NIFTY50 Beats DOWJONES In Last Decade (2)

Dow Jones IndexNEW YORK – U.S. stocks are closing sharply lower, with the Dow Jones industrial average down more than 588 points and the Standard & Poor’s 500 index now down more than 10 percent off its recent high. She made many strategic changes to the merged companies and elevated HP as one of the leading companies in charitable giving. Several leading technology publications collectively called her one of the worst technology CEO’s in history. She seemed to make enough positive points in the early debate to grow her support base, but many of those are probably uninformed of her less-than-stellar leadership history. Just today the Dow Jones Average went over 11,000 based on the perception that the European Bailout of Greece will stabilize the Euro. Thanks for giving us some information regarding the definition between the two pension which is the benefit and contribution.

Defined contribution plans are plans in which the employer agrees to contribute a fixed amount to the employee’s pension fund each year in which the employee is employed. From what I have gathered, and I no longer live in Wisconsin so I don’t follow the news from there too closely, what the Governor is trying to do is have existing employees pay part of the contributions to their pension so that it will be funded more securely.

However, one thing to consider with defined benefit plans is the problem we have with both the known under funding of many plans, especially many public sector plans, and the fact that many private sector companies have gone bankrupt and have shed their plans. The information such as in defined benefit segment fixed monthly income is paid for life and in defined contribution plans employer agrees to contribute a fixed amount to the employee’s pension fund each year; is useful for the very large strata of population.

In the recent financial crisis and recession many companies were not able to survive and succumbed to the unfavorable circumstances. However, the defined benefit pensions of most companies are conservatively funded and there is the government’s Pension Benefit Guaranty Fund which tries to insure them and rescue those that run into trouble. Unfortunately in this country the most recent financial crisis has caused many companies to not only lower or stop their employer matches completely, but also terminations of defined contribution plans are on the rise.

I am able to continue to live about as well as before I retired on a defined benefit pension (although unadjusted for inflation), and IRA (rolled over 401k) and Social Security. There have been a number of articles in recent years about people spending months trying to straighten out problems with their pensions due to confusion resulting from job changes, changes in ownership of companies and changes in the companies that administer and act as trustees for company plans.

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