Headlines about "Ret plans - policy"
Gathered from the web by the editors at BenefitsLink.com.
Before It's Too Late: A Retirement Security Newsletter from Phyllis Borzi, May 20, 2013
"How do I make sure I don't run out of money in retirement? It is one of the most common questions -- and fears -- that arise.... A retirement account balance may seem like a very large amount of money, but seeing that broken down to an estimated lifetime stream of payments can be sobering." (Employee Benefits Security Administration)
Sens. Harkin, Alexander Initiate HELP Committee Investigation into Pension Lenders
"As an initial matter [the Committee is] seeking [National Association of Attorneys General (NAAG)]'s assistance in identifying the number of victims of improper and/or deceptive pension purchasing schemes and information about any enforcement actions taken. We also seek NAAG's assistance identifying which companies are offering these products and where they are incorporated as well as how these arrangements are structured." (Committee on Health, Education, Labor & Pensions, U.S. Senate)
[Opinion] Statement of Senator Tom Harkin on Improving Retirement Security
"I know from my constituents that the dream of a secure retirement is growing fainter and fainter.... [M]ost Americans are deeply worried that they will not have enough money to live on when they stop working. They're right to be deeply worried.... That's why I put out a proposal to ensure that every working person has automatic access to a secure retirement plan." (Committee on Health, Education, Labor & Pensions, U.S. Senate)
Retirement Security Across Generations
"This report explores how the Great Recession affected the wealth and retirement security of baby boomers relative to younger and older age groups.... Early boomers (born between 1946 and 1955) were approaching retirement in better financial shape than the age groups that came before them.... The picture of wealth accumulation and savings for Americans born after 1955 was more mixed.... Both cohorts of baby boomers and the Gen-Xers have significantly lower asset-to-debt ratios than do the older groups.... All groups experienced wealth losses in the Great Recession, but Gen-Xers took the hardest hit.... Replacement rate analysis shows that the youngest cohorts will not have enough assets for a secure retirement." (Pew Center on the States)
Cypen & Cypen Newsletter, May 16, 2013
Articles include: [1] NASRA issue brief treats state and local government spending on public employee retirement systems; [2] Has DC plan design come full circle? [3] What to know before selling pension/settlement income streams; [4] Pension funds with the highest equity allocations; [5] Pension funds with the largest hedge fund portfolios; and [6] Thirty-fourth annual police officers' and firefighters' pension trustees' school. (Cypen & Cypen)
[Guidance Overview] DOL Considering Requiring DC Plans to Provide Lifetime Income Illustration (PDF)
"According to the DOL, the assumed 3% annual increase in the rate of future contributions is based on an expectation that wages, particularly for younger workers, will increase at an even higher rate.... However, for those individuals already contributing the maximum elective deferral amount to a 401(k) plan, this assumption may be too high when inflation is lower than 3%. Similarly, a 7% rate of return may not be achievable for employees near retirement age who invest more conservatively and may create an unreasonably high projected retirement annuity." (PricewaterhouseCoopers)
Six Reasons a 401(k) Is Better Than a Pension
"[B]lindly claiming that the pre-401(k) days are better is just inaccurate, because there are plenty of reasons the do-it-yourself system is better. Here are a few to consider: Not every employer offered pensions, even when they were popular.... The assets in 401(k)s vest much sooner, and you own the funds.... You can control taxes a little better with an IRA or 401(k).... If you really need it, you have access to the money.... There's a chance that your heirs will get some money.... Your 401(k) plan may have high fees, but low-cost investments are possible." (U.S.News and World Report)
[Opinion] A Bad Idea: Obama's Proposed Cap on Retirement Savings
"The President's cap on retirement savings would set a bad precedent by establishing the false premise that retirement savings accounts should be capped. This could start a misguided descent down a slippery slope that would end up making middle-class retirements less secure.... Congress should allow taxpayers to save as much as they can every year tax-free for any purpose with no cap on the total value of their savings. They would pay tax only when they withdraw their savings to spend for whatever purpose they choose." (The Heritage Foundation)
What Is Derailing Retirement for the Baby Boomers?
"Retired and pre-retired Americans report they've lost, on average, $117,000 in retirement savings because of events that they did not anticipate ... Over half those surveyed (57%) expressed regret about not beginning to save earlier. About a third (37%) admitted to believing they would be in better financial shape if they knew more about investing. Three in ten (29%) said a written financial plan would have helped them be in better shape for retirement." (PLANSPONSOR.com)
The Changing Face of Retirement Worldwide: The Aegon Retirement Readiness Survey 2013
"The 2013 [Aegon Retirement Readiness Index (ARRI)] scores show a decline from those in 2012. The total ARRI score dropped from 5.19 out of 10 to 4.89, with all 10 countries surveyed in 2012 registering a decline. Although in some countries there are now some signs of recovery from the economic crisis, the change in ARRI scores across the board was negative....Nearly two-thirds (64%) of respondents believe that future generations will be worse off in retirement than current retirees." (AEGON)
[Opinion] The 401(k) Debate
"The shift to 401(k) plans comes across as a harmful move by U.S. employers. Yet the move to defined contribution plans (the general term for these plans) has been a global phenomenon ... The complexity and decision overload described in the documentary are becoming passe .... The documentary missed the critical role played by employers in overseeing their plans; it also overlooked the fiduciary rules they must follow." (Vanguard)
California's State-Run Retirement Program for Private Employees vs. the 'Retirement Tsunami'
"The California program aims to create an effortless savings vehicle for an underserved population. Three-quarters of eligible workers make less than $46,420 per year, putting them into a demographic that relies heavily on Social Security in retirement. The new law won't end reliance on Social Security, but it could provide workers with additional financial security. The program is designed to be privately run and managed, ideally at no cost to the state." (The Atlantic)
Optimistic About Their Financial Futures, Gen Y Saving Earlier and Planning Now for Retirement
"In addition to saving more aggressively and earlier, Gen Y is also optimistic about their retirement savings potential. Today, Gen Y mass affluent believe they will save on average nearly $2.5 million for their retirement, compared to those working mass affluent ages 51-64 who anticipate saving just $260,000." (Bank of America / Merrill Lynch)
Exchanging Delayed Social Security Benefits for Lump Sums: Could This Incentivize Longer Work Careers?
"This paper explores whether allowing people to receive a lump sum as a payment for delayed retirement rather than as an addition to their lifetime Social Security benefits might induce them to work longer.... Our base case indicates that workers given the chance to receive their delayed retirement credit as a lump sum payment would boost their average retirement age by 1-1/2 to 2 years." (University of Michigan Retirement Research Center)
[Opinion] Retirement Savings Ideas from Washington Are Mixed Bag
"[S]everal proposals are being floated in Congress to expand retirement savings for workers who don't have access to a plan, but are currently stalled because of partisan disagreement and deficit concerns.... [A]ction at the state level could eventually push forward a federal effort. The legislative activity is further evidence that retirement plan coverage and readiness is a public care that has gathered interest in the political realm[.]" (Vanguard)
[Opinion] So How Do We Make Retirement Less of a Gamble?
"The advice to participants to request formal acknowledgment from their financial advisors of their status as a 'fiduciary' is dubious at best (for one problem, it's unlikely the average participant could draft a meaningful fiduciary contract). Smith's piece does not reflect the recent legislative and litigation efforts -- enhanced fee disclosure, increased fiduciary responsibilities -- which, while slow to develop and long overdue, are nonetheless beginning to address the very problems Smith laments." (Retirement Town Hall)
[Opinion] President Proposes IRA Changes
"The proposal amounts to killing a mosquito with a sledgehammer, based on the following three considerations: [1] This proposal would require an entirely new information-gathering and enforcement mechanism.... There are probably thousands of [people] who have accumulated 'too much,' but that's a drop in the bucket compared to the millions and millions who have 'too little.' So this newly created giant dragnet will snare just a few people.... if their IRAs are already that large, they don't want to put more in anyway!" (Natalie Choate for Morningstar Advisor)
[Guidance Overview] DOL Proposes to Include 'Lifetime Income Illustrations' in Benefit Statements (PDF)
"Although the ANPRM only addresses a narrow issue presented under ERISA section 105 -- that is, how to present a description of a participant's 'total benefits accrued' under a [DC] plan, it is better understood as a next step in a broader DOL initiative to facilitate access to 'lifetime income options' that could provide a lifetime stream of income after retirement to American workers who now primarily save for retirement through [DC] plans." (Groom Law Group)
New Lawsuits Challenge Church Plan Exemption from ERISA Claimed by Catholic Hospitals
"Over the last 5 weeks ... individual lawsuits [have been filed] against four mega non-profit hospital conglomerates alleging that they are not entitled to the Church Plan exemption under ERISA. Each defendant is alleged to have violated the minimum funding, notice, plan document, trust, and fiduciary rules of ERISA in sponsoring their defined benefit pension plans.... In total, the plaintiffs allege at least $2.1+ billion in underfunding, plus unspecified other damages[.]" (Plan Tools, LLC)
[Opinion] Pensions and Politics: Lack of Retirement Readiness Could Mean Big Changes
"[T]he retirement issue is getting closer to the point of no return. Politicians will jump in to allegedly save the day. Part of the problem is that there is a battle of interests with few constituencies aligned to move in the same direction. When this occurs, a central authority typically intervenes.... How will politicians respond to younger persons who do not want to shoulder the high costs of social safety net programs and seniors who want them?" (Pension Risk Matters)
Status of Pooled Registered Pension Plans in Canada
"The PRPP is intended to provide a 'low cost' and accessible retirement savings vehicle for Canadians who do not currently participate in an employer sponsored pension plan.... While PRPPs are not yet available in any jurisdiction other than the federal jurisdiction, as I discuss below, a number of provinces have either drafted legislation introducing PRPPs or have indicated that they are considering introducing legislation to implement them." (Osler, Hoskin & Harcourt LLP)
The Proposed Pension Cap: Who Would Really Be Affected?
"Most taxpayers and employers aren't actuaries. Who is going to convert IRA and 401(k) balances into equivalent annuities? How are employers supposed to get information about benefits provided by prior and future employers? How will investment performance affect the limits? Investment earnings could continue under the proposal without regard to the cap, but what if there is a negative return or an investment's value sharply declines? What if additional contributions are permitted for a temporary loss, and then the investment rebounds?" (Osler, Hoskin & Harcourt LLP)
[Opinion] U.S. Needs Mandatory Retirement Savings Plan Like Aussie Superannuation System
"The U.S. should implement a form of mandatory savings, akin to Australia's superannuation system, because Social Security, defined benefit plans and defined contribution plans aren't providing, in aggregate, a comprehensive foundation for retirement, Laurence Fink, chairman and CEO of BlackRock, said ... Mr. Fink said he didn't have a specific plan, adding that he wasn't recommending the abandoning of current retirement plans.... Any mandatory retirement system would have to be phased in, he added." (Pensions & Investments)
[Opinion] Why Frontline's 'The Retirement Gamble' Is Important
"[1] It highlights a critical problem that affects 90 million Americans who invest in the $13 trillion mutual fund industry. [2] It highlights three problems which are widespread, but not often publicly discussed: the impact of high mutual fund and 401(k) fees; the conflicts-of-interest that prevail in the financial industry sales and advice industry; and wealth destruction. [3] It presents the problem facing millions of Americans who face a financially insecure retirement future [4] It addresses how millions of unprepared investors are now engaged in a do-it-yourself retirement planning process. [5] It shows how employers have transferred all retirement planning and investment risks, and most of the costs, to their employees." (MutualFundReform.com)
[Opinion] Bold 401(k) Overhaul Proposal from Knight Kiplinger
"There's no longer any debate over whether working Americans are accumulating enough savings and employer contributions, supplemented by Social Security, to live comfortably in retirement. Indisputably, they are not, and the matter is getting critical.... Fortunately, scrapping the present system isn't necessary. Reform would be enough -- as long as it's a bold overhaul, not just tinkering around the edges." (Kiplinger)
[Opinion] Proposed Cap on IRAs, 401(k)s Is Hardly Onerous
"Obama isn't keeping people from saving as much money as they can or want. The question is how much the rest of us should have to chip in. Obama is suggesting that at some point retirement accounts, invented to encourage working people to set aside enough for their sunset years, no longer need a helping hand from taxpayers" (Arizona Daily Star)
Boomers Usher in New Retirement Reality
"When it comes to retirement, baby boomers are favoring lifestyle choices over wealth preservation, bucking the traditions of the generations that came before them.... The majority of the baby boomers surveyed said they see retirement as a 'longevity bonus' or a period of time when they can pursue other interests outside of their career.... 57% said they look at retirement as a new life phase, while 51% of respondents who have not retired yet said they plan to keep working into retirement, but in a different field of work." (On Wall Street)
Advantages to Pre-Tax Deferral of Income in an Uncertain Tax Environment (PDF)
"[I]n all but a few scenarios, even if taxes do rise in the years ahead while working or during retirement, the accumulated savings that may be achieved over the long term through deferral of income and related taxes under [a nonqualified deferred compensation] plan are still greater than the amount that could be accumulated through after-tax investing in a personal investment account." (Fulcrum Partners)
[Opinion] For Want of a Nail: Thoughts on 'The Retirement Gamble'
"[W]ait, haven't we heard this story before? Yes, we have. On May 16, 2006, Frontline ran an amazingly similar story entitled "Can You Afford to Retire?" (archived on www.pbs.org). Some of the same industry experts even appear in both documentaries. The same problems were highlighted and there were the same subsequent calls for change. And what changed after that? Clearly, not much." (Advisors Access)
Americans' Perspectives on New Retirement Realities and the Longevity Bonus
"[A]chieving peace of mind is seven times more important than accumulating wealth (88 percent and 12 percent, respectively) to adults age 45 and older ... [R]etirement has been redefined -- with people expecting to live and often work longer than any preceding generation, and taking different approaches to preparing for and living their best life during these years." (Merrill Lynch)
[Opinion] Retirement As a Cultural Concept Needs to Go Away
"Retirement as a national cultural concept arose because of concerns contingent to the Industrial Revolution... These conditions no longer obtain today.... Retirement is a little death.... The way we're dealing with old people today is not working and we need to get more imaginative.... Generational warfare on the young is, like, not good.... A truly flexible labor market would be truly flexible.... If poor people die sooner, that's not a retirement problem.... The safety net system should deal with problems qua problems and not age-based classes." (Pascal-Emmanuel Gobry, in Forbes)
California Dreaming: The California Secure Choice Retirement Savings Trust Act
"Contrary to the drafters' intent, the savings accounts authorized under the [California] Act do not qualify as individual retirement accounts under the Code. Hence, employees participating in savings arrangements established under the Act will not receive the income tax benefits associated with individual retirement accounts.... [T]he Act should survive ERISA preemption if [it] is amended to have true individual retirement accounts.... President Obama has recently proposed a federal mandate under which employers with more than ten employees would be required to maintain either retirement plans or IRA coverage.... The Golden State�s Act will play an important role in that debate." (Prof. Edward A. Zelinsky, via SSRN)
Cypen & Cypen Newsletter, May 2, 2013
Article titles include: [1] Frontline does a number on 401(k) plans; [2] Why 401(k)s have failed; [3] Fitch's local government pension analysis; and [4] Revised 60's hits for baby boomers. (Cypen & Cypen)
Frontline Producer Explains Controversial 401(k) Documentary (Part 4 of 4)
"That so many believed 'The Retirement Gamble' didn't feature the importance of savings suggested the show's producers might have been unfamiliar with a 2012 Wharton Study that concluded savings were more important than asset allocation when it comes to retirement success.... Is it possible, rather than assume personal accountability for his plan's failings, Smith has instead chosen to blame Wall Street? ... As of result of Smith's public admission regarding his personal 401k difficulty, the [Plan Sponsor Council of America (PSCA)] offered him free membership. When FiduciaryNews.com asked Smith if he'd take the PSCA up on their offer, he said, 'No, I don't think so.' Again, is it the failure to take responsibility that prompts this response, or the bitterness and lack of trust after having been a victim?" (Fiduciary News)
401(k) World: A Deeper Look into Tom Friedman's Nightmare
"What's created in a 401(k) world other than companies that are gradually unburdened by health and retirement expenses? A void. Retirees won't have enough to live a comfortable lifestyle in their most vulnerable years. Either old-age poverty increases dramatically like it did before the New Deal/Great Society programs like Medicare kicked in, or the government steps up to help people save for retirement and blunt the oppressive risk of being bankrupted by health-care expenses." (John Wasik in Forbes)
Top Treasury Official Defends 401(k) Tax Proposal
"Mary John Miller, a veteran of the asset-management industry who now serves as Treasury's under secretary for domestic finance ... began with the premise that any effort to bring the nation's fiscal situation into order must include a mixture of spending cuts and revenue increases, noting that the cap on the 401(k) tax break is projected to generate some $9 billion in revenue over the next 10 years.... [She] pointed to a widening gap between the very wealthy and the rest of the population, noting that the proposed modifications to retirement plan taxes would only affect a fraction of 1% of the country." (On Wall Street)
Canadian Plan Sponsors Confident in Retirement Benefits
"95% of plan sponsors [in Canada] are 'somewhat or very confident' in the competitive position of their plan and see it as a key priority; 59% are likely to assess retirement program design during 2013; 83% will review plan member communication material; and 12% are 'very confident' that employees are taking accountability for their retirement future." (PLANSPONSOR.com)
Employee Ownership Update, May 1, 2013
NCEO Executive Director Loren Rodgers discusses a new study on the impact of S Corporation ESOPs, S Corporation ESOP legislation in the Senate, The Plan Sponsor Council of America Survey on DC Plans, and the recent NCEO/Beyster Institute Conference. (National Center for Employee Ownership)
Profits Take the Day As Fewer Employers Match Kick-Ins to 401(k)s
"The number of firms offering workers a matching contribution in their corporate 401(k) retirement plans fell by about 5% in 2010 and another 2% in 2011, according to a [recent] survey ... About 42% of the nation's companies that offer a 401(k) plan also matched a portion of their employees' contributions in 2011 ... About 6% of the corporate retirement savings plans that existed in 2009 were terminated in 2010 or 2011 ... About 472,625 401(k) savings active plans existed through 2011[.]" (Investment News; free registration required)
Franczek Radelet Monthly Benefits Update, April 2013
Articles include: [1] Health Care Reform Guidance on Required Future Modifications to SBC, for Employers Contributing to Multiemployer Welfare Plans and for Individuals Seeking Health Insurance Premium Tax Credit; [2] United States Supreme Court Decision: US Airways Inc. v. McCutchen; [3] Obama Administration Revenue Proposals Affecting Retirement Savings; [4] PBGC Proposed Rule on Reportable Events. (Franczek Radelet P.C.)
One in Three European Pension Funds Highlight Difficulties in Keeping Pace with Regulatory Developments
"[S]ince the financial crisis, one in three European pension [plans] claims it is either 'extremely difficult' or 'difficult' to keep up with new regulatory developments in the pensions industry.... [O]nly one in five (21 percent) [say] it is not difficult at all.... [O]nly 21 percent of those interviewed said that demands from regulators and ratings agencies were not a challenge. Some 31 percent said they were a 'significant challenge.'" (State Street Corporation)
[Opinion] Obama Has a Sweet Retirement Package. Will You?
"$205,000 a year -- the current IRS maximum for what a pension fund can pay a recipient -- is serious money in many places. But it doesn't buy you a rich retirement lifestyle in, say, Manhattan, N.Y., where 205K is equivalent to only 88K in Manhattan, Kans.... Second, ... Obama [wants] to limit savers to only about half the value of what he stands to get from his post-presidential package ... [valued] more than $6.6 million.... And that doesn't include the IRAs ... or the $18,000 (plus cost of living) a year he will get at age 62 for his service in the Illinois senate, or any other benefits he or his wife may realize from past or future jobs." (Fortune)
Frontline Producer Explains Controversial 401(k) Documentary (Part 2 of 4)
"When producer Martin Smith put together his Frontline documentary 'The Retirement Gamble,' he wanted to shock typical 401k investors out of their complacency.... In fact, if not for a sense of maintaining journalistic objectivity, Smith could have made the entire show about his own personal plight. In many ways, he's a poster child for what is wrong with the 401k business." (Fiduciary News)
[Opinion] The California Secure Choice Retirement Savings Program: An Innovative Response to the Coming Retirement Security Crisis (PDF)
"A number of steps need to be taken and key questions addressed concerning the default plan features, funding, and product design before the California Secure Choice Retirement Savings Program launches. Moreover, the dialogue surrounding the program presents an opportunity for discussion and enactment of broader structural reforms to address some of the barriers beyond account access that impede low-income workers' ability to save adequately for retirement." (New America Foundation)
[Opinion] Text of ICI Letter to Wall Street Journal on 'Worrisome Savings Killer' in Budget Proposal
"Your editorial ... correctly criticizes the impact of President Obama's proposed limit on the amount that individuals can save in tax-sheltered defined-contribution plans, defined-benefit plans and IRAs.... But the president's budget contains another, even more worrisome savings killer: a proposal to cap the value of tax-deferred retirement contributions at 28%, which may be lower than your income-tax rate. The notion is that the benefits of tax deferral, like the benefits of deductions and exclusions, should be limited for taxpayers in the top brackets." (Investment Company Institute)
[Opinion] The 401(k) Blame Game
"Critics of excessive and opaque 401(k) fees, conflicts of interest, and poor plan design may be right as far as their argument goes; but the reason that 50 million Americans may ultimately be betrayed by their 401(k) is not that mutual fund managers are overpaid, and that some advisors receive commissions. Rather it is that the 401(k) idea 'works' when incomes and stock prices are rising, and does not work when income growth and stock returns stall for a prolonged period." (Mark Fandetti via SSRN)
Presentations Made to the 'Future of Retirement' Summit (PDF)
"On April 16, 2013, the Center convened a Future of Retirement Summit to address the workforce, legal, financial, policy, and political challenges facing local and state governments as they retool their retirement benefits." [Downloadable PDFs of all presentations are available at the link.] (Center for State & Local Government Excellence)
[Opinion] Text of SPARK Comments on Budget Proposals Affecting Retirement Plans (PDF)
"The budget provisions ... are complex, they create the potential for significant unintended consequences, and will be costly to employers and individual savers. At a minimum, the proposals will increase the costs ultimately borne by all American workers trying to save for retirement, not just the higher-income workers whom the provisions target. At worst the proposals will adversely impact the availability of plans and the amounts contributed by employers, particularly among small businesses. We urge you to consider proposals that will encourage voluntary plan formation and contributions by employers instead of complex and costly provisions that will have the opposite effect." (The SPARK Institute)
[Opinion] The 401(k) Debate
"The [PBS 'Retirement Gamble' program] started with two misconceptions. The first is that most Americans aren't prepared for retirement. That's an over-exaggeration ... [W]hen you focus exclusively on that group, you do give the misleading impression that everyone is getting it wrong, which is untrue.... The second misconception was about the old defined benefit (DB) pension system ... About 4 in 10 private sector workers had pensions in their heyday, and the typical pension was modest. The system was full of risks.... And few workers were aware of these risks." (Vanguard)
More Retirees Carrying Mortgage Debt (PDF)
"Perhaps the most dramatic finding of the 2013 study is that 67 percent of pre-retirees expect to carry mortgage debt into retirement ... Also noteworthy is that 33 percent expect to carry non-mortgage debt into retirement compared to 22 and 23 percent in 2007 and 2009, respectively. Among the boomers who expect to carry any kind of debt into retirement, more than half (56 percent) expect they'll owe $25,000 or more." (Securian Retirement)
Delayed Retirements Slow Career Progression
"Many workers who were once close to retirement are staying in jobs for reasons such as poor investment results in their retirement savings. Some are continuing to work because they are supporting unemployed adult children. The scenario is making it harder for younger workers to find senior positions or advance in their current organizations. It's also creating a leadership gap that is hampering innovation at some companies[.]" (Journal of Accountancy)
[Opinion] Taxing Pensions and 401(k)s
"The challenge in retirement programs is not that employees are saving too much, it is that they are contributing too little, or not participating at all, while many employers don't offer retirement plans. The administration should focus on bolstering the retirement security of lower-level income participants and employees who lack coverage. It should scrap its proposed restrictions on retirement-plan accumulations." (Pensions & Investments)
Before It's Too Late: A Retirement Security Newsletter from Phyllis Borzi, April 29, 2013
"'The Retirement Gamble' took a look at some of the reasons so many Americans are financially unprepared for retirement.... [M]uch of the program is spent profiling regular Americans who are trying to get by and doing the best that they can to prepare for an uncertain future. The show clearly outlines the challenges faced by people trying to navigate an opaque, fractured, and confusing system." (U.S. Departments of Labor)
Making the Most of 401(k) Accounts
"[S]ome 35 years since their inception, 401(k) plans have been harshly criticized for failing to close ... a $6.6 trillion difference between what people have saved and what they need to save for retirement. ... [T]he overwhelming majority of participants in defined-contribution plans are neither professional money managers nor especially investment-savvy, putting them at a severe disadvantage when it comes to deciding how they will invest for their retirement years." (Investment News; free registration required)
Rich Retirees Should Pay Back State Benefits, U.K. Ministers Say
"Work and Pensions Secretary Iain Duncan Smith said the benefits, which include a winter fuel allowance, subsidized bus travel and free TV licenses, would not be cut and urged those who didn't need them to return them. Minister without portfolio and former Chancellor of the Exchequer Ken Clarke said they should give the money to charity." (Bloomberg)
Pension Loans Drive Retirees Into More Debt
"[T]hese offers, known as pension advances, are having devastating financial consequences for a growing number of older Americans, threatening their retirement savings and plunging them further into debt. The advances, federal and state authorities say, are not advances at all, but carefully disguised loans that require borrowers to sign over all or part of their monthly pension checks. They carry interest rates that are often many times higher than those on credit cards." (The New York Times)
[Opinion] The PBS Frontline Report on 401(k) Plans
"If the people in the industry try to pretend that nothing is wrong with the 401(k) plan industry, then they are only fooling themselves. There needs to be some sort of standard where a financial advisor doesn't get a bigger trail by pushing a specific fund. There needs to be a simple disclosure of all plan expenses and fees ... [T]he biggest problem in the 401(k) plan business isn't the mutual fund companies; it's the lack of any good investment education and/or advice for plan participants." (The Rosenbaum Law Firm, P.C.)
[Opinion] Employer-Sponsored Retirement System Provides Benefits and Protections for Employees
"Employees who do not contribute to their employer savings plan have an average retirement savings shortfall of 10.8 times pay, compared to a shortfall of just 2.2 times pay for the full-career contributor. For the average employee making $70,000, that equates to a savings shortfall of $756,000 at retirement.... [T]he employer-sponsored retirement system offers employees security and resources they cannot get if they go it alone in the individual market." (Aon Hewitt)
[Opinion] 'The Retirement Gamble' Gambit
"The framing of the retirement 'gamble' was that 'it used to be much easier,' in 1972 when, the Frontline report states, '42 percent of employees had a pension'. But one point the Frontline report ignores (as do many general media reports on this topic) is that there's a huge difference between working at an employer that offers a pension plan ... and actually collecting a pension based on that employment." (Nevin Adams via EBRI)
[Opinion] Teachers Putting Hedge Funds on Detention?
"Unions are growing increasingly frustrated by the constant attacks on defined-benefit plans and with good reason. Their members pay a lot into these plans so they can enjoy the security and peace of mind that comes with a DB plan. The last thing they want to hear is some hedge fund or private equity manager who made it stinking rich by growing assets from their members' contributions publicly slamming DB plans." (Pension Pulse)
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