays only fraction of the estimated future employee benefit to the administrator of the pension plan (usually a 3rd party firm that pools contributions to get large investment returns). Even worst, most pension plans are under-funded, so the company doesn't even pay what it would take to cover the promised future benefit.
Pensions are, by far, the best financial protection anyone in the working class could have for their retirement years (assuming businesses are not allowed to underfund or nullify them, another area where our government has absolutely failed). It is a disaster for the nation that private sector pensions are pretty much gone as a result of the loss of Labor's bargaining power. However, extremely generous but grossly underfunded pensions are still standard for government employees--and the taxpayer is yet again on the hook for incredible future costs.
As to the argument that existing government pensions cannot be changed since they already exist, I must point out that the fully vested private-sector pensions of hundreds of thousands of people--my family among them--have been totally nullified through perfectly legal means, one of which is known as "change of control" (originally intended to wipe out pension obligations of bankrupt companies). Since government had no problem failing to protect the public in these situations, it certainly can fail to hand out retirement lotteries to future government retirees, considering that future taxpayers cannot even afford the current ridiculous level of taxation.
There is also that small print on the retirement paperwork showing a disclaimer, of sorts, that a defined pension amount listed for an individual may, under given circumstances, be less than the currently stated amount in the future. That same statement shows on the Social Security retirement sent to upcoming recipients as well. That provided both my husband and myself with motivation to save for our retirements when we were working even though we have defined pensions and currently get SS.
There is no 'disclaimer' like that in my defined benefit pension, I also have a guaranteed 2% COLA every year
Yes, it's great for Subsidy Kids who get to live cheaply (e.g. live with parents and get free/cheap room and board) but not so great for people paying market rents with student loan debt.
It has nothing with subsidy, you complained poor people can't save. I provided the link to help you. And you still complain. Geeez!
It has nothing with subsidy, you complained poor people can't save. I provided the link to help you. And you still complain. Geeez!
At a certain income level, the most basic needs can't be met. Even here in central Indiana, it's hard to survive on $10-$12/hr without lots of roommates or outside help. Just because this particular person is whiny doesn't render his argument completely invalid.
At a certain income level, the most basic needs can't be met. Even here in central Indiana, it's hard to survive on $10-$12/hr without lots of roommates or outside help. Just because this particular person is whiny doesn't render his argument completely invalid.
Why is it bad to have roommates? Are you supposed to not have roommates? My kids have roommates and she makes more than minimum wage. My sister used to rent a room from a family to live on a non minimum wage job. Nobody is entitled to anything. And that's how my sister was able to save a small amount of money, like 4% of her low income.
So that makes the argument invalid in my point of view. Live with what you can afford.
Why is it bad to have roommates? Are you supposed to not have roommates? My kids have roommates and she makes more than minimum wage. My sister used to rent a room from a family to live on a non minimum wage job. Nobody is entitled to anything. And that's how my sister was able to save a small amount of money, like 4% of her low income.
So that makes the argument invalid in my point of view. Live with what you can afford.
Because you are entitled to live better than your parents although you have no skills and they worked for 30 years developing theirs [@sarc]
There isn't and shouldn't be much of a safety net for able bodied adults. They can, and should, work as much as they need to in order to support themselves.
You see so many homeless because of mental illness and substance abuse.
MJ says I have committed financial suicide and thus can no longer improve my future.
Just my point why are you asking and listening to anonymous strangers in a forum who may not have a good respect or appreciation of your life circumstance? Linked below is perhaps a better choice of forums that might not only provide a kind eye to read your life thoughts etc but perhaps can provide you a better level of support. Folks here can be self centered and see things thru the prism of their life which in many cases is different than yours.
Happy surfing and may you find the path you are seeking. Best of luck!
Last edited by TuborgP; 01-03-2016 at 05:28 AM..
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