Verizon Communications announces it is overhauling its retirement benefits. The company said it will freeze its pension plan and restrict retiree health benefits for some 50,000 non-union employees. To replace its existing pension program, Verizon will offer a 401k retirement savings plan. [All Things Considered]
So the retirement program won't grow to the point a these employees were thinking it would, by the time of their retirement. And Verizon is making lots of money today -- but it's re-positioning to compete with Google, cable companies, etc. -- and acquire MCI that had no pension program. The 401K option is a match up to 6%. Sears, Fleet Boston and others have recently decided to stop expanding traditional "defined benefit" pensions too.
No comments:
Post a Comment