Major Changes Raise Concerns on Pension Bill - New York Times

Major Changes Raise Concerns on Pension Bill - New York Times

I sincerely hope that Congress does not make hash out of the need to strengthen pension plan funding so that workers can receive promised befits. In the midst of the Congressional sausage-making, I'm not surprised that large companies like IBM and Verizon, with strong defined benefit pension plans, have opted to freeze those plans in the near future and substitute higher payment to defined contribution plans. By electing to limit defined benefit plans, I assume they will avoid paying higher premiums to the Pension Benefit Guaranty Corporation to support failed funds.

American workers should have some guarantee that retirement benefits/promises will be there when they need them if those funds are managed by their employers. I support self-directed pension plans like IRAs and 401(k)s. People should be in charge of their own future and their investment decisions whenever possible, but they need the financial knowledge or guidance and discipline to do so effectively.