mickeyd
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Interesting new blending of two retirement plans.
the-dbk-pension-of-the-future.html: Personal Finance News from Yahoo! FinanceThe DB(k) melds a 401(k) savings plan with a small guaranteed income stream. “You take the best of the defined benefit concept and put it together with a 401(k) plan,” says Lynn Dudley, senior vice president for policy with the American Benefits Council. The key elements of the plan:
- A defined benefit equal to 1% of final average pay for each year of the employee’s service, up to 20 years. An automatic enrollment feature for the 401(k) portion. Unless an employee specifically opts out or changes the contribution level, 4% of pay is automatically shunted into 401(k) savings.
- An employer match of at least 50% of employee 401(k) contributions, with a maximum required match of 2% of pay.