The percentage of workers covered by a defined benefit pension that pays a lifetime annuity, often based on years of service and average salary in later years, the kind that Beacon Journal retirees receive, has gone from 38% in 1980 to 20% in 2008.
Experts expect most companies to phase out defined benefit pensions within the decade. Companies pay a fixed dollar amount monthly and hope their profits and investments cover the costs.
The percentage of workers covered by a defined contribution pension -- often subsidized by employers but owned and controlled by employees—has increased from 8% in 1980 to 31% percent in 2008.
Employees take the risk that the value of their pensions will go up or down depending on how their investments do.
Part of the blame: Employers get better tax breaks and fewer restrictions with defined contribution pensions.
Companies with defined benefit pensions are phasing them out for current employees.
Click on the next line to read the detailed Social Security Administration report with tons of charts and graphs.
http://www.ssa.gov/policy/docs/ssb/v69n3/v69n3p1.html
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