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. Thereâ€™s a small but growing movement to follow suit in other states.
Those of us stuck in Connecticutâ€™s 401(k)-like plan had been contributing more than twice as much as our co-workers who had pensionsâ€”yet it was estimated weâ€™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.