DuPont's traditional pension plan to end

[fencesitter]

http://www.philly.com/mld/inquirer/15384656.htm

It is the latest U.S. firm to get rid of its defined-benefit plan for 401(k)s. It will also end, for new hires, a subsidy for retiree health-care insurance.

DuPont Co., which for decades has been known for generous employee benefits, said yesterday that it would close its traditional pension plan to workers hired after Jan. 1 and sharply reduce contributions to the old-style plan for current employees.

[MaineDem]

1. It appears there's no union contract to negotiate

Too bad.

[MrModerate]

2. It all comes down to health care . . .

If retiree health care was not such a huge unknown (but under the current circumstances, just about guaranteed to sink even major firms), these companies could continue defined-benefit plans.

My company's 401(k) -- which has been in place for over 20 years -- is doing OK and on the whole I think I'm better off without a defined-benefit plan. Presuming that there isn't a stock market crash wiping out all its value and that health care costs are somehow mitigated (starting, for me, about 15 years from now) so that the entire balance doesn't go to paying for health care.

The health care system will crash fairly soon, I'm convinced, and some other system (more rational or less, who knows) will replace it. If progressives are in power, there's a chance we can move toward a universal healthcare system which -- despite its shortcomings -- would be preferable to bankrupting the entire country.

[Double T]

3. Between the greed by wall street and its investors.........

and the money grab by the ENTIRE health care system, the American worker's retirement and quality of life will be lean and mean.

[maddezmom]

4. duplicate topic

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=2479649