Pension, I can't believe it.

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So I did work for 10 years at a institution that has a defined benefit plan and I figured since I was getting SSI at age 62 I would apply for that also. Every place else I worked had 401k. Last week I got my first check(small), this week I got a notice of possible benefit reductions due to plan being under funded. Wouldn't you just know it. I bet there are a whole bunch of baby boomers hitting them at the same time and they are buckling under the weight of it. Like they didn't know this was going to happen. After all, for the last 30 years the bulk of workers at most healthcare institutions were women who happened to be baby boomers. The worst thing about it is one place on the notice it sounds like I will be affected, another place they say "maybe" and another place they say don't worry about it you are not affected because you are already getting your check. I gave my hubby the paper to read and he said it was very confusing to him also.

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Specializes in Nursing Professional Development.

I am really sorry to read that, oramar. I hope you get a lucky break and it is not as bad as you fear. Do have enough other retirement funds to tap? Or will it mean that you have to delay retirment?

But thank you for sharing your story with us. Maybe someone else will learn something from it that will help them in some way.

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Specializes in Nephrology, Cardiology, ER, ICU.

It terrifies me that I will get to retirement and it won't be there. However, unlike Oramar who has a plan, my only idea is to never retire.

Oramar - I wish you the best.

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There is so many unanswered questions about this situation that I don't even know if I should be upset or not. I would not want to be in their HR department, the phone must be ringing off the hook. I get the impression that the smaller your check is the less you will lose. If that is true then I don't have much to worry about LOL. I do know people that put in 40 years at that place. They must have fainted when they got that letter.

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Honey I feel your pain, but sadly it is not just "boomers", but nurses in general have had to retire on megar amounts.

Pink ghetto jobs always made the assumption that a woman would marry and therefore her husband was responsible for her future. It has only been within the past ten or so years that wages for nurses have inched up to a decent level. But the recent upheaval in both the credit markets and economy have left many pension funds, including state and local governments underfunded. The fastest way to cover this shortfall would be to raise taxes, but no politican will touch that idea right now with a barge pole.

Wish you luck in getting this sorted. As for myself have already resigned to the idea I shall be working until the day I die. Simply don't see how to square the circle.

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For those that kindly asked about my back up plan, it is my husband. He worked 40 years in a union and they always kept their plan over funded to the tune of about 120%. When the crash came the plan actually dropped to 90% funded, which is still well over what the law requires. That is because they are a union and they are about taking care of their people, a business would never do that. Hospital management probably kept their funds at about 80% which is all the law requires and they got caught with their pants down when the crash came.

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I have a defined benefit pension that is underfunded. The state is already working on fixes. (Freezing increases, increasing penalties for early retirement, increasing contributions for employees and employers.)

One of the things that gets lost in defined benefit plans is that they can grow their way out of deficits with a combination approach. Defined contribution plans can't because they are inherently inefficient with their single account structures.

Oramar odds are that you will see a decrease in inflation adjustments but the core benefit will remain relatively uinscathed.

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I will have to google "defined benefit pension" and "defined contribution plan" I am not clear on what the difference happens to be.

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Specializes in Critical Care,Recovery, ED.

There is a huge difference between A DEFINED BENEFIT AND a DEFINED CONTRIBUTION PLAN. You must know the difference between them, the advantages and disadvantages of both. For you youngsters out there please don't wait until you are near retirement to learn the differences. Also don't be dependent upon your spouses knowledge and/or plans. In addition know how the different types of settlement options can effect your retirement income.

Oramar please talk with HR. If you truly have a defined benefit the check shouldn't change unless you have an annual COLA. The amount of the COLA could change but not your base amount. If you took a structured settlement from a defined contribution plan then yes it can change either up or down depending on the value of the underlying funds.

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Specializes in Home Health, Nursing Education.

I have nothing to provide you to help with this. I wanted to write that I am so sorry this is happening. I am glad your husband's union did what it did, but it is horrible to get a letter like that.

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