[ Post a Response | The Liberal Party Discussion Board ]
Posted by Greg K. Most companies now have 401(k) plans. Employees take out what they, and their employers, have contributed plus any gains (or minus losses, which is HIGHLY unlikely over several years). Defined benefit plans are unfunded liabilities which has bankrupted companies and resulted in loss of employment (remember steel companies). Social Security, by the way, is a defined benefit plan. Only fools -- or financial illiterates -- think defined benefit plans are prudent retirement systems. You cannot create liabilities by guaranteeing unforseen future benefits without any prudent plan to fund these liabilities. Furthermore, these unfunded liabilities should be published so citizens know what they, their children and their children's children will be responsible for paying off in coming years. Any ideas?
on November 6, 2005, 1:22 pm
68.173.175.84
So, Rep. Bernie Sanders (I-VT) wants to make it compulsory for companies to provide defined benefit pension plans to workers over the age of 40. In essence, he is forcing private enterprise to become/remain mini-welfare states.
Message Thread:
« Back to thread