Ford says pensions are a plan of the past
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Anonymous
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The only ones guaranteed them in this country are feds.
The split on "retirement security" isn't disputed by Ford, as its executives say they are not agreeing to a union demand to resume traditional pension plans for those hired since 2007. Ford CFO John Lawler called those defined benefit plans that pay a guaranteed monthly benefit until a retiree dies, "a plan of the past." |
Anonymous
| True that |
Anonymous
| He’s right. Not sure what Ford provides now, but there’s no reason they can’t provide a good defined contribution plan. |
Anonymous
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Feds haven’t had DB plans for years of new hires.
Only teachers, firemen/police, state workers and maybe very senior feds or legacy ones. And dont forget to juice it with disability pay the year after your retire. |
Anonymous
| I think they’re right. My company switched from pension to a 401k match years ago. |
Anonymous
FERS no longer exists? I thought they just changed the contribution amount to make younger workers contribute more? |
Anonymous
Never mind, yes there’s still a DB plan for new Feds. https://www.opm.gov/retirement-center/fers-information/ |
Anonymous
| I'm all for workers' rights, OP, but pensions are a thing of the past for sure. There are other ways of making working lives more safe and comfortable, and it starts with health, both physical and mental. We need to fix the dreadful healthcare costs in this country, offer workers way more paid leave for the sake of their mental health and have subsidized daycare so parents, especially mothers, can be more productive in their careers. |
Anonymous
| I'm a fed and very pro pension, but I see lots of young people complaining about Social Security and FERS deductions because they think they can invest it better (I am more comfortable knowing part of my portfolio is defined benefit with COLA, but I also max TSP). I think it's a shame that pensions have faded away but I don't think it's considered a big benefit anymore because it locks you into a job. |
Anonymous
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There are serious downsides to pensions attached to jobs. My spouse has a pension for their job and it's really limited choices we can make because once you hit the halfway point on earning the pension, it becomes financially hard to justify leaving that job. At this point, we'd lose close to over 700k in pension payments if my spouse changed jobs. And everyone else who works there is the same -- tons of people just counting down the years (or moths, or days) until they can retire with their full pension.
I mean, there are huge upsides to pensions too, but I don't think it's always the gift you think it is at first. I know my spouse would love to leave their job but we are not wealthy enough to justify it. |
Anonymous
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I think the era of golden parachutes is over.
Look, the facts are most Americans have not managed their 401ks well and we are heading into a period of unprecedented poverty for seniors. Student loan debt (their own and their kids’) and a lack of pensions are contributing to this. |
Anonymous
Those were not pensions. And trust that top execs will always have a golden parachute. |
Anonymous
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The Ford CEO, you don’t say
What a load of horse patootie. CEO and executive pay has ballooned since the 60s, yet there isn’t money for pensions. |
Anonymous
+1 |
Anonymous
Another +1. |