Quote:
Originally Posted by tophcfa
Freezing a pension plan doesen't relieve a company of the obligation to pay pensioners all retirement benefits earned up to the freeze date. It simply eliminates accural of additional plan benefits from the freeze date going forward. My companies plan was frozen three years before I retired. I worked there for 25 years but only earned pension benefits for the first 22 years. I feel very fortunate to have worked for a company that still had a defined benefit plan in place for most of my career. Unfortunately, Defined benefit plans (at least for private companies) will soon to go the way of the dinosaur. A companies success or failure should be based on their ability to compete in the businesses it specializes in. Taking on huge liabilities that fluctuate with market returns is not consistent with sound business practices. I guess that is why many public entities still have defined benefit plans, since they can put taxpayer money at risk as opposed to shareholders.
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My story is very similar. Pensions froze after I was there for 24 years. I chose to see it as an opportunity. I was no longer held there by the "golden handcuffs". I left and took a job at a company that eliminated pensions several years before. Never looked back. Four years later - retirement.
Pensions are going away. Insurance benefits after retirement - gone. It's just how things are now.