Headlines about "Distributions - phased retirement"

Gathered from the web by the editors at BenefitsLink.com.
Text of CRS Report for Congress: Older Workers -- Employment and Retirement Trends (Updated Sept. 15, 2008) (PDF)
19 pages; updated September 15, 2008. Excerpt: "Rather than reduce the normal retirement age in their pension plans, some employers would prefer that Congress amend the Internal Revenue Code to allow inservice pension distributions to employees who have reached the plan's early retirement age (or some age between the early retirement age and 62). . . . Amending the Internal Revenue Code to permit in-service distributions at the early retirement age would alter incentives to work or retire, as well as how much to work and for whom to work. Consequently, it would affect both labor force participation and hours worked among older employees. The net effect of these changes in labor force participation and hours worked would be almost impossible to predict." (Congressional Research Service, U.S. Library of Congress)

Employee Benefits Security Administration Notice of Meeting: Advisory Council on Employee Welfare and Pension Benefit Plans
Excerpt: "[T]he Working Groups assigned by the Advisory Council on Employee Welfare and Pension Benefit Plans to study the issues of (1) The spend down of retirement assets, (2) hard to value assets/target date funds, and (3) phased retirement, will hold a public teleconference meeting on September 29, 2008." (U.S. Employee Benefits Security Administration)

[Opinion] Testimony on Behalf of the American Benefits Council before DOL ERISA Advisory Council Working Group on Phased Retirement (PDF)
5 pages. Excerpt: "[E]mployers are interested in implementing phased retirement programs -- more aptly labeled 'flexible retirement' programs -- that enable olderemployees, who might otherwise retire, to remain actively employed either on a parttime or full-time basis." (American Benefits Council)

[Opinion] U.S. Chamber of Commerce Testimony before the ERISA Advisory Council on Phased Retirement (PDF)
8 pages. Excerpt: "The barriers to phased retirement include legal, fiscal, policy, and practical issues.fThere are legal restrictions on when benefits can be paid out, there are fiscal concerns surrounding the costs associated with employing older workers, such as increased pension payments and perceived increases in health care costs, and there are policy and practical concerns about how accruals should be calculated during phased retirement or how to apportion the payout. Overlying all of these barriers is a concern about fiduciary responsibilities and ensuring that a phased retirement program benefits workers without creating unintended consequences or onerous liabilities for plan sponsors." (U.S. Chamber of Commerce)

Changes Needed to Aid Phased Retirement Programs
Excerpt: "The Department of Labor, Internal Revenue Service (IRS), Congress and employers will need to work together to enable the much-needed implementation of phased retirement programmes, a senior consultant has claimed. Speaking before the ERISA Advisory Council Working Group on Phased Retirement, which is examining the need for an improved system of phased retirement opportunities . . . ." (Global Pensions)

In Italy, Employee Benefits and Pension Regulations Modified
Excerpt: "New regulations passed recently will require employers to revise the amount of benefits they pay their employees. The laws, which modify working time specifications, resignation procedures and phased pension payments, aim to cut bureaucracy and simplify procedures." (Watson Wyatt Worldwide)

Phased Retirement Encouraged by PPA, But Companies Slow to Adopt
Excerpt: "Hewitt recently surveyed more than 140 midsize to large employers and found that only 5 percent have formal phased retirement programs. While not many consider it a major need now, three times as many said it might be valuable in five years as the exodus of boomers from the workplace increases." (Martha Hamilton, published by AARP BulletinToday)

[Official Guidance] ERISA Advisory Council to Meet in D.C. Next Month; Open to Public, Comments Accepted; September 2 Deadline (PDF)
Excerpt: "The focus of the Working Group meeting on September 9 will be on phased retirement, including issues facing employers who wish to create phased retirement plans, as well as the issues facing employees who wish to take part in phased retirement programs, and whether there are any legal impediments that discourage American workers from continuing to work in their retirement years. The focus of the Working Group meeting on September 10 will be on spending down retirement assets, including the issues and barriers facing plan fiduciaries, plan sponsors, and plan participants as they attempt to evaluate approaches that guarantee periodic income levels at retirement. The focus of the Working Group meeting on September 11 will be on hard to value assets and target date funds, including potential risks and the roles of fiduciaries, trustees, investment managers, accountants/auditors and participants when employee benefit plans invest in hard to value assets, a review of regulatory policy involving assets for which there is not a generally recognized market, and challenges and risks associated with plans' use of target date funds." (Employee Benefits Security Administration, U.S. Department of Labor)

Retiring Baby Boomers Prompt Increased Employer Interest In Phased Retirement
Excerpt: "With 25% of the work force nearing retirement age, an increasing number of companies are considering implementing phased retirement programs, according to a recent survey conducted by Hewitt Associates." (Wolters Kluwer)

Employers Showing More Interest in Phased Retirement Programs, Hewitt Says
Excerpt: "'For many years, employers have focused on the perceived legal barriers to phased retirement, but changes made by Congress in 2006 reduced some of the legal constraints,' said Steinberg. 'More importantly, as employers really dig into the design of phased retirement programs, they realize that the legal barriers may not be nearly as significant as internal -- or primarily cultural -- obstacles.'" (Wolters Kluwer)

Retiring in Stages: Boomers Get More Options
Excerpt: "A study released Wednesday by Hewitt Associates found 61 percent of U.S. companies have or will develop programs that let workers retire in stages. The programs are intended to hold onto the experience of baby boomers, and ease the difficulty of replacing their skills. The study included 140 mid-size and large-size companies." (AP via The New York Times; free registration required)

Companies not Actively Pursuing Ways to Ease Boomer Brain Drain
Excerpt: "A recent study by the Institute for Corporate Productivity (i4cp) finds that most companies are not looking for ways to keep the accumulated knowledge of baby boomer employees under their wings. The study found that 77% of responding organizations do not have a phased retirement program - allowing an employee who is approaching retirement to continue employment with a reduced workload." (PLANSPONSOR.com; free registration required)

[Guidance Overview] Weighing Pros and Cons of Phased Retirement Plans
Excerpt: "Such innovative plans, only recently addressed by pension legislation, allow employees to stage their retirement benefits and dates along with work responsibilities. Employees get flexibility, and employers extend workforce numbers and boost knowledge transfer- the valuable sharing of knowledge and experience from senior employees to junior employees." (Employee Benefit News; free registration required)

Working Past Retirement Age Can Pose Problems
Excerpt: "[W]hat workers with defined-benefit pensions and those who already have tapped Social Security benefits might not realize is that there are significant financial disincentives that make working into retirement age a tricky proposition." (The Wall Street Journal via The Dallas Morning News)

Older Staffers Get Uneasy Embrace
Excerpt: "Surveys by Boston College's Center for Retirement Research found that employers expect about a quarter of employees currently in their 50s will want to work two to four years longer than past workers. Then employers were asked if they would accommodate half those who wanted to work later. 'On a scale of 1 (unlikely) to 10 (likely), the median response was a lukewarm 6,' the researchers say." (The Wall Street Journal)

Senate Aging Committee Leaders Introduce Bill Allowing Phased Retirement Under Narrow Circumstances
Excerpt: "Employers would be able to offer phased retirement programs to their employees under Senate legislation introduced this week, but they would not be able to limit the groups of employees eligible to participate. The Incentives for Older Workers Act (S. 2933), introduced by Sens. Gordon Smith (R-OR) and Herbert Kohl (D-WI), contains a number of provisions seeking to keep older workers in the workforce." (HR Policy Association)

[Opinion] Older Workers: Federal Agencies Face Challenges, But Have Opportunities to Hire and Retain Experienced Employees (PDF)
30 pages. Excerpt: "The Chairman of the Senate Special Committee on Aging asked GAO to discuss (1) the age and retirement eligibility trends of the current federal workforce, (2) the strategies federal agencies are using to hire and retain older workers, and (3) our observations on how these strategies position federal agencies to engage and retain older workers." (U.S. Government Accountability Office)

Text of ''Incentives for Older Workers Act'' (PDF)
14 pages. Excerpt: "To improve the employability of older Americans." (U.S. Senate via American Benefits Council)

Official Summary of 'Incentives for Older Workers Act' (PDF)
2 pages. Excerpt: "Under this proposal, the average compensation taken into account under a defined benefit plan may not be reduced by reason of a participant's phased retirement. More specifically, the proposal would apply to any participant in a defined benefit plan (1) who has attained age 50 or 30 years of service, (2) who begins working on a reduced schedule or with modified responsibilities, and (3) whose compensation is reduced by reason of such reduced schedule or modified responsibilities." (U.S. Senate via American Benefits Council)

Whitworth University Professors Set to Try Phased Retirement
Excerpt: "The administration is developing a phased retirement program for tenured faculty who have taught full time for a minimum of 15 years. The plan is a mutual agreement between the individual faculty member and the university, according to the draft of the phased retirement plan. The faculty member must initiate the process . . . ." (The Whitworthian)

Workers, Employers Adjust to Phased Retirement
Excerpt: "[O]nly about one-quarter of companies allow all or most workers to phase into retirement. There are tax questions and challenges around retirement benefits. For example, for employees who are phasing out, how much do they need to work? When can they start drawing on their retirement benefits while still working? How much can they take out? Do they have to leave the company and then come back as a temporary employee?" (Morning Edition via National Public Radio)

[Opinion] Interview with Roy Krause on Trend Toward Putting Consultants on Payrolls
Excerpt: "Q. We are hearing a lot about the retirement of the baby boomers creating job shortages, as soon as 2010 or 2011 by some estimates. How would a recession affect this phenomenon?" (The New York Times; free registration required)

Current Strategies to Employ and Retain Older Workers. (PDF)
47 pages. Excerpt: "The findings indicate that as older adults are becoming an increasingly important labor source due to demographic changes, employers are beginning to tailor their programming and services to individuals age 50 and older. For employers, the challenge is to develop workforce policies that appeal to older workers without sacrificing productivity. This report explores employer strategies such as flexible work arrangements and phased retirement plans. It also includes additional resources focused on job search assistance and training." (U.S. Department of Labor, Employment and Training Administration)

In Canada, Phased Retirement Programs Get a Lift from Government
Excerpt: "Canada's federal government is backing legislation that includes amendments to the federal income tax regulations that would give sponsors of defined benefit (DB) pension plans greater flexibility in designing phased retirement and other retention programs starting in 2008." (Towers Perrin)

Easing into Retirement
Excerpt: "[Y]ou may have a great deal of leverage to name the conditions under which you want to continue working. You may find that your employer would be thrilled to have you stay on board as a part-time employee, even if it means continuing to pay for employee benefits like health insurance. By remaining open to creative solutions while keeping your resolve to get what you want from your final years of work, you may be able to negotiate an arrangement that will make both you and your employer happy." (The Money Times)

In Canada, New Law on Phased Retirement Approved
Excerpt: "Workers who choose to phase in their retirement will be eligible to receive pension payments and continue to accrue benefits under broader budget legislation approved by the Canadian government on December 14, 2007. The new law, effective immediately, could provide a valuable financial tool to help employers compete in a tight labor market and retain skilled workers." (Watson Wyatt Worldwide)

Audio: Report From the 'Other' Washington -- What Is Happening on the Employee Benefits Agenda
Approximately one hour; emphasizes proposed federal healthcare legislation. available for a limited time from the International Society of Certified Employee Benefit Specialists. Presented at the ISCEBS 27th Annual Symposium. Additional selected audio presentations are online at http://www.iscebs.org/Symposium/default.asp#listen (James A. Klien)

U.S. Chamber of Commerce Statement for Hearing on Securing Retirement Coverage for Future Generations (PDF)
7 pages. Excerpt: "In order to secure retirement coverage for the future, it is necessary to remember that there are several components to the retirement 'stool.' While this has often been referred to as a 3-legged stool consisting of Social Security, individual savings, and employer-provided pensions, we believe that there may be a potential fourth leg -- phased retirement. For a variety of reasons, many Americans are remaining in the workforce beyond what was traditionally thought of as retirement age. Thus, phased retirement should also be considered when discussing retirement security." (U.S. Chamber of Commerce)

Overview: New IRS Normal Retirement Age Regulations an Increasing Source of Concern
Excerpt: "The new regulations (which, for a governmental plan, will apply for plan years beginning on or after January 1, 2009) will now permit a pension plan (a defined benefit plan or money purchase pension plan) to pay benefits upon an employee's attainment of normal retirement age, even if the employee has not yet had a severance from employment with the employer maintaining the plan." (National Council on Teacher Retirement)

CRS Report to Congress: Consumer Spending by Older Americans, 1985 to 2005 (PDF)
72 pages. Excerpt: "Because of the demographic trend toward an older population and the decline in income that occurs as people leave the labor force for retirement, both the amount and the composition of consumption spending by American households could change substantially as the 76 million members of the baby boom reach retirement age. As Congress considers reforms to Social Security, Medicare, Medicaid, tax-deferred retirement savings plans, and other programs that provide income and benefits to older Americans, it may be helpful for policymakers to consider how older individuals spend their income and how this spending has changed over time." (Congressional Research Service, U.S. Library of Congress)

Overview: IRS Guidance on In-Service Payments from Pension Plans (PDF)
3 pages. Excerpt: "Generally, defined benefit and money purchase pension plans cannot pay benefits to participants before retirement. However, a provision in the Pension Protection Act of 2006 (PPA) allows pension plans to make in-service payments to employees who have reached age 62. These in-service payments are first available for plan years beginning after December 31, 2006." (Prudential Financial)

Working Paper: Is Retirement Being Remade? Developments in Labor Market Patterns at Older Ages
Excerpt: "This chapter investigates non-traditional work and retirement patterns among older individuals in the Health and Retirement Study. We first review the evidence on retirements that initially involve bridge jobs or some form of partial retirement. We then focus our analysis on retirement reversals in which individuals resume or increase work activity following a period of retirement. . . . We explore the characteristics of the individuals who make these types of transitions." (Pension Research Council; registration required to download fulltext of paper)

Legal Considerations When Implementing Phased Retirement Plans
Excerpt: "In light of the legal uncertainties, employers considering a phased retirement program should consult actuaries and legal counsel. Benefit programs, particularly defined benefit plans, should be reviewed to determine what actions employers will take to comply with legal requirements and make their phased retirement program successful." (Employee Benefit News; free registration required)

Retirement Anxiety -- Emotional Issues, Financial Issues and the Importance of Human Capital
Excerpt: "Bob Veres, publisher of Inside Information, sees retirement as a brief historical anomaly. 'The whole idea of retirement as a total secession from work -- as opposed to making work optional -- may be an artifact of a single generation. Someday we'll look back and say that this was a waste of human capital, and a very poor way to keep people active and relevant during their later years.'" (Financial Planning and SourceMedia, Inc.)

CRS Report for Congress: Older Workers -- Employment and Retirement Trends (Updated Sept. 7, 2007) (PDF)
19 pages. Excerpt: "Several approaches to phased retirement -- job sharing, reduced work schedules, and rehiring retired workers on a part-time or temporary basis -- can be accommodated under current law. Under the recently enacted Pension Protection Act, a pension plan can begin to pay benefits to workers who have not yet separated from the employer at the earlier of age 62 or the pension plan's normal retirement age, which in most plans is 65. Some employers would like to be able to pay partial pension distributions to workers who have reached the pension plan's early retirement age. This would require a change in federal law." (Congressional Research Service, U.S. Library of Congress)

Text of IRS Employee Plan News - Special Edition (August 2007) (PDF)
3 pages. Excerpt: "This Special Edition announces that the 2007 Interim and Discretionary Amendments are now available. Also in this Special Edition, new FAQs added for the preapproved and individually designed plan program, the 2007-2008 Priority Guidance Plan is now available, the definition of 'Normal Retirement Age' has changed, and Requirements for 'Separate Agreements' for Section 412(i) Pension Plans." (Internal Revenue Service)

Overview: IRS Temporary Relief from Regs Permitting In-Service Distributions on Attainment of NRA
Excerpt: "The IRS has issued a Notice providing temporary relief from certain provisions of recently-issued final regulations that permit pension plans to commence payment of retirement benefits prior to the participant's severance from employment, as long as the participant had attained 'normal retirement age.'" (Wolters Kluwer Law & Business)

Overview: IRS Finalizes Restrictions on Normal Retirement Age in Pension Plans
Excerpt: "The IRS recently released final regulations on phased retirement that restrict a plan's normal retirement age (NRA) to an industry-based typical retirement age and establish certain safe harbors for in-service distributions." (Watson Wyatt Worldwide)

Overview: IRS Provides Temporary Relief for Normal Retirement Age Amendments (PDF)
3 pages. Excerpt: "The IRS recently issued final regulations defining normal retirement age (NRA) for defined benefit or money purchase pension plans, including for purposes of benefit accrual and minimum vesting rules under Internal Revenue Code Section 411." (Buck Consultants)

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