To make this move, you have to work for a company that offers both a 401(k) defined contributionplan and a traditional defined benefit pensionplan, and offers the option to roll assets from the former (the DC plan) to the latter (the DB pension).
For pilots, it sponsors a defined-benefit pensionplan, a defined-contribution plan and gives access to a 401(k) that doesn't include any company match.
Union leaders said that they liked the look of the raise, but that what they really needed was a defined-benefit pensionplan, not the defined-contribution plan that management had offered them.
Should pension fiduciaries be comforted that Congress has approved pension legislation that expressly permits providing independent advice to defined contributionplan participants?
Thus a 24-year-old new to a pensionplan should save 12% of their earnings - minus any contribution their employer makes - and a 40-year-old new to retirement savings should pay 20%.