Hacker News Reader

Comment by gesticulator | Hacker News Reader

What pension? I don’t think that’s a common US benefit. https://careers.microsoft.com/us/en/usbenefits

Pensions used to be common in the US, IBM is from that era, but if you entered the workforce in the late 70s or early 80s then you probably missed that boat although the US stock market has benefited enormously since that time from all that money being put into securities backed retirement funds.

Financial services companies play the same game - bonuses get paid first couple months of the year so around Christmas they cut as many people as they can. Real jerk move but not as bad as working someplace thirty years and then losing your retirement three months before.

I think many companies have moved from pensions to 401k over the last couple decades, but people who came into the company during the pension regime typically retain their pensions. Someone who is approaching 55 could well have a legacy pension.

401K I think is what we consider to be retirement funding.

Microsoft 401K matches vest immediately which leads me to think they may be an untrustworthy source of information.

It says in your own link - 401k, which is a type of pension.

Eh, technically I suppose.

When people refer to a "pension", they're usually talking about a defined benefit plan that requires little or no funding from the employee's paycheck. The amount of money you get at retirement is determined upfront, and based on things like years of service and average wages over some prescribed time period.

401ks don't have vesting though. At worst the match might be in December so people who are laid off mid-year lose half a year of matching.

Some do (employer contributions).

https://www.google.com/search?q=401k+vesting

I had employer match with a 3 year vesting period at one place. I've never had anyone else do more than 12 months, and not everyone did that. The matching is for the paycheck you just paid me for work I already did. Why is it tied to the end of the year? As an employee retention hook it's a lousy idea. It's too small, and lacks all of the dopamine of watching a stock price seesaw up and down, wondering what it'll be worth when you can finally spend it.

> 401k, which is a type of pension.

I was going to fight you on that, but you're right. TIL.

Reply on news.ycombinator.com