clifp
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Oct 27, 2006
- Messages
- 7,733
hmmm...given that nearly half of all private sector employees were at one time covered by DB plans...
Fact March 1998 | EBRI
...I'm thinking that at one time over half of the US workers had a DB plan.
EBRI is basically lying. Currently 53% of Americans are employed by small business a number which has remained constant over the years. It is prohibitively expensive for a small business to set up a pension so they don't have one. More over as SamClem points out there is world of difference between working for organization that has a pension plan and actually having one. In theory everybody who has joined the military has defined benefit plan in practice only a small percentage last the 20 years to actually receive it.
Prior to Employment retirement security income act of 74, there were virtually no regulations about pension, 10 year vesting periods, in some cases if you left before age 65 you got no benefits, and the paternalistic companies (then as now were the exception not the rule) and lots of folks were fired right before vesting.
When the 1974 ERISA law was passed a committee studied retirement in they found that majority of Americans worked had no retirements plans (I forget the exact number but I think it was 65%)
Since I've joined the board, I've done a fair amount of research on the subject, and my best estimate is at no point in American history were more than 25-30% actually qualified to receive a pension