States and local governments across the country are attempting to make changes to their retirement systems. In some states where only employers were required to contribute to retirement systems, now employees are being required to contribute a percentage of their annual salary to retirement. Other changes include asking employees to contribute more than they have in the past. Some public employers have eliminated defined benefits to retirement systems for new employees and offer only defined-contribution plans. Some plans are requiring new employees to work longer before they are vested in a retirement plan, and some employers have raised the age for employees to be eligible to collect their pensions.
1. If you are working for an organization that offers a pension/retirement plan, review the terms of the plan and answer the following questions:

a. How many years do you have to work for that organization to be vested in the plan?

b. At what age can you receive the pension?

c. Does the employer, the employee, or both contribute to the plan?

d. Using your current salary, based on the provisions of the plan, what would be your monthly and yearly pension benefit?