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Oceanside's middle managers want a raise

There were two causes for the loss of good defined benefit plans in the private sector. One is the decline of unions, and that came in part from an attitude of the younger generations that they didn't need to "belong" to anything. But the other factor was, ironically, passage of ERISA in 1974. For those who don't know what that stands for, it is The Employee Retirement Income SECURITY Act of 1974. (Emphasis mine.) There were many abuses in retirement plans over the years, and a federal law was seen as necessary to avoid situations where promises of pensions were not kept. I say that instead of income security, the Act brought more income insecurity, because corporate America found that they had to fund the plans more generously than they had ever contemplated, and that the funding was cutting into earnings. Gradually but inexorably the plans were dropped or converted to 401(k) plans. Sadly the 401(k)'s were poor due to being designed to be cheap, and too many employees didn't use them, sometimes not getting the match made by the employers ("free" money in the trade.) I doubt that private sector unions will come back to any large degree. Today we see them getting militant only in some of the lower paid occupations, such as hotel workers and on occasion, fast food. Anyone employed in the private sector today needs to understand that his or her retirement is in his or her hands, and that the employer feels no obligation to provide a living retirement benefit. And that's sad.
— October 29, 2018 4:01 p.m.

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