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Policy Ideas for Boosting Defined Benefit Pensions In The Private Sector

Source: National Institute on Retirement Security In response to a request for information issued by the U.S. Senate Health, Education, Labor, and Pensions (HELP) Committee, the National Institute on Retirement Security has submitted a research issue brief with policy ideas to help expand defined benefit (DB) pension coverage for private-sector employees. The research brief, Policy Ideas for Boosting Defined Benefit Pensions In The Private Sector, details six options  for Congress to consider to help expand pension coverage in a [...]

2024-07-11T13:02:27-07:00July 11th, 2024|Categories: Defined Benefit Plans|Tags: |

The Role of Defined Benefit Pensions in Recruiting and Retaining Public Safety Professionals

Source: National Institute on Retirement Security As state and local governments across the nation continue to struggle filling public safety positions, this research explores how defined benefit pension plans are a critical workforce management tool for public safety employers. The Role of Defined Benefit Pensions in Recruiting and Retaining Public Safety Professionals examines data from a nationally representative sample of 28 police and fire pension plans, as well as national datasets. The analysis finds that a majority of these [...]

2024-07-11T09:59:49-07:00July 11th, 2024|Categories: Defined Benefit Plans|Tags: |

US Remains Biggest Force in Pension Realm, per Study

By Larry Light Source: Chief Investment Officer The U.S. continues to dominate the world’s pension system, according to a study by the Thinking Ahead Institute, a research organization sponsored by financial services giant WTW. As of year-end 2023, U.S. pension assets (both defined benefit and defined contribution) made up 63.9% of the globe’s 22 highest-value pension-providing nations, up from 56.5% 10 years before, the study indicated. That may have something to do with the large amount U.S. pension providers [...]

2024-07-10T12:50:46-07:00July 9th, 2024|Categories: Pension Funding|Tags: |

The Inequity Trap: How 401(k)s Drive Earning Gaps Between Workers

By Andrew Clark Source: NPPC A new study from Vanguard outlines a predictable yet troubling reality: The vast majority of employer contributions to 401(k) plans benefit higher-income employees rather than their working-class counterparts. The study, conducted by economists from MIT, Yale, and the U.S. Census Bureau, found significant disparities in employer matches to 401(k) contributions among different demographics. Black and Hispanic workers, who typically earn lower wages compared to white workers, tend to contribute less to their 401(k) plans. [...]

2024-07-11T10:01:21-07:00June 28th, 2024|Categories: 401(k)|Tags: , |

Policy Ideas for Boosting Defined Benefit Pensions In The Private Sector

By Dan Doonan, John Lowell, Jonathan Price, Michael Kreps, Tyler Bond and Zorast Wadia Source: National Institute on Retirement Security In response to a request for information issued by the U.S. Senate Health, Education, Labor, and Pensions (HELP) Committee, the National Institute on Retirement Security has submitted a research issue brief with policy ideas to help expand defined benefit (DB) pension coverage for private-sector employees. The research brief, Policy Ideas for Boosting Defined Benefit Pensions In The Private Sector, [...]

2024-06-06T11:41:54-07:00June 6th, 2024|Categories: Defined Benefit Plans|Tags: , |

Manager concentration dominates corporate retirement plans. How can smaller managers compete?

By Rob Kozlowski Source: Pensions & Investments U.S. corporate retirement plans are allocating more money to the very largest portfolio managers, and midsize and small managers face the challenge of finding opportunities in an increasingly concentrated market, consultants say. A total of 281 managers provided data on assets managed for non-government retirement plans. And as of Dec. 31, the 25 largest managers of non-government retirement plan assets — each exceeding $80 billion — accounted for $10.25 trillion, a 14.4% [...]

2024-06-06T11:43:57-07:00June 5th, 2024|Categories: Corporate Governance|Tags: , |

There’s a bold fix to America’s broken retirement system

By Theresa Ghilarducci Source: Pensions & Investments In March, Blackrock CEO Larry Fink made headlines with a shareholder letter warning about our broken retirement system, noting that "nearly half of Americans aged 55 to 65 reported not having a single dollar saved in personal retirement accounts. Nothing in a pension. Zero in an IRA or 401(k).” The American worker knows the retirement system is broken and they don’t like it. In a recent national survey, 79% of those who [...]

2024-05-22T14:27:59-07:00May 21st, 2024|Categories: Retirement|Tags: |

Cross-border pension schemes on the rise amid global instability

By Jack Gray Source: European Pensions Demand for international pension schemes and savings vehicles is continuing to rise beyond just expatriate communities, to protect local employee groups from growing political and economic instability, according to WTW. The consultancy’s International Pension Plan Survey found that the number of International Pension Plans (IPPs) and International Savings Plans (ISPs) being offered in countries in ‘challenging’ economic or political circumstances rose from 54 in 2019 to 126 in 2024. It attributed the increase [...]

The Myth That Public Workers Don’t Care About Pensions

By Hank Kim Source: Governing.com Although some may argue that pensions are no longer a relevant tool for recruiting and retaining public workers, the historical data and broader research show otherwise. However, with financial literacy being a significant challenge in the United States, it is critical that employers provide the necessary education around these benefits to maximize their potential in the battle to attract and keep talent. As pensions have become less common in the private sector, they have [...]

2024-07-11T13:01:14-07:00May 13th, 2024|Categories: Defined Benefit Plans|Tags: |

NIRS Offers Congress 6 Recommendations for Expanding Access to Private-Sector Pensions

By Paul Mulholland Source: Plan Sponsor The National Institute on Retirement Security has published a report providing recommendations to Congress about how to increase defined benefit plan creation in the private sector. The report was commissioned by the Senate Committee on Health, Education, Labor and Pensions. The report makes six core policy recommendations: reduce Pension Benefit Guaranty Corporation insurance premium rates; formally recognize risk-sharing plans; provide more flexibility for overfunded plans; allow pre-tax employee contributions; and permit transfers between [...]

2024-05-10T15:36:43-07:00May 9th, 2024|Categories: Pension Reform|Tags: , |

Was the 401(k) a Mistake?

Source: The New York Times Jen Forbus turned 50 this year. She is in good health and says her life has only gotten better as she has grown older. Forbus resides in Lorain, Ohio, not far from Cleveland; she is single and has no children, but her parents and sisters are nearby. She works, remotely, as an editorial supervisor for an educational publishing company, a job that she loves. She is on track to pay off her mortgage in [...]

2024-05-09T09:54:35-07:00May 9th, 2024|Categories: 401(k)|Tags: |

What Do Women Think About Retirement?

Source: National Institute on Retirement Security Women face an uphill climb when it comes to preparing for retirement. They earn less than men, often take time away from the workforce for caregiving, they live longer, and are less likely to have access to a retirement plan at work. In fact, U.S. Census Bureau data show that half of women ages 55 to 66 have no personal retirement savings. What Do Women Think About Retirement? is a research infographic that [...]

2024-05-08T09:45:14-07:00May 8th, 2024|Categories: Retirement|Tags: , |

Women Express Concern about Retirement Crisis, Long-Term Care Costs

By Remy Samuels Source: Plan Sponsor When asked if the U.S. faces a retirement crisis, 80% of women agreed that it is indeed a disaster in the making, and even more women agreed that employers should be contributing more money to workers’ retirement plans, according to data from Greenwald Research and the National Institute on Retirement Security.  As women still, on average, earn less than men, often take time away from the workforce for caregiving and tend to live [...]

2024-05-01T14:16:46-07:00May 1st, 2024|Categories: Retirement|Tags: |

Americans leave billions in workplace 401(k) plans. DOL wants to help find their lost money.

By Courtney Degen Source: Pensions & Investments Congress has tasked the Labor Department with building a lost-and-found database to help Americans find their lost retirement savings. It's off to a rocky start. The database — mandated by the retirement package SECURE 2.0 passed in late 2022 — will allow savers who lost track of their retirement money to locate their plan administrators, which experts agree is a complex problem in need of a solution. However, the DOL’s recent proposal [...]

2024-04-26T15:10:54-07:00April 26th, 2024|Categories: 401(k)|Tags: , , |

White House convenes nation’s largest pension funds to promote robust labor policies in private equity

By Courtney Degen Source: Pensions & Investments Biden administration officials met with leaders of five pension funds, representing more than $1 trillion in assets, that are requiring strong labor standards from their private equity investments, suggesting other pension funds should do the same. Such labor standards include “guaranteeing the free and fair choice to join a union, freedom of association and the recognition of the rights to collectively bargain, equal opportunity, a safe and healthy workplace, and the elimination [...]

2024-04-24T15:39:20-07:00April 24th, 2024|Categories: Pension Funding|Tags: , , |

Chicago Teachers’ Pension Fund Adds $2.1 Billion to Illinois Economy in 2023

By Michael Katz Source: Chief Investment Officer The Chicago Teachers’ Pension Fund’s $1.5 billion in payments to participants living in Illinois in 2023 had a $2.1 billion impact on the state’s economy and supported more than 11,500 jobs, according to its 2024 Economic Impact Statement. The report found that each dollar it paid out in pension benefits generated $1.40 in economic activity for the state. “We are proud to serve as an economic engine for the growth of our [...]

2024-04-25T11:33:12-07:00April 24th, 2024|Categories: Pension Funding|Tags: , |

Baby boomers are hitting “peak 65.” Two-thirds don’t have nearly enough saved for retirement.

By Aimee Picchi Source: CBS News The nation is rapidly approaching "peak 65" as younger baby boomers turn 65 this year, initiating the biggest wave of retirements in U.S. history. Yet most of those Americans are financially unprepared to stop working, and many risk living in poverty, according to a new analysis. The retirements of the youngest boomers — those born between 1959 and 1965 — are likely to reshape the U.S. economy, and not in entirely positive ways, [...]

2024-04-19T11:29:11-07:00April 18th, 2024|Categories: Retirement|Tags: , |

Chicago’s pension funding crisis is a century in the making. 5 grad students could change that.

By Rob Kozlowski Source: Pensions & Investments A team of five University of Chicago graduate students won a Harris School of Public Policy competition with a proposal of nine initiatives designed to save the city of Chicago between $200 million and $400 million a year to shore up its woefully underfunded pension funds. The team of graduate students — Syed Ahmad, Anthony Beaupre, Liam Gluck, James Karsten and Greg Rudd — was awarded the $10,000 first prize in the [...]

2024-04-11T08:56:15-07:00April 4th, 2024|Categories: Pension Funding|Tags: |

Retirement crisis looms as Americans struggle to save

By Nicole Goodkind Source: CNN Eric Payne, a 37-year-old single father to two boys, works hard to stretch his paycheck each week. It’s a task he refers to as “clicking.” He makes a good salary – in the $80,000 range – but by the time all of the essential expenses have clicked into place, there’s not much left to spare. “The clicking is for day-to-day operations,” explained Payne, who works as the director of quality assurance for a seafood [...]

2024-04-03T16:30:17-07:00April 2nd, 2024|Categories: Retirement|Tags: |

Here’s how much Americans say they need to retire — and it’s 53% higher than four years ago

By Aimee Picchi Source:CBS News Americans have lofty goals for their retirement, with the typical worker believing they need $1.46 million to retire comfortably — a jump of 53% from their savings target in 2020, according to a new survey from Northwestern Mutual. But most people are far from reaching that objective, with the study finding that the average amount held in a retirement account today is just $88,400. That means that the typical worker has a $1.37 million gap [...]

2024-04-11T08:54:30-07:00April 2nd, 2024|Categories: Retirement|Tags: |

How a New Rule Could Change the Way Advisers Handle Your Retirement Money

Source: The New York Times It seems like an issue everyone can agree on: Financial professionals should be required to handle our retirement money with the utmost care, putting investors’ interests first. But that type of care comes in degrees, and deciding exactly how far advisers should go has been the center of heated debate for nearly 15 years, pitting financial industry stakeholders, who argue their existing regulatory framework is enough, against the U.S. Labor Department, the retirement plan [...]

2024-03-28T14:34:37-07:00March 28th, 2024|Categories: Retirement|Tags: |

Working in Old Age Can’t Be the Only Answer to the Retirement Crisis

By Peter Coy Source: The New York Times Teresa Ghilarducci, a labor economist, begins her new book with a story about an 82-year-old cashier at Walmart who was able to retire — finally — after a customer started a GoFundMe campaign for him that blew up on social media. “Is this what America’s retirement system has come to?” she asks. “Are we heading for a TikTok pension system?” Ghilarducci argues that working longer is not the solution to America’s [...]

2024-03-18T11:41:54-07:00March 15th, 2024|Categories: Retirement|Tags: , |

Closing The Gender Pension Gap: Challenges And Solutions For Women In Public Service

By Maria French Source: National Public Pension Coalition Women’s History Month presents an opportunity to honor and recognize the invaluable contributions of women throughout our nation’s history. However, it also serves as a time to reflect on areas where advancements in gender equality are still needed. Today, we delve into a critical aspect of women’s financial well-being: ensuring a secure retirement through pensions. Enduring Challenges Women in the workplace face distinct challenges in securing their retirement. Research from the [...]

2024-03-12T08:42:54-07:00March 7th, 2024|Categories: Retirement|Tags: , |

Many workers believe pensions are key to achieving the American Dream. But getting those plans back isn’t easy

By Lorie Konish Source: CNBC Many Americans long for the days when companies guaranteed workers income in retirement. That includes Sara Schambers, a fourth-generation Ford auto worker and member of the United Auto Workers union, who saw her grandparents retire with financial security. But after obtaining a permanent position in 2012, the same benefits have not been available to her. “Without a pension and post-retirement health care, you have people leaving this company after 30 years’ service with nothing [...]

2024-03-12T08:45:34-07:00March 1st, 2024|Categories: Economy|Tags: |

A good time for pensions: Why the time is ripe for a secure future

Source: National Public Pension Coalition In the years following the Great Recession of 2007-2009, billionaire-backed opponents of defined-benefit pensions presented a reasonably straightforward case. The financial crisis sent equities tumbling, funding ratios of pension plans cratered, and it was easy for opponents of public employees to spread doom and gloom about pension plans. To make matters worse, pension opponents often deliberately sowed envy among non-pension recipients. At the NPPC, we believe everyone deserves a stable retirement. It’s a false [...]

2024-02-29T16:20:43-08:00February 29th, 2024|Categories: Defined Benefit Plans|Tags: , |

DB vs. DC: Wednesday Senate Hearing Dives Deep Into ‘Retirement Crisis’

By Brian Anderson Source: 401(k) Specialist That’s how Sen. Bernie Sanders (I-VT), Chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee, kicked off a hearing in Washington Wednesday titled, “Taking a Serious Look at the Retirement Crisis in America: What Can We Do to Expand Defined Benefit Pension Plans for Workers?” Most speakers during the 90-minute hearing expressed a desire for a shift back to defined benefit pension plans while other speakers, including HELP Committee ranking member [...]

Lawmakers, experts agree U.S. retirement system needs fixing, differ on how

By Courtney Degen Source: Pensions & Investments Policymakers and experts seem to agree that the U.S. retirement system needs reform, but opinions varied widely when discussing what changes are needed at a Senate hearing Feb. 28. "As a result of a relentless 40-year war on the working class waged by corporate America, traditional pension plans have become an endangered species, on their way to extinction," said Sen. Bernie Sanders, I-Vt., who chairs the Senate Committee on Health, Education, Labor [...]

2024-02-28T16:53:27-08:00February 28th, 2024|Categories: Retirement|Tags: |

Julie Su’s Nomination for Secretary of Labor Passes Senate Committee

By Paul Mulholland Source: Plan Sponsor The Senate Committee on Health, Education, Labor and Pensions advanced Julie Su’s nomination to be Secretary of Labor to the full Senate late Tuesday by an 11 to 10, party-line vote. Su has served as acting secretary since March 2023, having been confirmed as deputy secretary in July 2021. The hearing was initially scheduled as a public hearing for Wednesday. Senator Bernie Sanders, I-Vermont and the chair of the HELP Committee, did not [...]

2024-02-29T11:11:34-08:00February 28th, 2024|Categories: Economy|Tags: , , |

Americans want pension plans, worry about retirement security – NIRS

By Rob Kozlowski Source: Pensions & Investments National anxiety about retirement security continues to grow, and the vast majority of Americas believe all workers should have a pension plan, according to a new report from the National Institute for Retirement Security. According to the report, 79% of respondents to a national public opinion poll of working-age Americans believe that the nation faces a retirement crisis, up from 67% that expressed that sentiment in 2020, the last time NIRS conducted [...]

2024-02-27T15:07:05-08:00February 27th, 2024|Categories: Retirement|Tags: , |

Labor economist Teresa Ghilarducci highlights retirement system pitfalls

By Brian Kroce Source: Pensions & Investments Too many Americans are working longer — to the detriment of their health and well-being — without achieving retirement security because the retirement system in place has left them behind, according to labor economist Teresa Ghilarducci. "The system that we have experimented with for the past 40 years, which I call it a 'do-it-yourself, voluntary, individual-directed, commercially based system with top-heavy tax breaks,' has mostly failed," Ghilarducci said at the National Institute [...]

2024-02-27T12:18:53-08:00February 27th, 2024|Categories: Retirement|Tags: , |

High Retirement Anxiety Continues Among Americans: Survey

By Ted Godbout Source: National Association of Plan Advisors Just as Congress gets ready to debate whether there is a “retirement crisis,” new survey results from an organization supportive of restoring defined benefit plans finds that Americans are increasingly worried about retirement. According to the survey results from the National Institute on Retirement Security (NIRS), when asked whether the nation faces a retirement crisis, roughly 8 in 10 respondents (79%) agreed that there is a crisis, up from 67% [...]

2024-02-28T09:32:01-08:00February 27th, 2024|Categories: Retirement|Tags: , , |

UPS to drive $1.2 billion into U.S. pension plans in 2024

By Rob Koslowski Source: Pensions & Investments United Parcel Service Inc., Atlanta, plans to contribute $1.2 billion to its U.S. pension plans in 2024. The shipping company disclosed its plans in its Feb. 20 10-K filing with the SEC. UPS previously contributed $1.2 billion to the U.S. pension plans in 2023 and $2 billion to the plans in 2022. Read the full article

2024-02-21T10:10:24-08:00February 21st, 2024|Categories: Defined Benefit Plans|Tags: , , |

Faced with recruiting crisis, Alaska mulls reopening of 2 pension plans

By Rob Kozlowski Source: Pensions & Investments Nearly two decades after the Alaska Legislature closed the state's two defined benefit plans for public employees and teachers, the state is closer than ever to reopening those plans as it faces a recruitment and retention crisis for general employees, teachers and public safety officials. While the bill has passed the Alaska Senate, expectations are muted regarding its chances in the conservative-controlled House of Representatives due to concerns about costs, although an [...]

2024-02-14T10:02:21-08:00February 14th, 2024|Categories: Pension Funding|Tags: , |

Ford to drive $1 billion into pension plans in 2024

By Rob Kozlowski Source: Pensions & Investments Ford Motor Co., Dearborn, Mich., expects to contribute about $1 billion to its global pension plans in 2024. The auto company disclosed its plans in its 10-K filing with the SEC on Feb. 7. Ford contributed $756 million to its non-U.S. plans and $238 million to its U.S. plans in 2023, according to the filing. The new filing did not break down how the company plans to make contributions by region in [...]

2024-02-07T14:54:51-08:00February 7th, 2024|Categories: Pension Funding|Tags: , |

Pensions funds mull greater role in participants’ lives

By Sophie Baker Source: Pensions & Investments A handful of pension funds are thinking more carefully about the value they add for their participants and the role they play in their lives — beyond writing checks — through so-called social infrastructure. The emerging trend goes further than buying up assets that are beneficial to the pension fund's local community, such as investing in affordable housing and hospitals — a well-trodden path by many, sources said. Rather, it's about thinking [...]

2024-02-02T14:01:55-08:00February 2nd, 2024|Categories: Retirement|Tags: , |

Alaska Senate passes new pension program for state employees, but final approval is in question

By James Brooks Source: Alaska Beacon The Alaska Senate on Wednesday approved legislation to revive a pension program for state employees, an act that could bring new benefits to as many as 37,000 Alaskans and is intended to ease a chronic employee shortage at state agencies. Alaska has been without a public-employee pension program for new workers since 2006, when the Alaska Legislature abolished it in favor of a 401(k)-like program in which benefits are not guaranteed. Subsequent data [...]

2024-02-02T14:05:16-08:00January 31st, 2024|Categories: Defined Benefit Plans|Tags: , , |

401(k) experiment has failed, fueled U.S. retirement crisis, labor economist says

By Rob Kozlowski Source: Pensions & Investments The 401(k) plan experiment has failed, and the retirement crisis in the United States is only getting worse, said Teresa Ghilarducci, labor economist and author of the forthcoming book "Work, Retire, Repeat: The Uncertainty of Retirement in the New Economy." Ghilarducci, who is also professor of economics at The New School for Social Research and the director of the Schwartz Center for Economic Policy Analysis and The New School's Retirement Equity Lab, [...]

2024-01-23T13:53:46-08:00January 19th, 2024|Categories: 401(k)|Tags: , , |

Illinois’ top court upholds consolidation of police, firefighters’ pension funds

By Rob Kozlowski Source: Pensions & Investments The Illinois Supreme Court has affirmed the constitutionality of two new consolidated investment funds combining the assets of the state's municipal police and firefighters' pension funds. The court released its opinion on Jan. 19, and the decision appears likely to end a multiyear battle that followed Illinois Gov. J.B. Pritzker's signing of legislation in 2019 that consolidated the state's municipal police and fire pension plans based outside the city of Chicago into [...]

2024-01-23T13:51:53-08:00January 19th, 2024|Categories: Pension Reform|Tags: , , |

CalPERS CEO Marcie Frost hopeful CIO will be chosen in first quarter

By Arleen Jacobius Source: Pensions & Investments CalPERS CEO Marcie Frost said she is optimistic that the $483.3 billion pension fund will select a new chief investment officer in the first quarter. The Chief Investment Officer Selection Subcommittee's first round of interviews with potential candidates were scheduled to begin Jan. 17. Frost made the comment at the California Public Employees' Retirement System's Jan. 17 stakeholders meeting. “I know I indicated that the first quarter is the best outcome (to [...]

2024-01-17T15:01:17-08:00January 17th, 2024|Categories: Corporate Governance|Tags: , , |

ILPA, CalSTRS among those backing SEC’s private funds rule

By Brian Croce Source: Pensions & Investments The Institutional Limited Partners Association, Council of Institutional Investors and 11 public pension funds, including CalSTRS, have filed an amicus brief in federal court supporting the SEC in a lawsuit brought by industry groups seeking to overturn a new SEC rule requiring increased disclosure from private fund advisers and prohibiting certain fee arrangements. "The private fund adviser rules, at their core, are about protecting those benefiting by institutions' investments in private funds [...]

2024-01-05T15:14:54-08:00January 4th, 2024|Categories: SEC|Tags: , , , |

Generation X Expresses Doubt In a Dream Retirement

By Amanda Umpierrez Source: 401(k) Specialist Generation X workers are increasingly doubting their ability to achieve a dream retirement in the future. Latest findings from Schroders’ 2023 U.S. Retirement Survey found that non-retired Americans between the ages of 43 and 58 face shortcomings with their future retirement income. On average, respondents said they would be comfortable with $1,112,183 in retirement savings, yet they expect to have just $661,013 saved—the largest gap of the three age groups surveyed. Millennials (ages [...]

2023-12-15T10:54:45-08:00December 15th, 2023|Categories: Retirement|Tags: , , |

53% of world’s largest pension funds say recession is top concern

Source: Benefits Canada More than half (53 per cent) of the world’s largest pension funds say the prospect of a global recession is their No. 1 short-term concern and the same percentage expect a recession to take place in the next 12 months, according to a new survey by the Official Monetary and Financial Institutions Forum. The survey, which polled 22 global public pension funds with combined assets under management of US$4.3 trillion, found the top factors impacting investment approaches over [...]

2023-12-15T10:52:27-08:00December 4th, 2023|Categories: Uncategorized|

Most nearing retirement will need to make ‘significant’ lifestyle cuts

By Craig Lord Source: Global News Canada A wave of Canadians gearing up for retirement will be forced to make “significant” cuts to live comfortably for the rest of their lives, an analysis from Deloitte Canada shows. The report released Wednesday looked at the finances of 4,000 Canadians between 55 and 64 years old to gauge their “retirement readiness.” Hwan Kim, a partner at Deloitte Canada, notes this group is particularly large right now with three million Canadians in [...]

2023-11-30T16:50:25-08:00November 29th, 2023|Categories: Retirement|Tags: , |

IBM unveils details of retirement benefit account

By Robert Steyer Source: Pensions & Investments International Business Machines has provided details to employees of the company's scrapping its 401(k) corporate match and replacing it with a cash balance component called a retirement benefit account, which is part of the IBM Personal Pension Plan, a defined benefit plan. The RBA information is contained in the 2024 IBM U.S. Benefits Guide. The company confirmed earlier this month that the RBA would replace the 5% match for the 401(k) plan [...]

2023-11-28T08:38:48-08:00November 27th, 2023|Categories: Retirement|Tags: , , |

The Pension: That Rare Retirement Benefit Gets a Fresh Look

By Martha C. White Source: The New York Times In an economy characterized by a volatile stock market and elevated inflation, a sure thing looks better than ever. For some Americans in the labor force right now, that looks like a pension. Striking members of the United Automobile Workers union made waves this year when the union’s leaders demanded the reopening of defined-benefit pension plans for workers hired after late 2007. Although U.A.W. leadership failed to persuade automakers to [...]

2023-11-27T09:04:35-08:00November 24th, 2023|Categories: Retirement|Tags: |

IBM to end 401(k) match, offer a ‘hybrid pension’: Will other employers follow suit?

By Kristen Beckman Source: Benefits Pro IBM, once a leader in the shift away from defined benefit plans to defined contribution plans in the United States beginning in 1984, is now heading in a new direction with its retirement savings benefit for employees. Many industry observers wonder if other employers will follow IBM’s lead again. IBM notified employees earlier this month that it will suspend its 401(k) match and 1% automatic contribution as of Jan. 1 and will instead [...]

2023-12-15T10:56:33-08:00November 21st, 2023|Categories: Pension Funding|Tags: , , , |

Is renewed interest in DB plans real, or just a pipe dream?

By Brian Croce Source: Pensions & Investments The news around corporate defined benefit plans over the past couple decades has been bleak, with companies expeditiously freezing or terminating plans. But with some help out of Washington, experts say there's an opportunity for employers to reopen plans still on their books or provide their workers with guaranteed income in retirement. "For a sponsor that has a frozen plan that has participants concerned about guaranteed income, you don't necessarily need some [...]

2023-11-30T16:52:28-08:00November 20th, 2023|Categories: Defined Benefit Plans|Tags: |

Millennials Surpass Older Workers with Retirement Savings

By Amanda Umpierrez Source: 401K Specialist Despite facing financial retirement planning hurdles, Millennials are coming out on top with their retirement savings. That’s the latest finding from Vanguard’s newest Retirement Readiness report, released today, which finds Millennials workers are set to replace 58% of their prior earnings during retirement, and eight percentage points over what was estimated for Baby Boomers. Using its new forecasting tool, the Vanguard Retirement Readiness Model (VRMM), Vanguard divides its cohorts into three generations: early [...]

2023-10-06T15:46:57-07:00October 3rd, 2023|Categories: Retirement|Tags: , |

Traditional pension plans are pretty rare. But here’s who still has them and how they work

By Jeanne Sahadi Source: CNN The phrase “pension benefits” may come up a lot in the next several days as negotiations between the United Auto Workers union and the Big Three automakers go down to the wire to avert a strike. But for most private-sector US workers, pensions disappeared long ago. In a traditional pension, employers contribute, invest and manage retirement funds for their workers, who then receive guaranteed monthly checks for life after they retire. But over the [...]

2023-09-27T11:03:51-07:00September 27th, 2023|Categories: 401(k)|Tags: , |

Corporate pensions are at their healthiest in more than a decade

By Greg Iacurci Source: CNBC Pension plans for the largest U.S. companies are at their healthiest in more than a decade — and that’s largely good news for the workers who participate in such plans, said retirement experts. Public companies in the S&P 500 stock index had an average pension “funded ratio” of 102% as of Sept. 21, according to data tracked by financial services firm Aon. That’s the highest level since at least the end of 2011, when [...]

2023-09-26T10:23:25-07:00September 25th, 2023|Categories: Pension Funding|Tags: , |
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