Quote:
Originally Posted by Slava
^ I haven't read everything about this (as in all of the posts), but usually if you've been paying into a DB plan you get that (or what you've paid thus far). New entrants move to a DC plan and in general employees who are in both have assets in both and gain benefits from both when the benefits kick in.
Sure, for some people they're going to vote for the DB plan under any circumstance, and truthfully for the employee who is roughly 40-45 or older this is almost surely the best for them. Younger employees (say 20-40) are not as likely to want the DB plan because they might think that they're more likely to leave for another employer and not reap the reward.
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With something that is defined in a collective agreement, like the pension plan, it is really only guaranteed for the term of that agreement, so any future changes would be voted on by all members, so both plan members, so take the current proposal, none of the future hires have a say on this new plan, only the current members who won't even be covered by it, but the next agreement, there could be 25% of the members on the new plan and 75% on the old plan, if the company put forward an amendment to increase the contributions with no benefit increase for the 25% of employees on the new plan in an effort to decrease the companies costs, and the 75% of employees on the other plan had nothing reduced and were happy with everything else in the contract offer, they could all vote in favour and the contract would be accepted and there would be nothing the 25% could do to stop the change.
When the number of new plan members inevitably begins to heavily outnumber the old plan members, there would be nothing to stop the company in a future round of bargaining from proposing that the defined benefit pay structure be changed(reduced) and since it doesn't affect the new plan members, if they liked everything else in the deal they vote in favour of the offer and cripple someone's pension when they are only a few years away from retirement.