Used to be, employers added plans to enable tax breaks for their people.

Cost about $4k to write a profit sharing plan, get it approved by the various govt entities and then do all the compliance testing. About $2k a year after that.

Good professional firms offered Pension, Profit Sharing and the 401k plus other Cafeteria benefits. The pension was their bare-bones minimum, the profit-share was motivation to the troops to do a good job so that above and beyond year-end bonuses there might be more for everyone. The 401k was for the savings conscious ees to get a tax-break and access for home downpayment or education expenses.

In the 80's, when non-yuppie Baby Boomers tuned into Bruce Williams and other Money Magazine gurus, they wanted more. Employers at the same time were getting more strapped for income. Cash flow wasn't as fastly flowing.

Competitors began raising pay, dropping benefits, doing away with Pensions. They sold this to their people, and they BB's bought it.

Lotsa employees became leased employees.

The 2000 tech world collapse ended benefits competition between tech employers.

The benefits market consollidated and suddenly there were fewer quality providers of benefit programs.


Someday soon, that .10/hour Nike worker in Micronesia will have the same benefit pkg, maybe better than the USA worker. It is the goal.

If you have any money of your own to protect; Now Is The Time.