C H A P T E R 12
More Mr. Nice Guy
Why Cutting Benefits Is a Bad Idea
THE DAILY HEADLINES tell the tale: companies are abandoning pension and health care benefits for both active employees and retirees. Retiree health benefits are under siege—an estimated 40 percent of companies with more than 5,000 employees no longer offer retiree benefits at all, and many others are increasing the amounts that retirees have to pay to maintain coverage.1 Companies are also eliminating or curtailing other benefits for retirees, such as life insurance.2 And active employees are expected to pick up more of the tab for their health care costs.
Defined benefit retirement plans—those that pay a guaranteed, fixed amount, often based on years of service and the ...
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