By Deanna Ritchie
Source: Microsoft Start
Data from the Bureau of Labor Statistics indicate that just 15% of private industry employees have access to a pension, also known as a defined benefit plan. Employers began moving away from these plans in the late 1970s when the 1978 Revenue Act began allowing employees greater control over their retirement savings by using pre-tax dollars for 401(k) contributions. Some employers saw this as a potential opportunity to reduce risk and long-term financial obligations, ultimately leading to a better bottom line. However, many employers are reconsidering that decision amid data showing how cost-effective pension plans are compared to 401(k) plans. If you’re in the market for a new job, this could be good news for you and the company you’ll work for.