Is your employer shoring up your 401K losses?

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Economic crisis hits IMRF, tax increases might be needed

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You just have to love the white paper on the IMRF website :

The Case for Defined Benefit Plans:"The Best Way To Secure Your Financial Indepedence"

"IMRF believes a defined benefit plan is the best approach for providing financial
security for persons in retirement and is the most cost efficient method for
employers to attract and retain qualified people who perform critical work in the
public sector. For public sector employees, a defined benefit plan provides a
cost-effective, proven and stable method to save for retirement. Moreover,
taxpayers can expect public employees to focus on providing public services
instead of trying to become investment experts.

At a time when Social Security benefits are under duress due to increased
longevity and the retirement of the Baby Boomer generation, a defined benefit
plan should be seen as one of the few means of effectively providing income
protection and maintaining an adequate standard of living when employees are
unable or no longer wish to work.

Defined benefit plans are a tried and true method of securing one’s retirement.
What was once called old-fashioned is—in fact—the cutting edge of providing
financial security for those in retirement."

This message has been edited. Last edited by: Ted E.,

Can't wait for the Dems to take over my 401k. I'm sure they would give me a better return....oh wait, it would only be 3%...

401k

House Democrats recently invited Teresa Ghilarducci, a professor at the New School of Social Research, to testify before a subcommittee on her idea to eliminate the preferential tax treatment of the popular retirement plans. In place of 401(k) plans, she would have workers transfer their dough into government-created "guaranteed retirement accounts" for every worker. The government would deposit $600 (inflation indexed) every year into the GRAs. Each worker would also have to save 5 percent of pay into the accounts, to which the government would pay a measly 3 percent return.