A press release issued January 7, 2010 by the Employee Benefits Research Institute (EBRI) --- a research institute in Washington, DC, which focuses on retirement, economic security issues, saving, and health --- stated that the idea that in yesteryear most American worked for the same employer throughout their working years is a myth. It was all a romantic notion. You can read the full press release here - http://www.ebri.org/pdf/PR.862_07Jan10.Tenure.pdf.

 

When people and groups in the public policy sector talk about retirement, there tends to be a lot of discussion of ‘the good old days.’ Supposedly in the good old days, nearly everyone participated in a defined benefit (DB) plan, and no one ever changed jobs, making retirement this wonderful time of life to look forward to where there would be no money issues. Well, we’re coming to realize this idealization of the good old days is a myth. Studies have shown, and have been showing for years, that people do not stay at the same job for their entire careers. 

 

We thought this new study by EBRI was important to mention here for this reason --- when discussing retirement issues and public policy, it’s very important to look at all sides. No retirement plan is perfect but some companies are doing what they can to provide secure retirement for their employees. We’re always encouraging members of The ESOP Association to reach out to their members of Congress about the value of employee ownership and why it’s important to enhance and improve ESOPs. All the information you can present that shows the value of your ESOP, and what your company is doing, the better. And keep in mind, when a vested employee leaves a job where there was a defined contribution plan she/he is going to have her/his account go with her/him.