Federal Employees

[nutz]

Good to know - didn't know that. But it does sound like outside of government work and union jobs, pensions are kind of a lost thing.

401K's seem to rule the land now, and they are fairly portable. Even with profit sharing it's damn difficult to keep anyone who thinks they have been slighted.

 

[philibusters]

Good to know - didn't know that. But it does sound like outside of government work and union jobs, pensions are kind of a lost thing.

Which from a worker's standpoint is a bad thing. 401ks can replace a pension if somebody starts contributing in their 20's and contributes 10% of their salary until they retire. The problem is only 10% of the population probably does that.

Even the federal gov't pension which is good is not as generous as some media pundits make it out to be. I am under FERS which uses a 1.1% multiplier so 30 years = 33$ 35 years =38.5% and 40 years = 44% of your salary for example. I'll likely retire with around 36 years of gov't service so my pension will be in the ball park of 40% of my salary. Social security may make up another 20% or so of my salary so that means I would have 60% replacement. The rest will have to come through my IRA and TSP. I have around 25 years before I can retire so I am not too worried about these things, but they are good things to be aware of.

 

[Clem72]

Which from a worker's standpoint is a bad thing. 401ks can replace a pension if somebody starts contributing in their 20's and contributes 10% of their salary until they retire.

You forgot they also must pray like hell that the market doesn't tank right before they plan to retire (they ain't getting 10% in the G fund). And even if you do everything correct, and transition to more conservative funds the closer you get to retirement, you can still get hosed with a 5+ year market slump. And of course the feds are looking to slash the amount paid to the G fund. Not sure how they could justify that when it's tied to the federal bond rate (hey, we will sell you bonds but only give you half the earnings. Good luck with your 0.5% interest vs the 3% inflation).

 

[Chris0nllyn]

I'd double check that one.

Coca-Cola Co., Atlanta, plans to make $106 million in contributions to its pension plans in 2017, the company disclosed in its 10-K filing with the Securities and Exchange Commission.

Coca-Cola Co. contributed $718 million to the pension funds in 2016.

While the company did not break down U.S. vs. non-U.S. assets, the Feb. 24 filing did say that the primary U.S. pension plan, which covers non-union employees, had about $4.9 billion in assets and $5.75 billion in projected benefit obligations as of that same date, for a funding ratio of 85.2%.

http://www.pionline.com/article/201...ith-106-million-contribution-to-pension-funds

You forgot they also must pray like hell that the market doesn't tank right before they plan to retire (they ain't getting 10% in the G fund). And even if you do everything correct, and transition to more conservative funds the closer you get to retirement, you can still get hosed with a 5+ year market slump. And of course the feds are looking to slash the amount paid to the G fund. Not sure how they could justify that when it's tied to the federal bond rate (hey, we will sell you bonds but only give you half the earnings. Good luck with your 0.5% interest vs the 3% inflation).

Diversification is key. I've got a pretty aggressive 401k but am also using my HSA as a triple-tax-saving retirement account. Those, along with dividend payouts of company shares should be okay but I certainly agree. I remember what my parents "lost" in 2008.

 

[PeoplesElbow]

It's a different animal in the IT world.

Im not in IT.