The Plot Against Pensions and the Plan to Save Them
source: http://www.alternet.org/workplace/118783/the_plot_against_pensions_and_the_plan_to_save_them/
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For the 50 million Americans with 401(k) retirement plans, 2008 is a year many wish they could forget. Workers saw their 401(k) plans lose between 20 and 30 percent of their value as the Dow Jones Industrial Average suffered its worst year since the Depression. Between October 2007 and 2008, more than $1 trillion worth of stock value held in 401(k)s and other defined contribution plans were wiped out. For workers nearing retirement, the losses have been devastating.
Meanwhile, several major corporations have recently announced they are suspending matching contributions to workers’ 401(k) plans due to the economic crisis. The firms include FedEx, Motorola, General Motors, Starbucks and Sears. Congress is now considering overhauling the 401(k) program.
For the 50 million Americans with 401(k) retirement plans, 2008 is a year many wish they could forget. Workers saw their 401(k) plans lose between 20 and 30 percent of their value as the Dow Jones Industrial Average suffered its worst year since the Depression. Between October 2007 and 2008, more than $1 trillion worth of stock value held in 401(k)s and other defined contribution plans were wiped out. For workers nearing retirement, the losses have been devastating.
Meanwhile, several major corporations have recently announced they are suspending matching contributions to workers’ 401(k) plans due to the economic crisis. The firms include FedEx, Motorola, General Motors, Starbucks and Sears. Congress is now considering overhauling the 401(k) program.
