do nurses get employer sponsored pensionplan? - page 2

Pardon my ignorance but about a decade ago, as far as i know the hospitals are not offering employer sponsored pension plan to nurses. Yeah, you can participate in 401K or the IRA but it's the employee who has to make... Read More

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    I once worked for a company with a Taft-Harltley Union plan that contributed a specific dollar amt. for each hour we worked and there were vesting years that followed. I stayed until I was vested 100 percent with no out of pocked contribution ever made by myself. Unfortunately, that retirement will not survive me when I pass. I now work for a company with a 403b matching plan with a standard match in the 4-6 percent range which I can pass my proceeds on to my survivors.

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    We have one but they have decreased the contribution amount to 5% max, used to be 8% max I believe. They have grandfathered older workers who have a choice between a real pension vs cash balance, but who knows if they don't get rid of it in the future. There is no guarantee these days, they can easily cancel it or change it and then you will get little or nothing, only what the govt bailout offers if you are lucky.

    You are better off putting money into a Roth IRA up to the max after you get the company match if any for your 403B. Also the Roth can function as a defacto ER savings; whereas the 403b/401K you get a penalty 10% federal, 10% state plus taxed so lucky if you have 50% left over if you have to withdraw it in an emergency.

    Capital gains tax is so low now that you are better off using a regular no loads index fund after you maxed out your Roth IRA. I think the tax rate would be less than 403b.
    FocusRN likes this.
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    Yes. My employer has a pre-tax 403(b), a post-tax 403(b) Roth (if you max. out your pre-tax contributions), and a pension plan. Pension vesting is 5 years.
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    Quote from nicurn001
    Maybe they learned from the Enron employee's, when you invest in the company you work for , you run the risk that if they go out of business you lose your investment as well as your job . Although profit sharing sounds good , it does have this major downside .
    If the profit sharing plan does not invest in the company you work for, the downside you mention does not exist. If it does invest in the company you work for, or your company match is in the form of company stock, look into whether or not you can move the match money into a different investment within the plan. Problem solved.

    You are better off putting money into a Roth IRA up to the max after you get the company match if any for your 403B.
    Why are you better off doing that? Company matches often stop far before you've maxed out on the retirement investment limit. Roth IRAs are after-tax, but you can still reap the benefits of pre-tax retirement investing in 403(b) or 401(K) after the company match. Second only to mortgage interest and dependent deductions, maxing out on pre-tax retirement savings is probably the biggest federal tax deduction you can receive as a middle-class taxpayer.

    Also the Roth can function as a defacto ER savings; whereas the 403b/401K you get a penalty 10% federal, 10% state plus taxed so lucky if you have 50% left over if you have to withdraw it in an emergency.
    Some plans allow you to take loans from your profit sharing plan, which you pay back at a favorable interest rate through payroll deductions. You are essentially paying the principal and the interest back to yourself. There is no third party taking the interest payment.
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    In one of my most recent jobs (just a couple of years ago), the hospital deposited 10% of each paycheck's amount into a retirement fund for me. This wasn't deducted from my pay. It was something extra they deposited...
    brandy1017 likes this.
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    We lost ours last year- it is a very rare benefit in todays market. Even if you get a pension, what guarantee do you have that it will be there when you retire. Pensions are federaly insured, but not necessairly at the same benifit level promised in the original plan. Pension plans have gone "broke" in recent years resulting in people who were counting on XXX dollars/year of service actualy getting much less. I miss my pension, but a good 401k/403b is more secure. I know a number of nurses who were counting using thier pension to retire in the next 10 years and not contributing to a 401k, now finding thier plans for retirement turning into "work till you die". If you are including "the Rapture" in your retirement finiancial planning, you may want to look into alternative funding options.
    Geeitsgina likes this.
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    Sorry FLArn misread employer for employee ( or brain saw what it expected to see ), yep if you are signing up for that free money you ara a bit daft .
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    My hospital has a pension plan. I am required to contribute 10% of each paycheck to it and my employer always contributes 14% of each paycheck.
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    My system has 403(b) as well as a pension plan. Personally I'm not counting on getting the pension paid out to me as I'm still decades from retirement and who knows what will happen by then...if it still exists that'll be bonus money on top of what I've managed to save. I just figure it's better to plan for it not existing anymore and being pleasantly surprised if it is instead of relying on it.
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    Each of the 3 hospitals in which I've worked has had a defined benefit pension/cash accumulation plan in addition to a 401(k) or 403(b), and I opted to take a one time cash payout of the accumulated vested funds when I left my jobs at the first two.


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