Employment can often have many benefits for workers while they are employed and possibly even later during retirement. When a person has been with an organization for some time, they may have been part of a pension plan that would help provide the individual with income during retirement. These plans can be very beneficial after retiring and losing a steady income from employment, but pensions may be at risk for some individuals.
Many Texas workers are aware that the national debt level has been a point of worry and contention for some time. Parties are attempting to find areas in which reducing spending could help, and in recent years, pension plans have taken a hit. The federal government may not have enough funds to provide retiring employees with income during retirement that they felt they had earned.
Many states are therefore changing the way pensions are handled. Federal employees were often offered pensions in previous years, but changes have made retirement funds for such employees more similar to the 401(k) plan. With these plans, it is possibly more the responsibility of the employee to save money for retirement as opposed to having a fixed payment set for retirement that was contributed to by a company.
As retirement is supposed to be an enjoyable time in an individual’s life, it is important to understand the differences between a pension plan and other retirement funds. If an employee is concerned about their retirement plan and feel that information on employment laws dealing with pensions could be beneficial, learning more about Texas state laws and federal laws could provide reliable information. Receiving payment to which they are entitled is important for all employees and those heading into retirement.
Source: Texas Public Radio, Pensions Become Less Certain For Government Workers, No author, Dec. 12, 2013