Tim Knowles
Sep 9, 2018 · 1 min read

A defined contribution pension program provides little or no incentive for the employee to stay with his employer. It was sometimes called a portable pension. Why would an employer or employee want such a scheme? Why not just pay the employee a higher salary? I guess in the U.S. it is a way around the cap on 401k contribution limits but few people max out their contributions to 401k’s.

The fear that some of us with vested pension benefits is the company going bust. Generally when a company goes bankrupt the pension obligations become the responsibility of the Pension Benefits Guarantee Program and it does not pay dollar for dollar unless your pension benefit is small.

Public Pensions are certainly a threat to municipalities and governments, meaning Tax Payers and citizens. Pension obligations are causing cuts to services and tax increases in my locales. Some people blame Unions but really we are all to blame, we allowed our leaders to make unreasonable promises in exchange for votes.

TEK

    Tim Knowles

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    Worked in our nations space programs for more than 35 years