[ian]

To the best of my knowledge, and recollections from speaking to a pension expert, is that the 3 percent optional flex does not/did not impact our PA. That was a benefit that my employer took advantage of when our plan was revised I the late 90's.

 

[OhGreatGuru]

Expecting 20-somethings to make good long-range decisions about pension plans is asking a bit much. As this is a DB plan, sounds like a good way for the employer to reduce its pension liability, under the guise of "flexibility", knowing full well that many young employees will take the money in their pocket now, rather than plan for retirement.

 

[ian]

I do not understand how this would reduce the er's db pension liability. There is no impact on the DB. The flex option is exactly that. It is used to 'buy' enhancements such as bridges, inflation adjustments, guaranteed payout periods, etc. When an ee selects this options it adds up to $1600 per year to the per ee benefits cost.