Government agencies still offer pensions, but some private companies do too.

Government agencies still offer pensions, but some private companies do too.

With the increasing costs for companies associated in creating pensions, more and more companies are ditching these traditional plans for “more affordable” alternatives such as defined contribution plans, famously known as 401(k)s.

While a 401(k) can help you save for your future, pensions are more advantageous since you get to receive a definite amount every month, a sum determined by how long you have worked for the company.

If you dislike the risks that come with a 401(k), then maybe you should consider transferring to any of these companies that still offer pensions to its loyal employees:

Government Agencies

They say the best pension plans come from federal, state and government offices.  According to Bureau of Local Statistics (BLS), government employees have long enjoyed pensions with stellar retirement perks.

As per the study of the Pension Research Council of the Wharton School – University of Pennsylvania, the top 3 professions that enjoy retirement offers include that of educators (primary, secondary and special education), managers and supervisors, and protective services employees.

If you do not belong to any of these niches, you can still avail of a pension plan by joining a Union. In 2007, more than 95% of Union government employees were awarded with the traditional pensions they have been rallying for.

Big, Private Institutions

Private companies that still offer pensions include large industries such as oil and gas firms.

Private companies that still offer pensions include large industries such as oil and gas firms.  Photo: MikeBaird

Although private institutions offering pensions is a dime a dozen (21% of all registered companies) working for big and established companies can give you the pension you are looking for.

According to a 2007 survey by BLS, 34% of companies with more than 100 employees offered pensions, while only 9% of institutions with less than 100 workers provided pension plans.

Those who stand a chance to get pensions from their private companies include managers and supervisors, construction and maintenance professionals, and transportation and production posts. Some office workers (19%) are given pension, while only 8% of service sector personnel are awarded with such benefits.

Just like in government service, being a Union member can help you get a retirement pension, since 70% of private unionized workers had been granted with such benefits six years ago.

As for location, working for private companies based in the urban districts of the Pacific Coastal, Northeast and Mid-Atlantic regions can give you a chance to get a retirement pension.

With regard to industries, energy companies, pharmaceutical companies and some manufacturing institutions are more likely to offer traditional pensions to its employees.

Very Small Industries

Pesions are astill offered in some very small industries and family businesses

Pensions are still offered in some very small industries and family businesses.  Photo: Rich701

If you cannot work for a government agency or a big, private company, then opt for small businesses that employ about four-five workers. Good examples include law offices and dental offices, which create pension plans for its employees in order to avoid the taxation associated with creating retirement accounts.

With the many companies that are refusing to offer pensions for new employees, some even freezing existing pension accounts, your chances of getting a pension slims down month by month. If you would like to have a comfortable pension as you go old, then make sure to look for any of the aforementioned industries that provide retirement benefits to its employees.

What questions do you have about companies that still offer pensions?  Do you work for a company that still has a defined benefits plan, or maybe a government agency?  Tell us about it in the comments!  And don’t forget to share this article with friends!

 

5 Responses to Companies that still offer pensions

  1. Finding a company with a defined pension plan would be the best!

    PS Congrats on the new site. It looks really good.

  2. I work for the DOD so I’m covered under a pension plan, which is pretty cool. Although it’s not nearly as generous as previous pension plans, it still will be a good provider of income for me in my retirement in a few decades.

    • pradmin says:

      Yeah, some of those federal pensions of old were much more generous than those offered now. At my work I had the option (within the first 30 days of employment only!) to choose Plan A that offered 1% of salary for each year of employment or plan B which offered 2%, but required me to make contributions, which could change every year. Currently that is about 5.5%.

  3. Tom Long says:

    The title is “Companies that Still Offer Pensions”, yet not a single company name is listed. I’m looking for a list!

    When I worked for the DOD in the late 1980s thru the 1990s, I only had the Thrift Savings Plan – no pension. It sounds like they reinstated pensions, according to this (undated) article. When was this written?

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