Search the News Archive

Pension Rights Center Comments to ERISA Advisory Council on QDIA and Lifetime Income (PDF)

"[PRC believes] it is premature to endorse [the incorporation of lifetime income features in a plan's QDIA] because of the many critical issues and unanswered questions concerning the efficacy of defaulting participants into a lifetime income strategy through the various proposed mechanisms. Indeed, challenges remain even for plans that wish to offer participants elective insured or partially insured lifetime income options at the end of a participant's career."

Prof. Norman Stein Calls for End to Conflicts of Interest in Investment Advice

"ERISA says unambiguously that people and firms that give investment advice to people in retirement plans are fiduciaries and that fiduciaries cannot generally have disabling conflicts of interest. This is not a new idea. It has been the law for close to half a century. But in 1975 the [DOL] adopted a regulation that artificially constricted the meaning of investment advice.... Well, the world in 1975 was a very different world than it is today. Steve Jobs was still tinkering in his dad's garage, e-mail meant mail in envelopes, Jennifer Aniston was in first grade, and more pertinent, the 401(k) plan had not yet been invented and only a few thousand individual retirement accounts had been opened."

Pension Rights Center Applauds Treasury Department/IRS for Protecting Retirees by Banning Lump-Sum Buyout Offers

" 'We are gratified that Treasury has moved to stop these lump-sum buyouts, which are truly among the most cynical and dangerous pension abuses we've seen,' said Norman Stein, senior policy advisor to the Pension Rights Center and a law professor at Drexel University.... 'The offer of a lump sum can create considerable confusion and anxiety for older Americans, who are often not in a position to appreciate the risks they face and the losses they might suffer,' says Stein. 'Retirees who choose a lump sum have to invest the money at the same time they are drawing it down, which is even harder than investing money before retirement. They will have to pay new fees, which will reduce their account balance, and fluctuations in the markets can destroy their investment portfolio with no time to make up the losses.' "

Statement on Behalf of the Conversation on Coverage on 'Securing Retirement Coverage for Future Generations' (PDF)

8 pages. Statement of Norman P. Stein on Behalf of The Conversation on Coverage on 'Securing Retirement Coverage for Future Generations' before the Health, Employment, Labor and Pensions Subcommittee of the Committee on Education and Labor, U.S. House of Representatives on November 8, 2007.