La-Adda.org
Title
ADDA Association of Deputy District Attorneys - Los Angeles HOMEPAGE
Description
Governor Schwarzenegger is proposing to force new hires into individual risk accounts. Not only will this condemn future public workers into a retirement plan based on a gamble, it will force higher contributions from current employees and threaten health coverage, COLAs, disability retirement and survivor benefits. Not only do our current secure retirement plans guarantee lifelong and predictable benefits, they are healthy, economical and well managed. Under the Governor’s plan, participants take all the risks, with no guarantee of how much retirees would receive or how long benefits will last. While the Governor claims his plan will save money (it won’t), he has admitted his real goal: “I want to starve the public sector.” That means US! We must take a stand.
Your secure retirement plan is known as a "Defined Benefit" plan, or "DB." The amount you would receive each month of your retirement is fixed and based on your salary and years of service.
Individual risk accounts are known as "Defined Contribution" plans, or "DC." The amount you would receive each month of your retirement would depend on your investment and whether or not the stock market is up or down.
