Last year, Southwest Airlines pilots approved a new contract under which pilots earned a substantial pay increase: a 50 percent salary increase over the life of the five year contract. The airline’s 11,000 pilots reportedly were negotiating not just for better pay, but also for improved retirement benefits and disability insurance along with a revised scheduling process.
Little did we know that the pilots were successful in improving their retirement benefits by negotiating a key new benefit that includes life income: a cash balance pension plan.
In 2025, will more employers look at strengthening their retirement benefits and offering pensions? Read more in Dan Doonan’s latest Forbes column.
Pensions Support a Stable, Experienced Public-Sector Workforce
Public pensions help government employers retain experienced career workers, reducing costly turnover and supporting the reliable delivery of essential public services, according to a report, Workforce Turnover and Retention in the Public Sector: Insights from Public Pension Plans. The research finds that while employee departures are concentrated in the first five years of service, retention is strong among workers who remain beyond that point.