Back by Popular Demand: How Retirement Benefits for Government Workers Help Everyone

Above: 2016 annual benefits paid to LAGERS' benefit recipients in Missouri.

 This post was originally published in November, 2017. For more information on how pensions benefit everyone, go to showmesecurity.molagers.org

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DOWNLOAD: LAGERS 2017 Economic Impact Report

Employee benefits are often thought to be for the betterment of one and only one group - the employees. Rather than simply providing a salary, employers use benefits like health insurance, retirement plans, and paid vacation to build morale, keep good workers, and to attract new workers. For these reasons, it makes sense to think that compensation other than salary are good for the employees and only the employees. But there is more to it than that.

A publicly-held company must make decisions that will positively affect the bottom line so the shareholders may profit. Likewise, government leaders serve the taxpayers and make decisions to enhance the prosperity of their communities. Decisions about employee benefits, therefore, cannot only be valuable to the employee, but also must make sense for the shareholder or taxpayer. In other words, all stakeholders must get some return on the investment for employee benefits.

Tagged Defending Pensions, Defined Benefit, Economic Impact, pensions, Value of pensions, Taxpayers

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

GOT ETHICS?

“I think ethics is the most exciting topic in the world to talk about,” said no one ever.


 

I know people who actually cringe when they discover a seminar or conference they will be attending has a session on ethics. Some professions require training in ethics—for example, those of us with a CPA license must obtain a whopping two hours of ethics training per year. (Thank you Enron, Arthur Anderson, etc…)

Tagged compliance, Defending Pensions, Defined Benefit, Getting it Right, Members, pensions, Retirement, retirement planning, Retirement Security, Secure, secure retirement, Security, Strategy, Goals, ethics

How to Talk About Your Pension at Deer Camp

The day before the 2016 firearms season at my deer camp in Cole County, MO.

Deer camp is a Missouri tradition that is ages old. I have been hunting and hanging out at deer camps since I was a kid, and if there is one thing I have learned over the years (other than becoming pretty good at frying catfish) is that this that this setting is perfect for lively and opinionated conversation. 

Tagged Defending Pensions, Value of pensions, deer camp

How Retirement Benefits for Government Workers Help Everyone

Above: 2016 annual benefits paid to LAGERS' benefit recipients in Missouri.

 

DOWNLOAD: LAGERS 2017 Economic Impact Report

 

Employee benefits are often thought to be for the betterment of one and only one group - the employees. Rather than simply providing a salary, employers use benefits like health insurance, retirement plans, and paid vacation to build morale, keep good workers, and to attract new workers. For these reasons, it makes sense to think that compensation other than salary are good for the employees and only the employees. But there is more to it than that.

A publicly-held company must make decisions that will positively affect the bottom line so the shareholders may profit. Likewise, government leaders serve the taxpayers and make decisions to enhance the prosperity of their communities. Decisions about employee benefits, therefore, cannot only be valuable to the employee, but also must make sense for the shareholder or taxpayer. In other words, all stakeholders must get some return on the investment for employee benefits.

Tagged Defending Pensions, Defined Benefit, Economic Impact, pensions, Value of pensions, Taxpayers

Are You Planning to Work Until You Die?

 

 

The September 30th Washington Post article, The New Reality of Old Age in America, by Mary Jordan and Kevin Sullivan is an eye-opening look at the state of senior citizens in the United States. The main takeaway from this piece: the days of retiring after a career of work with a gold watch and secure lifetime income are over for many Americans. The new reality is one where Social Security is the primary source of income with a full or part-time job as a supplement, forcing individuals to live out their remaining days near the poverty line.

Tagged Defending Pensions, 401(k), pensions, three legged stool

There are still some people out there fighting for pensions

 

Photo by Ryan Tang on Unsplash

Tagged Defending Pensions, Employers, Members, pensions, Retirees, NPPC

Response to Forbes Opinion: 401(k)s Are Not the Solution

Tagged Defending Pensions, Defined Benefit, 401(k), Defined Contribution, Employers, Members, Prospective Members, Retirees, Savings

How Should You Talk About Your LAGERS Benefits to Your Friends and Family? Here are Five Tips for a Positive Pension Chat.

Image of big family sitting at festive table and eating salad and roasted turkey

Tagged Defending Pensions, Defined Benefit, Members, Retirees, Value of pensions

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