The company I retired from just gave notice that it will eliminate the defined non-contributory pension as of 12/31/2005.
No big deal to me, as I will continue to draw my pension, but a big deal for my wife and son, who continue to work for the company.
The pensions that they have earned to date will be frozen; they can begin to receive the "frozen" pensions at age 55 or later if they prefer. By frozen, I mean they will never grow after 12/31/2005. In other words, a pension that is currently worth $400/month now, will be worth $400 a month 10 years from now, etc.
The pension will be replaced by additional contributions to the 401k plan.
Employees will have money put into the 401k anywhere from 5 to 15 percent of their salary based on age and years of service.
So,,, my questions is:.
What does everyone think about this,,,good or bad,,, good or bad for whom?
No big deal to me, as I will continue to draw my pension, but a big deal for my wife and son, who continue to work for the company.
The pensions that they have earned to date will be frozen; they can begin to receive the "frozen" pensions at age 55 or later if they prefer. By frozen, I mean they will never grow after 12/31/2005. In other words, a pension that is currently worth $400/month now, will be worth $400 a month 10 years from now, etc.
The pension will be replaced by additional contributions to the 401k plan.
Employees will have money put into the 401k anywhere from 5 to 15 percent of their salary based on age and years of service.
So,,, my questions is:.
What does everyone think about this,,,good or bad,,, good or bad for whom?