As I'm very well aware.
Of the four companies that I've worked for in my career, three of them had defined benefit pensions, but I'm only collecting two of them as the 3rd company, EDS (now HP), converted their pension into a 'cash fund' which comes under that same rules as does any tax-deferred account, such as a 401k. There are good and bad things about it. The good is that I can defer taking anything out of it until I'm 70 1/2 thus keeping it growing at a minimum of 5% annually with no tax liability until I start to actually take money out of it. But when they converted it, it automatically became worth less, at least when you looked at what the projected payments would have been at age 65, when you would have had to start taking payments. Of course, with my other two pensions, since I had to start taking them last year (when I turned 65) they are now being taxed as regular income and since I'm still working full time, I'm in a higher marginal tax bracket than I would be if I were actually retired. And as for my present employer, Siemens, at least for their American employees, they ONLY have a 401k although they do match a full 6% of my annual salary so that does amount to something.
Note that I've also deferred taking Social Security since that continues to grow at the rate of 8% annually past age 66, however, my wife started taking hers when she retired at 62 as she had worked all her life and does get a fair amount each month, but then we have to pay at least federal taxes on 85% of that amount.
OCU
| 
