19 01, 2024

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

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

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, [...]

27 09, 2023

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

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

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 [...]

13 06, 2023

How different types of pension plans impact employee recruitment, retention

2023-06-16T10:36:03-07:00June 13th, 2023|Categories: 401(k)|Tags: , |

Source: Benefits Canada When Alaska switched its public education employees from two defined benefit pension plans to a 401(k)-style defined contribution plan, more staff left their positions, according to a new report by the National Institute on Retirement Security. The report benchmarks retirement benefit offerings among state-level plans in Alaska and nationwide, analyzing the evolution of public pension plans since the 2008/09 financial crisis. In 2005, the Alaska legislature voted to close its two statewide DB plans for teachers and [...]

24 05, 2023

DC Plan Sponsors Should Pay Attention to Increased Litigation, Low Retirement Confidence

2023-05-24T15:21:15-07:00May 24th, 2023|Categories: 401(k)|Tags: , |

By Remy Samuels Source: Plan Sponsor Increased litigation; regulatory and legislative changes; and a lack of retirement confidence among participants were common themes observed by defined contribution plan sponsor panelists on a recent Mercer webinar reflecting on key trends in the first quarter of 2023. Roughly 43 lawsuits, noted with activity, have been filed this quarter against retirement plans, including 14 settlements that totaled about $55.3 million, said Rhonda Berg, a senior principal and defined contribution consultant at Mercer [...]

30 11, 2022

Trump Loses His Clutch on Your 401(k) in Department of Labor Ruling

2022-11-30T16:24:08-08:00November 30th, 2022|Categories: 401(k), ESG|Tags: , |

By Eric Reed Source: Yahoo! Finance The new rule is written broadly, which means that it may let employers explore several different categories of investing. But it specifically aims to create more opportunities for ESG, or "Environmental, Social and Governance," investing. Otherwise known as impact investing, these are portfolios that invest around specific social and political goals. For example, a portfolio may explicitly choose not to invest in fossil fuels and dirty industries, or it may proactively invest in [...]

25 01, 2022

DC Plans: Cost Savings After All?

2022-01-25T10:59:49-08:00January 25th, 2022|Categories: 401(k)|Tags: |

By John Iekel Source: American Society of Pension Professionals & Actuaries Defined contribution plans have outstripped defined benefit plans in number of accounts, assets, employers offering them and participants. But a recent study that examines the cost of both kinds of plans challenges the notion that bigger is synonymous with better. In “A Better Bang for the Buck 3.0: Post-Retirement Experience Drives Pension Cost Advantage,” National Institute for Retirement Security (NIRS) Executive Director Dan Doonan and Pension Trustee Advisors [...]

20 01, 2022

Pension plans cheaper overall than 401(k)s, researchers find

2022-01-20T10:47:21-08:00January 20th, 2022|Categories: 401(k), Defined Benefit Plans|Tags: , |

By Emile Hallez Source: Investment News A pension research group has a message for employers: The switch from defined-benefit plans to 401(k)s has made retirement saving more expensive. That conclusion takes into account the costs borne by both employers and employees. Switching to a defined-contribution plan can of course save companies money, but the overall cost of the benefit increases, according to the National Institute on Retirement Security. The nonprofit this month published its third iteration of a paper [...]

5 11, 2021

Workers will soon find out how much guaranteed income their 401(k) could deliver in retirement

2021-11-05T16:48:56-07:00November 5th, 2021|Categories: 401(k)|Tags: , |

By Sarah O'Brien Source: CNBC It can be tricky figuring out how much income your retirement savings actually could deliver in your golden years. That may now become easier. As mandated in the 2019 Secure Act, 401(k) plan administrators will start providing illustrations on quarterly or annual statements showing an estimate of how much guaranteed lifetime income you could potentially get if the balance were annuitized. “The general intent here is to educate plan participants about how much their [...]

13 10, 2021

Plan Sponsors Want Guaranteed Lifetime Income Options

2021-10-13T10:09:30-07:00October 13th, 2021|Categories: 401(k)|Tags: , |

By Brian Anderson Source: 401K Specialist According to new research released today by Allianz Life, retirement plan sponsors “overwhelmingly” see the value of guaranteed lifetime income options—and are now ready to begin offering these new choices in their plans almost two years post-SECURE Act. According to the new data, plan sponsors indicated that they believe offering a guaranteed lifetime income option is a wise move that will go over well with plan participants. Of those surveyed, 87% of plan sponsors believe [...]

30 08, 2021

Why the 401k Fails and What A ‘Better’ System Looks Like, According to Teresa Ghilarduci

2021-08-30T08:31:42-07:00August 30th, 2021|Categories: 401(k)|

By John Sullivan Source: 401K Specialist  Teresa Ghilarducci once called the 401k an immature, underdeveloped child that needs help over a mudpuddle to the curb when crossing a street. While we disagree, we love the imagery. A labor economist and nationally recognized expert in retirement security with The New School for Social Research, Ghilarducci is a consistent and prolific advocate for a better system, however defined. Read the full article

30 08, 2021

40% of 401(k) participants say fees a mystery, GAO reports

2021-08-30T08:29:09-07:00August 30th, 2021|Categories: 401(k)|Tags: , |

By Brian Croce Source: Pensions & Investments Almost 40% of 401(k) plan participants do not fully understand the fees they are paying, a Government Accountability Office report released Thursday found. Moreover, 41% of participants incorrectly believe that they do not pay any 401(k) plan fees, according to the report. The Department of Labor requires plans to provide participants with fee disclosures, but GAO found that 45% of participants are not able to use the information in disclosures to determine [...]

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