August 25, 2006

The Trend Away from Traditional Pensions

Filed under: Business Moves, Soc. Sec. & Retirement, Taxes & Government — TBlumer @ 7:57 am

An Ohio Society of CPAs newsletter tells me that according to The Wall Street Journal, the number of defined benefit plans offered by employers has decreased to 30,000 from 112,000 in 1985. Combined, the remaining pension plans are estimated to be in the hole by $450 billion.

If the pension reform recently signed into law closes this gap, and prevents employer mismanagement from creating new gaps, it will be a significant accomplishment.

2 Comments

  1. The problem with traditional pensions is employer/employee mobility.

    Mobility is a good thing for a dynamic economy, unfortunately in most cases, you can’t take your pension with you.

    I’d rather have the money than the promise and I’m not the only one.

    Comment by Dave — August 25, 2006 @ 9:34 pm

  2. I would agree with that, as I would think any twenty-something today who’s watching what is happening would.

    Comment by TBlumer — August 26, 2006 @ 10:27 am

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