By Ron DeLord
If you thought benefits envy would die out, you are wrong. It is just starting.
401k plans were a failure from the start. The employer is not mandated to contribute, the employee can cash out after each job, the employee can borrow from the 401k plan, and the law does not allow the employee to set aside enough tax-deferred money to retire, even if they wanted to.
401k plans are based on a lie that the worker would be free of corporate pensions,could change jobs and free to self-direct their own retirement. In reality, they’re simply a cheaper option for corporations (and, now, some public employers) than defined-benefit pensions.
As workers with no retirement plans reach age 65, they will be angry and want to lash out at someone. It cannot be their own fault. Thus, they will want to rescind DBP for public employees, since they, the taxpayer, are funding it and will never benefit.
Visit Ron DeLord’s blog at www.rondelord.com.