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Most Defined Benefit plans are now defined contribution plans, mainly because so few nowadays will stay with one employer long enough for a defined benefit plan to benefit the employer or the employee.
Even at the peak of pensions though, less than 1/3 of private companies had pensions - not as prevalent as many seem to think.
Still 15% of private companies have defined benefit plans. Fed and Military pensions have drastically changed over time. They are still there; but, not the same as they once were.
Most large companies did. Most private companies are small, but I knew several people that received pensions from companies that had less than 1000 employees.
Maybe I should have put it differently because not about many small companies, otherwise would be significantly lower percent of businesses with pensions. Most businesses are 100 or less employees and very very few companies with less than 100 have pensions. The data is that less than 1/3 of the total of private company workers had private pensions (32% from SS data) vs 15% today.
Still 15% of private companies have defined benefit plans. Fed and Military pensions have drastically changed over time. They are still there; but, not the same as they once were.
Federal pension last changed in 1987 - from CSRS to FERS - estimates are that maybe as few as 1% are under the old CSRS pensions that are not already retired. My DW was under FERS with 23 years of service, retiring about 4 years ago and I had many coworkers that were CSRS so know more than a bit about both programs I wouldn't call a change made over 35 years ago recent especially since it applies to almost all currently working there.
Military pension changed about 5 years ago but is now more advantageous if do not stay to 20+ years. Before anything less than 20 years got you almost nothing. Today you get up to 5% of salary is paid by the government into a 401K like system (TSP) that goes with you. And when you retire, a lump sum option. Still better than most other pensions and much better if you don't stay. Every current retiree is under the old system.
But really not the point, the point is that pensions are available.
Jena, thanks for the link; bless to stay home with ours, volunteering with the schools they attended. Did return to work when they were teenagers, glad I did have a part-time job as a file clerk, husband permanently disabled the next year.
1988 ? went to night school to learn to use a computer, remember floppy discs ?
So, my mother and I are both "boomers"? This makes no sense at all.
Conclusion: These categories are only partially helpful. Please keep this in mind when you use the word boomer.
IMHO, it is just another way to separate us and create more prejudice.
You are an X'er like me and you mom is a Silent. Boomers are just another group that is very similar to you are your mom as a whole. It is just some age and means very little really. Some people get all excited about putting down boomers, but they are a hard working great generation like you and your mom's era, but YMMV for sure as all generations have hard workers and lazy people. It is all silly really.
Federal pension last changed in 1987 - from CSRS to FERS - estimates are that maybe as few as 1% are under the old CSRS pensions that are not already retired. My DW was under FERS with 23 years of service, retiring about 4 years ago and I had many coworkers that were CSRS so know more than a bit about both programs I wouldn't call a change made over 35 years ago recent especially since it applies to almost all currently working there.
Military pension changed about 5 years ago but is now more advantageous if do not stay to 20+ years. Before anything less than 20 years got you almost nothing. Today you get up to 5% of salary is paid by the government into a 401K like system (TSP) that goes with you. And when you retire, a lump sum option. Still better than most other pensions and much better if you don't stay. Every current retiree is under the old system.
But really not the point, the point is that pensions are available.
I did not say recent. I said over time. There are still people working under the old system. There were also changes to the Feds in the relatively recent past (post 2010). The point is that the government pensions keep getting worse. At the State level where I live there are several 'tiers' all working currently (some with drastically better pension benefits).
15% of Private sector employees have defined benefit pensions as well.
Still 15% of private companies have defined benefit plans. Fed and Military pensions have drastically changed over time. They are still there; but, not the same as they once were.
I really doubt this.
I’ve worked at around ten private companies. These were big organizations, one with over 150,000, most others well over 10,000. Only one offered a pension plan.
Other than a grocery store chain, the local hospital system is the biggest employer in my area. They were putting more contingencies on even their 401k matching, and that match is was contingent every year on “system performance.”
The point is that the government pensions keep getting worse. At the State level where I live there are several 'tiers' all working currently (some with drastically better pension benefits).
Introducing new tiers is essential to guaranteeing that the money will be there to fund the pensions going forward. Each new tier is only applied to future hires, so they will never miss what they didn't have. They have the choice to take the job or not, based on the current package offered.
I was NY Tier 4 (unlimited boosting of pension through overtime), and lost nothing when Tiers 5 (10% boost limit) and 6 (no boosting) were introduced.
I’ve worked at around ten private companies. These were big organizations, one with over 150,000, most others well over 10,000. Only one offered a pension plan.
Other than a grocery store chain, the local hospital system is the biggest employer in my area. They were putting more contingencies on even their 401k matching, and that match is was contingent every year on “system performance.”
According to this the 15% number is correct as of 2022.
My theory, which is linked to some other stuff, is that companies look at their turnover and see that much of their workforce doesn't stay long enough to vest so they just say, "why bother" to set up a defined benefit plan.
The State of Maryland increased the vesting time for teachers in the State Retirement System from five to ten years several years ago. The reason, once you got through the bloviating, was that a lot of teachers were leaving between years six and ten and had a vested pension. They also raised the employee contribution from 5% to 7% with the additional 2% going to the General Fund and not the pension system. Privately it was called the "Teacher Tax".
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