Get more! Sign up for PLANSPONSOR newsletters.
Benefits April 26, 2006
NJ Transit Makes DB to DC Move
April 26, 2006 (PLANSPONSOR.com) - New Jersey
Transit will begin offering 401(k) plans to some new
employees beginning July 1.
Reported by Rebecca Moore
Gannett News Service says the change from traditional defined benefit pension benefits will only apply to workers who are not part of employee unions. Employees in unions will have a choice to switch to the 401(k) system, while keeping the current value of their pension.
Republicans have called recently for shifting all public workers to 401(k) accounts to save money, according to the news report. Employee unions oppose the change, and say that creating two classes of workers with different benefits can damage morale.
In support of the change, NJ Transit Executive Director George Warrington said 401(k)s are more portable for workers changing jobs and give employees more control over their investments.
« Texas Senator Proposes $100 Million Increase In Teacher Retirement Fund