The State of Retirement Planning

Reader Comments
Back to blog

I work for a hospital, that offers a state retirement plan (general member). Due to
the cost, my employer pays 10.3%. They are pushing for us to vote and go with a 457B plan. Which plan is better? I was told that in the
state of Idaho, there are only two hospital that still offers this
plan.
I've been in the plan for six years and is fully vested.

of ID 1:44AM August 07, 2008

Unfortunately you are correct: the cost of the benefits IS much too high and is part of the reason our government is bankrupt. Its not the fault of the civil servants though, it is more the fault of unions/politicians.
While I wish we could give huge pensions for the rest of people's lives it simply isnt feasible. The system worked when people worked until they died, this simply isn't (and shouldnt be) the case any more.

Jesse (The Penny Saved) of CO 4:01PM August 05, 2008

Private companies have LONG KNOWN that free or heavily subsidized retiree health coverage is unaffordable and would bankrupt them ....... thats WHY its all but GONE from the private sector.
The COST of these benefits is no less bankrupting in the public sector. But due to strong labor unions and inept/corrupt politicians little reductions in benefits have occurred in the PUBLIC SECTOR. Amazing how UNFAIR it is that TAXPAYERS (on;ly 10-15% of whom are civil servants) pay for all civil servants' retiree health benefits while not having the money to pay for their own.
Civil Servants are the energizer bunny's of greed and the self-serving, vote-selling, contribution-soliciting, politicians are their enablers.

Bull of NY 3:45PM July 15, 2008

Nothing against public-sector workers now, but citizens who elected governments complicit in the shift (for private-sector) workers) from real pensions to 401(k)----while those politicians retained THEIR real pensions----were dumb-cluck citizens. The folks in Montana and elsewhere may eventually wake up from their gun worship and be "bitter" about that, just as Obama accidentally predicted.

Daniel David of NM 2:50PM July 15, 2008