THE WASHINGTON TIMES
Articles by THE WASHINGTON TIMES
Inside the Story
Audio of today's show available soon. Published May 28, 2008
Pensions pay off
In the private sector, there has been a pension revolution during the past 20 years. Generous, company-financed, "defined-benefit" pension plans have been replaced by 401(k) retirement plans, which require employees to finance their own pensions through "defined contributions." Because health costs have skyrocketed in recent decades, most private companies have also drastically curtailed the availability of health benefits for their retired employees both before and after the ex-workers become eligible for Medicare at the age of 65. One big reason the Big Three auto companies — General Motors, Ford and Chrysler — face such difficult long-term financial problems can be traced to the pension and health-care benefits for their retirees, many of whom begin collecting their benefits in their early fifties. Published April 13, 2008
