Nothing evil about the Red Sox and Angels cutting pension plans
Corporate America is always an easy target. For-profit companies that are healthy but making perceived cuts to the little guy is everyone's favorite punching bag. It's like watching a children's soccer game, everyone is following the scrum and kicking away, but who really has a clue why?
The L.A. Times reported this week that the Los Angeles Angels of Anaheim and Boston Red Sox have ended pension plans for non-uniformed personnel. They have replaced them with improved generation-appropriate 401K plans. You probably haven't heard much about that second part.
The news also coincided with the revelation that Bud Selig will be named Commissioner Emeritus and receive $6 million annually in retirement. Nice timing. Let the scrum begin!
How the rich stay rich, Red Sox cutting pensions...http://t.co/RqUz3HJ3xc
— Drew in NY (@drewdpeabody) December 19, 2014
This an overreaction to what is actually good news and a significantly better option for Red Sox and Angels employees. U.S. News & World Report has a quick primer on why 401Ks are better than pensions. Even if you disagree, you might still conclude there is nothing sleazy about this move.
One veteran scouted quoted in the Times article said, "You can control how your money is invested and you can borrow against it." Two things you can't do in a pension fund. Oh, those heartless corporate devils in L.A. and Boston!
Major League Baseball is financially healthy, to the tune of a record $9 billion in revenues in 2014. Big business deserves watchdogs, but baseball is being good here, employees are benefiting. Call off the dogs ... and don't just read headlines.
