Hello? Is it safe to stick my nose in here? I think you guys are talking apples and oranges.
MythMan - I think IceShark is just talking about how the statistic is calculated, and I think he is saying that BLS aggregates retirement plans like 401ks and defined benefit plans into the same statistic.
What I think you are asking is whether the actual money is segregated, or aggregated, by the plan administrators. Right?
I don't really know much about retirement plans, but I do know a little since I used to do a lot of divorces. The paperwork for setting up and administering a 401K and the paperwork for setting up and administering a defined benefit plan are VERY different - I could bore you with it if you really want me to, but I don't think you do, and, as I said, I am not really an expert. ERISA makes my eyes water.
BUT, based on the types of gyrations you have to go through to set up a defined benefit plan, I doubt very much if any company would aggregate the actual funds for the two plans in one account.
By the way, defined benefit plans can be very good for small closely held businesses, so don't listen when people tell you they are dinosaurs. The closer you are to retirement age, the more you can put away, generally speaking. Big corporations hate them because they are liabilities, and they prefer to have the employees fund their own retirement. 401ks make sense if you don't plan on staying at the same corporation all your life, and who does anymore. But if you are the boss, it is one of the last great loopholes. Check it out. |
