Headlines about "Ret plans - policy"
Gathered from the web by the editors at BenefitsLink.com.
Harkin Promises Approval of Sexual Orientation Discrimination Legislation in 2010
Excerpt: "A pivotal senator on employment issues predicts congressional approval next year of legislation that would ban workplace discrimination against homosexuals." (Workforce Management)
Factsheet on Current U.S. Retirement Account Balances
Excerpt: "The retirement savings of American households took a big hit when the stock market crashed in 2008. Recently, however, a good portion of these losses has been reversed. This fact sheet follows trends in retirement account balances since the beginning of 2005." (Urban Institute)
Survey Finds Widespread Deficiency in Retirement Preparation
Excerpt: "Despite the economic downturn's effect on the retirement plans of 50-something investors, only 23% of respondents to a recent survey are salting away more for retirement and 57% never changed their deferral rate." (PLANSPONSOR)
Banner Year for Federal Benefits: One Other Big Benefit May Be On the Way
Excerpt: "Despite a deficit of $12 trillion or so, a major recession and unemployment of about 10%, this has been a banner year for federal employee benefits. With the passage of the Defense authorization bill into law, federal employees found themselves with a new list of benefits (or at least changes) including: . . . [Also,] you may find that you have the ability to rollover the cash value of your unused sick leave or annual leave balances that cannot be carried into the next year into your Thrift Savings Plan account." (FedSmith)
Employment-Based Retirement Plan Participation: Geographic Differences and Trends, 2008
Excerpt: "About 56 percent of all working-age (21?64) wage and salary employees work for an employer or union that sponsors a retirement plan. Among full-time, full-year wage and salary workers ages 21?64 (those with the strongest connection to the work force), just under 63 percent worked for an employer or union that sponsors a plan." (Employee Benefit Research Institute (EBRI))
Why You Won't Be Able to Retire
Excerpt: "[T]he most recent reading shows that 51% of Americans will not be ready to retire at age 65, up from 44% in 2007. Frighteningly enough, that figure doesn't even take into account health-care or long-term care costs. When those costs are included, the percentage of Americans who aren't ready to retire jumps to 70%!" (Motley Fool)
Towers Perrin U.S. Legislative Tracking Chart: Retirement and Executive Compensation (PDF)
Excerpt: "Thousands of bills are introduced in Congress but only a select few are summarized on this chart. This selection represents our best judgment on the likelihood of enactment and the relevance of the issue for employers." (Towers Perrin)
Drastic 401(k) Reform Unlikely, Expert Says
Excerpt: "Last month, Time magazine ran a cover story titled 'Why It's Time to Retire the 401(k).' But such calls have not won over the bulk of Democratic lawmakers or President Barack Obama, [attorney James Delaplane] said at the conference. The answers on issues such as 401(k) fees are coming from regulators like the U.S. Department of Labor, not from Congress, he said." (Workforce Management)
U.S., Massachusetts Clash in Court Over Federal Benefits for Same-Sex Couples
Excerpt: "The United States government and Massachusetts are clashing over the issue of extending federal benefits to married same-sex couples, with the Obama administration arguing that the government is not obligated to provide benefits to gay couples." (Berkshire Eagle)
What the Stock Market Decline Means for the Financial Security and Retirement Choices of the Near-Retirement Population
Excerpt: "Simulations with a structural retirement model suggest the stock market decline will lead the early boomers to postpone their retirement by only 1.5 months on average." (Social Science Research Network)
IRS Requests Applications for IRS Advisory Committee on Tax Exempt and Government Entities
Excerpt: "The Secretary of the Treasury invites those individuals, organizations, and groups affiliated with employee plans and tax-exempt organizations to nominate individuals for membership on the ACT. Nominations should describe and document the proposed member's qualifications for membership on the ACT. Nominations should also specify the vacancy for which they wish to be considered.' (Editor's note: the document is silent as to which vacancies exist, however.) (Internal Revenue Service)
[Opinion] The 401(k): Don't Believe the Hype
Excerpt: "If someone made me America's personal-finance dictator, I'd scrap the 401(k). These workplace retirement plans are inequitable, as some companies offer good ones, some bad ones and others none at all. Fees are often too high. And even the better plans often don't provide enough investment options. Instead, I'd like to see the Roth IRA opened up to allow 401(k)-sized contributions - $16,500 a year instead of $5,000. (Or $22,000 and $6,000 for people 50 and over.) And I'd like to see the Roth's income limits lifted, so anyone could have one. . . . But since I'm not running things, the best I can do is suggest ways to make the traditional 401(k) work best." (Community Television Foundation of South Florida Inc.)
Pension Funding Relief, PBGC Improvements Called for in HELP Committee Hearing
Excerpt: "In testimony Thursday before the U.S. Senate Committee on Health, Education, Labor and Pensions (HELP), witnesses urged legislators to loosen up funding rules for defined benefit pension plans. Richard Jones, Chief Retirement Actuary at Hewitt Associates, said the perils that DB plans are facing today are not only due to the struggling economy, but are exacerbated by regulatory changes that limit the flexibility in how and when companies fund their plans. 'The imminent need is for temporary relief to help employers solve the funding problems exacerbated by the recession,' he said." (PLANSPONSOR.com; free registration required)
401(k) Plans: Several Factors Can Diminish Retirement Savings, but Automatic Enrollment Shows Promise for Increasing Participation and Savings
Testimony presented by Barbara D. Bovbjerg, director, education, workforce, and income security, before the Senate Special Committee on Aging, October 28, 2009. 22 pages. Excerpt: "Recently, policy makers have focused attention on the ability of 401(k) plans to provide participants with adequate retirement income and the challenges that arise as 401(k) plans become the predominant retirement savings plan for employees. As a result, GAO was asked to report on (1) challenges to building and maintaining of savings in 401(k) plans, and (2) recent measures to improve 401(k) participation and savings levels." (U.S. Government Accountability Office)
Pension Funding Relief Bill Makes Congressional Debut
Excerpt: "Rep. Earl Pomeroy, D-North Dakota, introduced a bill Tuesday, October 27, that would give businesses some breathing room from the strict funding rules imposed by a landmark pension reform bill than went into effect last year. . . . 'Without additional action, January 1, 2010, will bring to bear very significant additional funding requirements,' said Pomeroy, a member of the House Ways and Means Committee. 'This is going to put extraordinary pressure on companies to freeze their pension plans.'" (Workforce Management; free registration required)
Fact Sheet on the Preserve Benefits and Jobs Act Introduced by Congressmen Earl Pomeroy and Pat Tiberi (PDF)
1 page. Excerpt: "Congressman Pomeroy and Tiberi believe Congress should pass reasonable pension funding relief to keep employees working and give them security in knowing their pensions will be there when they need them." (American Benefits Council)
Section-by-Section Summary of the Preserve Benefits and Jobs Act As Proposed by Pomeroy-Tiberi (PDF)
3 pages. (American Benefits Council)
House Members Introduce Pension Funding Relief Measure
Excerpt: "U.S. House Representatives Earl Pomeroy (D-North Dakota) and Pat Tiberi (R-Ohio) have introduced a bill to further ease funding requirements for defined benefit plan sponsors. The Preserve Benefits and Jobs Act expands pension funding relief provided in the Worker, Retiree and Employer Recovery Act (WRERA) in 2008 and the Department of the Treasury regulatory guidance for 2009 reducing employer contributions. The Congressmen said the funding relief would continue worker and retirees' protections against pension benefit accruals being frozen in 2009 and 2010, as enacted by WRERA, and would protect future retirees by prohibiting pension plans from being drained by lump sum ad hoc benefits to certain individuals." (PLANSPONSOR.com; free registration required)
Re-Envisioning Retirement Security; A Conference
Excerpt: "On October 21, 2009, Retirement USA held a conference, Re-Envisioning Retirement Security, in Washington, D.C. Labor Secretary Hilda Solis delivered the keynote address, and other notable speakers included Richard Trumka, president of the AFL-CIO; Anna Burger, SEIU secretary-treasurer and chair of Change to Win; and Pulitzer Prize-winning journalist David Cay Johnston. Conference participants heard why a new private retirement system is needed; learned about the principles that should underlie a new system; and discussed proposals for a universal, secure, and adequate system for the future. Retirement USA is an initiative that is working to create a system that, along with Social Security, will provide universal, secure, and adequate retirement income to future retirees. [Conference materials are linked from the target page.]" (Retirement USA)
Retirement Savings: Automatic Enrollment Shows Promise for Some Workers, but Proposals to Broaden Retirement Savings for Other Workers Could Face Challenges
Excerpt: "Because of questions about the extent of retirement savings and prospects for a sound retirement for all Americans, GAO was asked to determine (1) what is known about the effect of automatic enrollment policies among the nation's 401(k) plans, and the extent of and future prospect for such policies; and (2) the potential benefits and limitations of automatic IRA proposals and state-assisted retirement savings proposals. To answer these questions, GAO reviewed available reports and data, and interviewed plan sponsors, industry groups, investment professionals, and relevant federal agencies." (U.S. Government Accountability Office)
[Opinion] Getting Real About 401(k) Dollar Caps; Australia's Limit on Contributions by Older Employees Reflects Actual Retirement Needs
Excerpt: "Not only are Australian employers required to contribute the equivalent of 9% of pay to their employees' accounts up to a salary ceiling of more than $145,000 -- compared to the equivalent of 3% here, but workers over age 50 can contribute over $100,000 per year to their accounts. This is nearly 20 times the measly $5,500 additional contribution ceiling for those over 50 in the U.S, a ceiling that also remains unchanged in 2010." (Jane White of Retirement Solutions)
New York Attorney General Unveils Plan to Overhaul State Pension System
Excerpt: "New York Attorney General Andrew Cuomo unveiled his plan to overhaul the state pension system, even as the state comptroller expressed concern that there could be constitutional problems with it. . . . The proposed legislation would impose stringent limits on political contributions, require extensive disclosures from investment fund personnel, create a code of conduct, compel any licensed professional to report conflicts of interest, and would bar investment firms from using placement agents or lobbyists to get business from the state pension fund.One of the more significant proposals is to change oversight of New York's $120-billion pension fund - the state's single largest asset, Cuomo said - from the current system of sole trustee to a 13-member, bipartisan board of trustees. Currently, only three states - New York, Connecticut and North Carolina - have pension funds with a sole trustee." (Newsday)
[Guidance Overview] Tomlinson Reversal May Suggest Fair Pay Act Is Fatal to Ripeness Arguments in ADEA Pension Cases
Excerpt: "The Fair Pay Act provides that, for purposes of Title VII, the Americans with Disabilities Act (ADA) and the Age Discrimination in Employment Act (ADEA), an unlawful act occurs with respect to discriminatory compensation: When the discriminatory compensation decision or practice is adopted. When a person becomes subject to the discriminatory compensation decision or practice. When a person is affected by application of the discriminatory compensation decision or practice, including each time wages, benefits or other compensation is paid, resulting from the decision or practice. As it relates to pension benefits, the Fair Pay Act states that 'nothing in [the] Act is intended to change current law treatment of when pension distributions are considered paid.'" (Faegre & Benson LLP)
Highest Earners Get Biggest Tax Breaks for Saving for Retirement
Excerpt: "Low wage earners face the most challenges saving for retirement, yet the tax subsidies for retirement saving are skewed overwhelmingly in favor of top earners. Since tax breaks for 401(k)s and similar retirement plans are tied to a participant's income tax rate, low-income taxpayers receive modest or no tax subsidies for each dollar put into these plans. The highest-paid workers, who have more resources to save for retirement without government assistance, receive the largest tax breaks." (Economic Policy Institute)
[Opinion] Do We Still Need ERISA? Only If We Want to Shortchange Savers
Excerpt: "With the technological advancements in money management platforms and payroll systems, one has to wonder whether the costs associated with ERISA compliance could be removed from the retirement plan system. If we could safely remove those costs, it's likely we could help employees accumulate between 20% and 30% more money for retirement. So it's worth considering. Since most employees work for small employers, and the costs of complying with the Employee Retirement Income Security Act of 1974 are high for small plans, most plans are carrying a big compliance drag. While it's difficult to estimate the exact drag on retirement assets, it's probably somewhere in the range of 0.5% to 1% of assets, depending on the size of the plan." (Investment News; free registration required)
Changes in Retirement Policies and Solutions Needed, According to Report
Excerpt: "A new report says that although the trend toward greater individual responsibility for retirement security will undoubtedly continue, there is much that employers, financial institutions, and the government can do to modernize their retirement policies and solutions in order to help Americans achieve a secure and dignified retirement. The McKinsey & Co. study debuts a 'Retirement Readiness Index' which finds that the average American family faces a 37% shortfall in the income they will need in retirement - a savings gap of $250,000 per household at the time of retirement - taking into account expected payouts of Social Security and pensions, as well as personal savings including 401(k) and other retirement plans." (PLANSPONSOR.com; free registration required)
ERISA Advisory Council to Meet November 3-4
Excerpt: "The Advisory Council on Employee Welfare and Pension Benefit Plans (the ERISA Advisory Council) has announced an open meeting on November 3?4, 2009. The purpose of the open meeting is for the Advisory Council members to finalize their recommendations to be presented by the Advisory Council to the Secretary. At the November 4 afternoon session, the Council members will receive an update from the Assistant Secretary of Labor for the Employee Benefits Security Administration (EBSA) and present their recommendations. The Council recommendations will be on the following issues: (1) Promoting Retirement Literacy and Security by Streamlining Disclosures to Participants and Beneficiaries, (2) Stable Value Funds and Retirement Security in the Current Economic Conditions, and (3) Approaches for Retirement Security in the United States. Descriptions of these topics are available on the Advisory Council page of the EBSA Web site. Organizations or members of the public wishing to submit a written statement may do so by mail or e-mail on or before October 27, 2009. Individuals or representatives of organizations wishing to address the Council may request to do so. Oral presentations will be limited to ten minutes, but an extended statement may be submitted for the record." (International Foundation of Employee Benefit Plans)
Redefining Defined Contribution Plans to Enhance Retirement Security
18 pages. Excerpt: "Legislators, plan sponsors, and plan participants are questioning the long-term viability of the DC system, and whether DC plans are equipped to serve as the primary retirement savings vehicles for most Americans. These doubts are natural in light of the losses sustained; total assets in DC plans declined by over $1 trillion during 2008. Although the market collapse has increased the urgency of efforts to reform DC plans, it is important to note that the shortcomings of these plans existed long before the current financial crisis, and will persist after an eventual market recovery. Most participants are not saving enough, retirement income is not protected from adverse marketconditions, and participants can exhaust their assets during retirement." (Prudential Retirement)
[Opinion] What Exactly Does It Mean to Finance Retirement?
Excerpt: "Let's talk really macro policy for a bit. 401(k) plans and DB plans are (private) vehicles for financing retirement income. Social Security is a public vehicle for the same purpose. So, in fact, is Medicare. As people age, medical costs make up a greater and greater share of the cost of living. For many, in the end, medical costs are all you spend money on. So, one pretty useful way to think about Medicare is as another (public) vehicle for financing retirement." (PLANSPONSOR.com; free registration required)
Group Seeks Answers for Retirement 'Crisis'
Excerpt: "America faces a retirement crisis, says an influential group of organizations that have started a new retirement initiative called Retirement USA. Wednesday, the group meets in Washington, D.C., to begin searching for solutions. Retirement USA was launched last March by the Economic Policy Institute, the National Committee to Preserve Social Security and Medicare, the Service Employees International Union and the Pension Rights Center. The coalition has grown since, adding the AFL-CIO, the National Caucus and Center on Black Aged and the National Consumers League, among others. The group's goal is to create a new retirement system that works in conjunction with Social Security and existing plans." (USA TODAY)
[Opinion] Alternative to 401(k)s Is a Tax Trap in Disguise
Excerpt: "An employee's 401(k), then, can take credit for one or more of the following: 1) the current plan, 2) previous 401(k) money left at former employers, and 3) roll-over IRAs. According to McKinsey and company, anyone in their 60s has five times more money than would have been their retirement nest-egg of the pre-401(k) era. (a McKinsey statistic.) Why? Because average job tenure has always been seven years, and retirement plans were operated with vesting schedules that denied any benefit at all to those who left before 10 years." (San Jose Mercury News)
[Guidance Overview] Governance and Compliance Advisory Update for Retirement Plans: October 2009
Excerpt: "September saw an increase in significant retirement plan regulatory activity." (Towers Perrin)
[Guidance Overview] In Pennsylvania, New Killed-in-Service Benefit Requires Immediate Action
Excerpt: "Providing what could be significant relief for many municipal police pension plans, Governor Edward G. Rendell signed Act 51 of 2009 into law on October 9, 2009. Effective immediately, Act 51 provides for a killed-in-service benefit to be funded by the Commonwealth of Pennsylvania equal to the monthly salary of the deceased officer, adjusted annually for the cost of living. The benefit is payable to the deceased's surviving spouse or, if there is no surviving spouse, to the deceased's minor children under the age of 18. If those children are attending college, they can receive the benefit up to the age of 23." (Ballard Spahr LLP)
Social Security $250 Payments' Debate Revs Up
Excerpt: "President Obama's plan to send $250 checks to more than 50 million Social Security recipients who won't get cost-of-living adjustments in January is gathering support in Congress, but outside experts and budget watchdogs say the payments are unjustified. . . . Experts on Social Security blasted the plan, both as a replacement for the COLA and as a way to stimulate the economy. Seniors don't deserve the money without inflation, they said, and don't need it as much as those laid off in the recession." (USA TODAY)
[Guidance Overview] Tips Offered on Retirement Plan Changes
Excerpt: "The Internal Revenue Service will change tax forms to allow refunds to be automatically deposited into retirement accounts. Whether the money is directed at an individual retirement account or a defined contribution plan such as a 401(k), employers and their employees need to be sure not to exceed the annual contribution limits for these plans. In 2009, the limit on contributions by individuals to 401(k) plans is $16,500, and the limit on contributions to IRAs is $5,000, with certain exceptions." (The National Underwriter Company; free registration or paid subscription required)
Most California Voters Back Proposed Public Pension Changes to Reduce Benefit Costs
Excerpt: "Californians favor changing the pension system for newly hired state and local government employees, and most back three possible scenarios that could reduce benefits, a new poll finds." (The Press-Enterprise)
[Opinion] TIME Magazine's 401(k) Plan Cover Story: Bad Facts, Bad Story
Excerpt: "[T]his article is emblematic of the uneven, at times unfair, coverage of 401(k)s during the market decline." (Vanguard Blog)
Restoring Americans' Retirement Security: A Shared Responsibility (PDF)
31 pages. Excerpt: "McKinsey's analysis indicates that a consistent focus on four policy principles could enable the average American family to reduce their retirement readiness gap by nearly half, injecting over $3.5 trillion in incremental assets into the retirement system over the nextdecade. These four principles are: (1) improving the accessibility of retirement plans, (2) increasing plan participation and savings ratesfor all Americans, especially lower- and middle-income households, (3) helping Americans to better manage their in-retirement risks in order to draw a stable 'retirement paycheck,' and (4) enabling Americans to work longer. The trend toward greater individual responsibility for retirement security will undoubtedly continue, particularly given the deteriorating state of employer and government balance sheets." (McKinsey & Company, Inc. via Retirement Made Simpler)
The Displacement Effect of Public Pensions on the Accumulation of Financial Assets
Excerpt: "The generosity of public pensions may depress private savings and provide incentives to retire early. While there is plenty of evidence supporting the latter effect, there remains considerable controversy as whether or not public pensions crowd out private savings. This paper uses international micro-datasets collected over recent years to investigate whether public pensions displace private savings." (University of Michigan Retirement Research Center)
Obama Proposes $250 for Retirees to Augment Social Security Checks
Excerpt: "President Barack Obama proposed giving payments of $250 to more than 50 million retired Americans who won't get an increase in their Social Security checks next year. The announcement on Wednesday came ahead of the Social Security Administration's expected announcement that seniors will not receive a cost-of-living adjustment in 2010 because of the poor economy." (Capitol Hill Publishing Corp.)
The Fall and Rise of Household Saving (PDF)
14 pages. Excerpt: "In the 1970s, the average personal saving rate was 9.6%. At one time, in 2005, it was less than 1%. For the 40 months between January 2005 and April 2008, the personal saving rate averaged 1.8%. That it was so low for an extended period of time would seem to be cause for worry. In the past, Congress has indicated a desire to promote household saving by, among other things, creating individual retirement accounts, and saving is an important consideration in proposals to reform Social Security. In May 2008, the personal saving rate began to rise. It is too early to tell with any certainty whether that represents the reversal of the long-term decline. What may seem unusual is that the recent rise in household saving occurred at a time of general economic weakness. While policymakers hope to stimulate aggregate demand with an expansionary fiscal policy, the increase in household saving resulted in more than $300 billion less in consumer spending than would have occurred had the saving rate not risen." (U.S. Congressional Research Service)
[Guidance Overview] Towers Perrin Monthly Retirement Regulatory Round-Up, September 2009 (PDF)
5 pages. Excerpt: "The Monthly Regulatory Round-Up is a high-level summary of legal and regulatory developments that occurred during July 2009 that may be relevant to large employers. Developments are sorted according to federal legislative developments, federal regulatory guidance, other developments (e.g., significant litigation, studies, select state law developments)." (Towers Perrin)
Rebuilding Workers' Retirement Security: A Labor Perspective on Private Pension Reform
Excerpt: "This chapter surveys the issues facing policymakers and workers' organizations thinking about rebuilding a viable retirement security system in the United States, in the context of declining defined benefit coverage and persistent serious flaws in defined contribution plans. The chapter lays out principles for a universal system of supplemental retirement income coverage based on mandatory contribution levels, mandatory portability, limitations on early withdrawals, and annuitization. The structure outlined envisions continued participant and employer choice of both investment strategy and benefit design, with incentives built in for collective asset management." (Pension Research Council; registration required to download fulltext of paper)
Compromise Defense Authorization Bill Measure Advances Retirement Reforms
Excerpt: "House-Senate negotiators included a number of pay and retirement provisions in a compromise version of the 2010 Defense authorization bill, overcoming the objections of Republican senators who blocked the language from the Senate version of the bill. The conference report, approved on Wednesday morning, includes a provision that would allow workers in the Federal Employees Retirement System to count unused sick leave toward their retirement. The provision would be phased in over a four-year period. Until Dec. 31, 2013, employees would receive 50 percent credit for unused sick time; they would receive full credit beginning on Jan. 1, 2014." (GovernmentExecutive.com)
[Opinion] Watson Wyatt Testifies in Support of Funding Relief for DB Plan Sponsors
Excerpt: "Testimony of Mark Warshawsky, Director of Retirement Research, Watson Wyatt Worldwide, presented to the House Committee on Ways and Means at the hearing 'Defined Benefit Pension Plan Funding Levels and Investment Advice Rules,' Oct. 01, 2009." (Watson Wyatt Worldwide)
Many Pension Plans Facing Sharply Higher 2010 Contributions, Mercer Tells Congress
Excerpt: "Pension funding relief already provided by Congress and the IRS has reduced what would have been dramatically higher 2009 required contributions for many sponsors, but a cash crunch looms for the 2010 plan year, Mercer told a congressional panel. 'Barring an enormous market recovery, we expect that many plans will face significantly increased required contributions,' said Mercer Principal Craig Rosenthal in testimony before the House Ways and Means Committee. Rosenthal presented findings from an extensive new Mercer study on the status of plans' funding and credit balance levels." (Mercer LLC)
House Ways and Means Committee October 1 Pension Funding Hearing
Excerpt: "The committee hearing comes on the heals of a special edition of the Employee Plans News issued by the Internal Revenue Service on Sept. 25 that included information on impending funding regulations. In addition to stating that the regulations will be issued 'in the near future,' it also provided further guidance on determining the adjusted funding target attainment percentage (AFTAP). Specifically, the IRS concluded that a plan with a Jan. 1, 2009 valuation date could use the lower monthly yield curves from any of the four months immediately proceeding January 2009 and change the valuation in 2010 and after. The guidance also said that all of this could be done without having to wait for IRS approval. This move is expected to help assist pension plans achieve a smoothed valuation rate and provide more predictability." (Financial Executives International)
CRS Report: Income and Poverty Among Older Americans in 2008 (PDF)
30 pages. Updated October 2, 2009. Excerpt: "Thirty-four percent of persons aged 65 and older received income from private-sector and public sector pensions in 2008. Among individuals aged 65 and older who reported receiving income from government pensions, the median amount received in 2008 was $18,000. Among recipients of private pensions, median pension income was $7,584. Forty-four percent of households in which either the household head or spouse was aged 65 or older received income from a private or public pension in 2008. Median household income from public-sector pensions in 2008 was $19,162. Median household income from private-sector pensions in 2008 was $8,412." (Congressional Research Service, U.S. Library of Congress)
The High Price of Being a Gay Couple
Excerpt: "We looked at benefits that routinely go to married heterosexual couples but not to gay couples, like certain Social Security payments. We plotted out the cost of health insurance for couples whose employers don't offer it to domestic partners. Even tax preparation can cost more, since gay couples have to file two sets of returns. Still, many couples may come out ahead in one area: they owe less in income taxes because they're not hit with the so-called marriage penalty." (The New York Times; free registration required)
Survey Results Have Glum View of Retirement Preparedness
Excerpt: "Thirty-eight percent of employers believe their employees have little knowledge of how much they'll need for retirement, and only 8 percent think their workers have a strong idea of how much will be needed. " (Workforce.com)
[Opinion] Defined Benefit Pensions Needed for Poverty Reduction
Excerpt: "NIRS research finds that pension income plays a critical role in reducing the risk of poverty and hardship among older Americans, while also reducing public assistance expenditures. The Pension Factor shows that rates of poverty among older households lacking pension income were about six times greater than those with such income." (National Institute on Retirement Security)
Making Your Retirement Nest Egg Last a Lifetime
Excerpt: "One straightforward solution to the drawdown challenge is an immediate annuity, which turns a lump sum of income into a lifelong payment stream. However, for various reasons, such annuities have not proven broadly popular. Therefore, this brief examines several alternatives. All such strategies involve a trade-off between maximizing consumption and minimizing the risk of running out of money. Calculating the optimal strategy is really hard ? maybe impossible. But, despite the complexity of the problem, some strategies are clearly superior to others... " (Center for Retirement Research at Boston College)
[Opinion] Joint Testimony of PSCA and Others Before the Committee on Ways and Means Hearing on Investment Advice and DB Plan Funding Levels (PDF)
12 pages; October 1, 2009. (Profit Sharing/401k Council of America)
Retirement Policy: What to Watch in Washington
Excerpt: "How could the Obama Administration and Congress change the way you save for your golden years? Here's a look." (BusinessWeek)
National Compensation Survey: Employee Benefits in the United States, March 2009
Includes updated (March 2009) tables on Retirement benefits; Health care benefits; Life, short-term, and long-term disability insurance benefits; Holiday, vacation, sick, and other leave benefits; Other benefits. (Bureau of Labor Statistics, U.S. Department of Labor)
Towers Perrin U.S. Legislative Tracking Chart -- Retirement and Executive Compensation (PDF)
11 pages; updated September 24, 2009. (Towers Perrin)
Impact of The Pension Protection Act on Financial Advice: What Works And What Remains to Be Done?
Excerpt: "In light of the challenges and complexity of managing income for retirees, and the lack of overall financial literacy of our workforce, advice and financial planning services must be effectively delivered to help more participants achieve financial security, today and in retirement. A challenge that emerged in the wake of the Pension Protection Act of 2006 is how to deliver such advice without compromising plan sponsors' fiduciary responsibilities, and without relying on participants to indirectly fund the cost of advice programs through their purchase of ancillary financial products. " (via Pension Research Council)
The Declining Role of Private Defined Benefit Pension Plans: Who Is Affected, And How
Excerpt: "Using an empirical distribution of enhanced contributions to DC plans from sponsors freezing their DB plans, we simulate the nominal annuity that could be purchased at retirement age from these enhanced contributions. We then back out the net pension loss experienced by employees in the future." (via Pension Research Council)
Strong Bipartisan Support for Automatic IRA
Excerpt: "A new Hart Research Associates and AARP survey found that 79 percent of adults are in favor of requiring employers with 10 or more workers that have been in business at least 2 years to offer a retirement plan. Employees would be automatically enrolled, but also given an opportunity to opt-out." (U.S. News & World Report)
Local Area Employee Benefits Estimates for 15 Metropolitan Areas
Excerpt: "This article introduces a set of experimental benefit incidence measures for civilian workers in several large metropolitan areas; the data have a reference period of December 2008. These estimates include worker access to three of the main types of employee benefits for which the NCS publishes estimates: retirement benefits, medical care benefits, and life insurance benefits. Because of the relatively small sample sizes for the metropolitan areas, this article reports only access statistics. Access, as defined by the NCS, is having the benefit available for use." (U.S. Bureau of Labor Statistics)
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