Anchor ads are not supported on this page.

4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs

Employers squeezing employees' 401 (k) plans

San Diego expert comments on the practices

The private sector boasts how it has replaced employees' defined benefit pension practices with 401(k) plans, which are pushed by Wall Street. But a Bloomberg News story dated Thursday (February 13) is extremely disturbing. It shows how large employers are holding back on both the amount and the timing of 401(k) matching funds, and dragging out vesting schedules.

Sponsored
Sponsored

And look at which companies are doing it: one is Oracle Corp., the software firm. Its chief executive, Larry Ellison, is one of the nation's richest persons, worth $41.8 billion. The company's performance has been lagging. Last year, shareholders rejected a fat pay package for Ellison. The poor dear had to take an 18 percent pay cut — to $78.4 million per year.

Another company that is squeezing employees' 401(k)s is Wall Street's JPMorgan Chase. Last year, its chief executive, Jamie Dimon, was given a 74 percent raise to $20 million after criminal and regulatory probes cost the mammoth bank $23 billion in settlements.

Bloomberg points out that Wall Street has been claiming for the past 30 years that 401(k)s are a big improvement over pensions. "It hasn't worked out that way," says Bloomberg. The median balance in 401(k) and individual retirement accounts for households headed by people ages 55 to 64 was a mere $120,000 in 2010, according to a Boston College study. That would provide only $4800 a year, assuming seniors withdraw 4 percent annually.

Mike Alfred, who heads San Diego's BrightScope, which ranks retirement plans, is quoted in the article saying, "Top executives with high compensation likely don't care what their company contributes to a 401(k), but for employees in the ranks it can mean the difference between financial security and scarcity in old age."

Here's something you might be interested in.
Submit a free classified
or view all
Previous article

Making Love to Goats, Rachmaninoff, and Elgar

Next Article

San Diego's Uptown Planners challenged by renters from Vibrant Uptown

Two La Jolla planning groups fight for predominance

The private sector boasts how it has replaced employees' defined benefit pension practices with 401(k) plans, which are pushed by Wall Street. But a Bloomberg News story dated Thursday (February 13) is extremely disturbing. It shows how large employers are holding back on both the amount and the timing of 401(k) matching funds, and dragging out vesting schedules.

Sponsored
Sponsored

And look at which companies are doing it: one is Oracle Corp., the software firm. Its chief executive, Larry Ellison, is one of the nation's richest persons, worth $41.8 billion. The company's performance has been lagging. Last year, shareholders rejected a fat pay package for Ellison. The poor dear had to take an 18 percent pay cut — to $78.4 million per year.

Another company that is squeezing employees' 401(k)s is Wall Street's JPMorgan Chase. Last year, its chief executive, Jamie Dimon, was given a 74 percent raise to $20 million after criminal and regulatory probes cost the mammoth bank $23 billion in settlements.

Bloomberg points out that Wall Street has been claiming for the past 30 years that 401(k)s are a big improvement over pensions. "It hasn't worked out that way," says Bloomberg. The median balance in 401(k) and individual retirement accounts for households headed by people ages 55 to 64 was a mere $120,000 in 2010, according to a Boston College study. That would provide only $4800 a year, assuming seniors withdraw 4 percent annually.

Mike Alfred, who heads San Diego's BrightScope, which ranks retirement plans, is quoted in the article saying, "Top executives with high compensation likely don't care what their company contributes to a 401(k), but for employees in the ranks it can mean the difference between financial security and scarcity in old age."

Comments
Sponsored
Here's something you might be interested in.
Submit a free classified
or view all
Previous article

Top Websites To Buy Instagram Likes + Bonus Tip!

Next Article

Nation’s sexy soldiers stage protest at Pendleton in wake of change in Marine uniform policy

Semper WHY?
Comments
Ask a Hipster — Advice you didn't know you needed Big Screen — Movie commentary Blurt — Music's inside track Booze News — San Diego spirits Classical Music — Immortal beauty Classifieds — Free and easy Cover Stories — Front-page features Drinks All Around — Bartenders' drink recipes Excerpts — Literary and spiritual excerpts Feast! — Food & drink reviews Feature Stories — Local news & stories Fishing Report — What’s getting hooked from ship and shore From the Archives — Spotlight on the past Golden Dreams — Talk of the town The Gonzo Report — Making the musical scene, or at least reporting from it Letters — Our inbox Movies@Home — Local movie buffs share favorites Movie Reviews — Our critics' picks and pans Musician Interviews — Up close with local artists Neighborhood News from Stringers — Hyperlocal news News Ticker — News & politics Obermeyer — San Diego politics illustrated Outdoors — Weekly changes in flora and fauna Overheard in San Diego — Eavesdropping illustrated Poetry — The old and the new Reader Travel — Travel section built by travelers Reading — The hunt for intellectuals Roam-O-Rama — SoCal's best hiking/biking trails San Diego Beer — Inside San Diego suds SD on the QT — Almost factual news Sheep and Goats — Places of worship Special Issues — The best of Street Style — San Diego streets have style Surf Diego — Real stories from those braving the waves Theater — On stage in San Diego this week Tin Fork — Silver spoon alternative Under the Radar — Matt Potter's undercover work Unforgettable — Long-ago San Diego Unreal Estate — San Diego's priciest pads Your Week — Daily event picks
4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
Close

Anchor ads are not supported on this page.