Whats the difference between 401k plans and defined benefit (pension) plans?
· 401k plans are controlled by big Wall Street investors · 401k plans don’t guarantee the money will be there when we retire · 401k plans lost as much as half their value during the recession, and many Americans have been unable to retire or don’t have enough to live on · With defined benefit plans, we know the money will be there when we retire · Defined benefit plans have lost value, but as people pay into them they will recover · Defined benefit plans like CalPERS have real public oversight, unlike 401k plans controlled by Wall Street If new public employees are moved onto 401k-type plans, that will increase the pressure on the few workers who still have pensions. Our pensions will be next. What is Jerry Brown’s position on retirement? While Jerry Brown has talked about the need to negotiate with state workers over retirement changes, here’s what he has said: · Jerry Brown would not privatize public workers’ pensions · Defined benefit plans still make sense for California · Any reti
