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Pension's Vs. 401(k)
Local 571 offers Multiemployer Defined Benefit Pension plans. These plans
are more secure, stable, and offer greater benefits than that of a 401(k).
Advantages of Pensions
For Employers
| |
401(k) |
Defined
Benefit Pension |
| Employer has fiduciary liability? |
YES |
NO |
| Employer pays administrative Costs? |
YES |
NO |
| Employer pays payroll taxes on employee
contributions? |
YES |
NO |
| Employer contributions fluctuate with employee
contributions? |
YES |
NO |
For Employees
| |
401(k) |
Defined
Benefit Pension |
| Employee contributions required? |
YES |
NO |
| Employee pays payroll taxes on contributions? |
YES |
NO |
| Employee pays investment fees? |
YES |
NO |
| Employee assumes investment risks? |
YES |
NO |
| Monthly benefits for life? |
NO |
YES |
| Early retirement Benefits? |
NO |
YES |
| Disability Benefits? |
NO |
YES |
| Spouse Benefits? |
NO |
YES |
| Death Benefits? |
NO |
YES |
| Benefits insured by the
PBGC? |
NO |
YES |
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