February 21, 2017
After being trapped in an inferior 401(k)-style retirement plan, is it possible for a union to reverse the trend and switch back to a traditional defined-benefit pension?
Connecticut state employees did just that in 2012. Our little-known story, combined with similar victories in Massachusetts and West Virginia, shows it can be done. There’s a small but growing movement to follow suit in other states.
Those of us stuck in Connecticut’s 401(k)-like plan had been contributing more than twice as much as our co-workers who had pensions—yet it was estimated we’d receive less than half the retirement income. Without adequate information, we had chosen this plan when we were hired, thinking it was better than the pension.