Do retirees from a company reap the benefits of those who no longer work for that company?

Question

For example, A works at Widget Co. for 35 years and gets a pleasing retirement plan. B worked at Widget Co. for 5 years, and contributed to the same retirement plan, but was severed and released with no benefits, as B was not fully vested, nor did B have as many years with the company, through no fault of their own. So, A gets money that B contributed, in addition to A's own contributions. Is that ethically and morally acceptable?

Answer 1

Put the question the other way round.
Would people who cut and ran from a company be able to reap the benifits of those who served loyaly too the end of their time?

Answer 2

It is unethical and not morally acceptable because the number of years has no bearing on the retirement plan so long as you have paid the all the premiums and the whole amount of insurance. There is no justice to B in the instance case it is only the institution who benefited. A however has no contributions on the immoral act made by the company because it is only due what A has contributed. B must file a case against the the company.

Answer 3

A is not reaping the rewards of b contribution, you are forgetting the 35 years of contributions that A has made to allow the generations of widget workers before him to enjoy a plentiful retirement. B should just be fully aware that **** happens before making any commitment to a long term financial plan.

Answer 4

i dont think A would get anything more then they had contributed, perhaps along with what the employer had contributed,
as to B, most retirement plans have concessions for if an employee contributes but doesnt retire, whether by leaving the job or getting fired, and B would receive the money
if not, then the company would absorb it, i am almost certain they will not give anything away to A
so it really depends on what exact type of retirement plan
was there
are you positive A is getting B's contribution?

Answer 5

Hello Coco,
I have retired and now I can live in peace quiet and comfort, thsnks to a pension I was mindful enough to contribute to, I get a fair lump sum, and a monthly pension that my wife will enjoy after I am on my way to my Gods place, and all is well, those people that never had the chance of contributing to a pension scheme, because there was no scheme available to or for them, could have made other provisions, for their retirements. and if they didn't well I am sorry for them, but life is expensive, and it is never goin to get any cheaper.. For all your A's-Bs-and Cs, there are always other ways to secure your future as a retiree. I do hope I have helped with your query..Good Luck now..Tony M

Answer 6

When people leave the pension fund they get their contributions back and interest.

"A" doesn't get anyone's contributions except his own plus the compound interest on his investment and his employers conribution to his/her pension over 35years which comes to a very handsome sum of money.

Pensions Funds have rules, if you leave within a certain time you get your contributions + interest, not a pension. It's in the RULES that no one reads.

Answer 7

When companies "right size", far more people benefit than those that don't. Business needs dictate such actions and usually companies that continue business-as-usual, farther than they should before right sizing, normally do so so that the fewest number of employees are effected.

Answer 8

No when you worked all your life for a crap company as i did,,,,,got sweet F&&k ALL,,,,,,,,,,,,,,

Answer 9

i really don't have a clue but what if me and you chat later hit me up babe!!!!!!