Quote:
Originally posted by sebastian_dangerfield
I don't understand why anyone gets a pension in the first place (other than those to which they contribute, which I do understand). Why should anyone get paid again for work they've already gotten paid for? Goofy idea past its time.
Why do govt workers get a pension after 25 years of service? Aren't we trying to move the retirment age UP? WTF?
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Most pensions came about, I believe, because the unions realized their members couldn't or wouldn't save for retirement, so they forced the companies to do it for them. The trade off was lower up-front salaries for the employees.
The transition to 401(k)s has come about b/c the companies got sick of funding the pension plans and have found that people will, indeed, save money if they are given enough incentive.
And regarding the retirement age thing, it seems you don't understand how pensions work. Being vested after 25 years of service doesn't mean you can start drawing after that time. Most plans have a minimum retirement age before you can get your money out.
