If you have younger employees, a custom-designed defined-benefit plan will allow you to put away big bucks for yourself, and little for them.
Various studies by benefits consultant Hewitt Associates show that only 38% of U.S. employers plan to offer a defined-benefit plan by the end of 2006, compared to as many as 83% in 1990.
The 401(k) plan accelerated in 1986, when Congress passed legislation permitting the replacement of the defined-benefit plan offered to government workers with a less attractive defined-benefit plan and an attractive defined-contribution plan.
Various studies by benefits consultant Hewitt Associates (nyse: HEW - news - people ) show that only 38% of U.S. employers plan to offer a defined-benefit plan by the end of 2006, compared to as many as 83% in 1990.
For pilots, it sponsors a defined-benefit pension plan, a defined-contribution plan and gives access to a 401(k) that doesn't include any company match.
For those in Mr. Davis's shoes, other possible solutions include establishing a profit-sharing or defined-benefit pension plan, or staying on the job as a salaried employee, consultant or paid chairman.
Union leaders said that they liked the look of the raise, but that what they really needed was a defined-benefit pension plan, not the defined-contribution plan that management had offered them.
One product was a qualified, single-employer defined-benefit pension plan.
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Swooning stockmarkets are a particular headache for British fund managers, who have had too much invested in equities for too long, which is where many of their recent problems arise, and why almost every defined-benefit pension plan is now in trouble.
The unsustainability is due to several factors, but the biggest problem is that Medicare is a defined-benefit, social-insurance plan, with a growing number of recipients especially as the baby boomers enter retirement and a declining number of working stiffs to support it.
The plan would transition Medicare from a defined-benefit system, in which the government is on the hook for whatever services seniors desire, to a defined-contribution system, in which the government pays out a dollar amount for health services, growing with inflation, incentivizing all participants in the system to prioritize health spending to those services that are most valuable.
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Some seminars are designed to educate employees on plan switches--usually to a defined contribution from a defined benefit setup.
Using a defined-contribution plan, such as 401(k), is one way to achieve smooth benefit accrual.
Public-sector unions are enjoying defined benefit plans, whereas the rest of lucky America who has a retirement plan has a defined contribution plan.
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