From the link that Gary sent:
"Each employee does not have a separate account in these programs, as the money to support the pensions is generally administered through a trust established by the employer. In a defined contribution plan the employer makes regular deposits into an account established for each employee. The employee is not guaranteed to receive a given amount during retirement but only the amount in the account."
Remember that Social Security was supposed to go to an independent trust company but for some reason the Government still has control of it? I feel this is the same with my companies pension. I am in the Telecom industry, which has been hurting for some time now. OVer the last 5 years, MANY changes have happened. Those employees that have less than 20 yrs of service lost all medical coverage after retirement.(this was for management only) I only have 8 years of service, just a young un. I am right now accruing a pension, but I am not counting on that being there, since the company has tapped it just like the Government has tapped Social Security.
I guess as someone who is younger, with a long time left until retirement, I am being pessimistic (or realistic) and saying it won't be there for me when I am older. I can foresee the need to tap into it many times until it's gone dry. What keeps a company paying into it? Can't they just stop if they wish?
"Each employee does not have a separate account in these programs, as the money to support the pensions is generally administered through a trust established by the employer. In a defined contribution plan the employer makes regular deposits into an account established for each employee. The employee is not guaranteed to receive a given amount during retirement but only the amount in the account."
Remember that Social Security was supposed to go to an independent trust company but for some reason the Government still has control of it? I feel this is the same with my companies pension. I am in the Telecom industry, which has been hurting for some time now. OVer the last 5 years, MANY changes have happened. Those employees that have less than 20 yrs of service lost all medical coverage after retirement.(this was for management only) I only have 8 years of service, just a young un. I am right now accruing a pension, but I am not counting on that being there, since the company has tapped it just like the Government has tapped Social Security.
I guess as someone who is younger, with a long time left until retirement, I am being pessimistic (or realistic) and saying it won't be there for me when I am older. I can foresee the need to tap into it many times until it's gone dry. What keeps a company paying into it? Can't they just stop if they wish?