So they can go to...all those other companies that are rolling out new DB plans?
Originally Posted by loggedout
A major incentive of working for a crown corporation or Gov. was/is the DB plan. Without it, many will seek to join the private sector.
Originally Posted by MoneyGal
@Logged Do you work for CP by any chance?
Where a defined, fully indexed, 100% matched, bridge benefit plan will be awaiting them with open arms.
Originally Posted by Guigz
Perhaps, these folks have been working there too long.
Time to step outside and smell the air.
I don't get why you are being sarcastic.
Obviously, the private sector is not offering DB pensions by the boat load. If you look at total compensation without the Gov. DB in the picture, things might be more favourable on the private sector side.
No, but for many, it's the only thing keeping them there - for now. The company is private now, having become a subsidiary of a large engineering and construction firm.
Originally Posted by MoneyGal
These people will go to the highest bidder for their services, or simply retire and become very expensive contractors. Only the ones without options will stay. In all other aspects besides the pension issue, the company isn't that attractive to be a salaried employee of, even in comparison to some other engineering companies without ANY pension plan. I started my career in engineering with such a company so I know both sides of the coin.
And no it's not CP.
There is a fair bit of resentment when it comes to public sector pensions as most of the private sector has been converting to DC if they had a DB.
Total compensation in any company without the DB likely would not be much better, that golden egg is just that.
Very few companies that don't offer pensions care about the issue.
I spent my work life in a profitable company that had a DB and retired, they no longer offer the DB and have converted to DC still better than not having a pension.
My DB does not hold a candle to the public sector pensions fully indexed, bridge, Guaranteed without risk.
I do wonder if the average public sector worker really understands the real value of their package.
What appears as sarcastic is simply the private sector chocked trying to figure out how they will retire knowing that no matter what it will be very hard to come close to having a guaranteed pension.
Last edited by Daniel A.; 2012-09-18 at 07:25 PM.
The resentment is understandable but my point was, in my company's case, that the DB pension is the only thing retaining staff dying to leave and with other options. This clearly implies that they understand the value of their DB pension. But when it's over, their other options which will likely not include DB plans or any pension plan at all, will become more enticing in comparison.
Last edited by loggedout; 2012-09-18 at 10:40 PM.
Agreed the private sector has now come down to wages and potential for advancement.
Loyalty from either side was lost years ago.
The work place has changed.
Funny thing that as people get down to the two years to go mark the big thing is coasting.
I would not put any pension in net worth you may not live to collect it.I use Investments ,cash on hand and equity in RE and I am very conservative with the estimates on my RE investments.
I don't really think that this is a good reason for not including it in your networth. You include cash in your networth, yet you could easily die prior to using it all up...
Originally Posted by marina628
In any case, most DB pensions have a minimum payout of 2-5 years of benefits to the heirs in case of death prior to collection. If you have a spouse, there are usually survivor benefits (usually 50% of the pension amount for as long as the spouse lives).