Why Switching Public Employees to a 401(k) is a Terrible Idea

Reform has been the hot topic in the world of public employee retirement plans for years. Too often the conversation immediately turns to tossing out defined benefit pensions for government workers and replacing them with individual investment accounts like 401(k)s. Supporters of the 401(k) approach say these plans are a better fit for the modern worker; they are always fully funded; they give workers control over their own money; the public sector should follow the private sector's lead in eliminating pension plans. However, this thinking does not consider the uniqueness of public sector jobs, workers' lack of understanding of financial products, the impact on workers' retirement security, or the effect on the employer and taxpayers.

Tagged Retirement, Retire, Value of pensions, 401(k), Crisis, Defending Pensions, Credit, Defined Benefit, Defined Contribution, National Institute on Retirement Security

It’s Official: The U.S. Retirement Crisis is Real

Tagged 401(k), Crisis, Employers, Members, National Institute on Retirement Security, pensions, Prospective Members, reitrement, Retirees, State Retirement Savings Plans

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