There’s no easy way to get around the fact that the switch from traditional pensions to 401(k)s meant a move from backloaded to evenly-accruing benefits.
Forbes Post, “Pension Plan 101: What Is Backloading And Why Does It Matter?”
There’s no easy way to get around the fact that the switch from traditional pensions to 401(k)s meant a move from backloaded to evenly-accruing benefits.
Thank you for your forthright analysis of the current pension problems. I feel that you have not brought enough attention to the role of the Federal Government in allowing companies and government entities to under fund their pension responsibilities as well as allowing reneging through bankruptcy. It is my fear that we are at a point where we will see a great increase in elder poverty due to the changes in pension policy.
Sincerely,
Chuck Hansen
Minnesota