Pensions are going the way of the Dodo bird. The dodo is an extinct flightless bird that was endemic to the island of Mauritius in the Indian Ocean. Pensions as a reward for decades of service, are heading that way. A survey released earlier this year by benefits consultant Aon Hewitt of nearly 250 employers representing 6 million employees found that, of the roughly three-quarters who still offer a defined benefit pension plan, a third were closing them and another third had frozen them.
Of the companies with plans that remained open, 14 percent of companies said they were "very likely" to close them this year, 9 percent said they were "very likely" to freeze them and 5 percent said there were very likely to terminate them. Companies terminating plans typically offer participant a lump sum payout to replace the monthly defined benefit income. Steve and Sinclair review a CNBC report. In the Q & A segment, CPA Nick Stefaniak joins the A Team to discuss year end tax planning and a special offer for Mastering Money listeners.