Final answer:
In an endorsed retiree plan, the employer does not contribute to the premium but may negotiate the benefits and rates, whereas in a subsidized plan, the employer does contribute to the premium. Increasingly, employers favor defined contribution plans like 401(k)s over pensions, while federal programs like Social Security and Medicare provide additional retirement support.
Step-by-step explanation:
In an employer/union-sponsored group retiree plan, specifically a subsidized plan, the employer contributes to the premium. However, with an endorsed plan, the employer does not contribute to the premiums but may help negotiate the plan benefits and rates. Instead, retirees pay the premiums, but they may benefit from group rates and possibly better coverage options due to the endorsement. Employers are increasingly moving away from defined benefit plans, like pensions, and are adopting defined contribution plans, such as 401(k)s and 403(b)s. In these retirement plans, both employers and employees contribute a fixed amount regularly, and these funds are invested in a variety of vehicles. These plans are advantageous because they are tax-deferred and portable, meaning employees can take their retirement savings with them when switching employers.
Besides these private retirement options, there is also pension insurance provided by the Pension Benefit Guarantee Corporation for companies offering pensions, and public programs like Social Security and Medicare that provide retirement income and health care benefits to seniors.