Year: 2020

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Pension Plans

December 17, 2020 admin Comments Off on Pension Plans

A pension plan is essentially a retirement plan that is provided by your employer. Unlike a 401(k), you do not have to contribute to the plan in order to receive distributions. Instead, your employer funds your pension plan.
Pension plans initially became popular during World War II. After Congress passed the Stabilization Act of 1942, the president was able to freeze salary increases for employees across the country. President Franklin Roosevelt immediately used these powers to stop employees from getting additional raises, bonuses and commissions.
Because of World War II, the demand for labor was growing at an unexpected rate. This was …read more […]