30 05, 2019

House Bill Makes Significant Changes to Retirement Plans

2019-05-30T14:17:23-07:00May 30th, 2019|Categories: Pension Funding|Tags: |

Last week, the House of Representatives overwhelmingly passed the “Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019” (H.R. 1994) by a vote of 417-3. The bill makes numerous changes affecting employer-provided retirement plans as well as individual retirement accounts (IRAs) and other tax-favored savings accounts. The bill contains provisions designed to expand and preserve retirement savings, simplify administrative requirements, expand the use of Section 529 plans, and enhance revenue. Some of the key provisions affecting retirement [...]

23 04, 2019

Workers Are Pushing for Their Share of U.S. Bankruptcy Payouts

2019-04-23T13:51:15-07:00April 23rd, 2019|Categories: Pension Funding|Tags: , |

Workers can lose everything when their employer files for bankruptcy. At least for now. A pro-labor movement sparked by the employees of Toys “R” Us Inc., and taken up by Sears Holdings Corp., has reached the U.S. Congress. Representative Tim Ryan, an Ohio Democrat, said he plans to reintroduce 2017 legislation that would define worker claims in bankruptcy as administrative expenses, meaning they’d be paid in full, like the investment bankers, consultants, lawyers and liquidators who earn millions of [...]

11 04, 2019

Treasury and IRS move backward by giving a green light to offering retiree pension buyouts

2019-04-11T08:57:10-07:00April 11th, 2019|Categories: Pension Funding|Tags: , , |

Recently, the IRS walked back protections that limited a company’s ability to offer a lump-sum payout for the monthly benefit provided by its defined-benefit pension plan. This strategy of offering lump sums allows companies to reduce their liabilities before purchasing a group annuity from an insurance company — a process known as “de-risking.” This de-risking strategy made the headlines in the U.S. in 2012 with an initiative by General Motors GM wanted to transfer its liability for retiree benefits to [...]

27 11, 2018

Lawmakers considering multibillion-dollar bailout for some retirees with failing pensions

2018-11-27T14:38:18-08:00November 27th, 2018|Categories: Pension Funding|Tags: |

Lawmakers on Capitol Hill are considering a multibillion-dollar bailout for retirees who are members of certain collapsing pension plans, The Washington Post reported Tuesday. The proposal, a draft of which was obtained by the Post, would require the Treasury Department to spend as much as $3 billion annually to subsidize payments for retirees enrolled in designated pensions. The bailout is one of several proposals under consideration by a special congressional committee wrestling the pension crisis. Lawmakers are also considering solutions such as new [...]

17 07, 2018

Jeremy Gold, Actuary Who Warned of Pension Crisis, Dies at 75

2018-07-17T09:21:15-07:00July 17th, 2018|Categories: Pension Funding|Tags: |

Jeremy Gold, an actuary who more than 25 years ago warned of the financial debacles now slowly playing out among the cities and states that sponsor pension plans for their teachers, police officers, bus drivers and other workers, died on July 6 in Manhattan. He was 75. The cause was myelodysplastic syndrome and leukemia, his son, Jonathan, said. In 1985, Mr. Gold became one of the first American actuaries to work on Wall Street, straying from the profession’s typical [...]

15 06, 2018

More than 150 pension plans may run out of money, businesses tell Congress

2018-07-13T15:28:26-07:00June 15th, 2018|Categories: Pension Funding|Tags: |

The pension crisis that threatens the retirement savings of 1.5 million Americans, including 60,000 Ohioans, also poses the risk of driving the U.S. economy into a tailspin, a panel of witnesses told a congressional panel. Witnesses from the U.S. Chamber of Commerce and businesses including UPS told the Joint Select Committee on the Solvency of Multiemployer Pension Plans that should the estimated 150 to 200 multiemployer pension plans that are in danger become insolvent, the companies that paid into [...]

30 04, 2018

Unions look for jobs to go with their infrastructure investments

2018-04-30T09:27:52-07:00April 30th, 2018|Categories: Pension Funding|Tags: , , |

As they push for more infrastructure spending, some unions also are flexing their financial muscle to make a direct connection between union jobs and where $500 billion in union pension assets are being invested. "We are making sure all of our resources are utilized to support our mission, not to undermine it," said Sean McGarvey, North America's Building Trades Unions president, at a Washington legislative conference in mid-April. "We are getting smarter and taking control of our own destiny. [...]

26 04, 2018

Bentley Workers Mull Strike over Pension Closure

2018-04-26T09:30:55-07:00April 26th, 2018|Categories: Pension Funding|Tags: , |

In a move toward a possible strike, workers at Bentley Motors headquarters in Crewe, UK, have voted in support of industrial action in a consultative ballot over plans to close the company’s defined benefit pension plan. Members of union Unite, including car production workers, senior staff, and managers, backed a strike action by an overwhelming 98% on a 92% turnout in the consultative ballot. The union warns that the move to close the pension plan could cost Bentley workers tens [...]

29 03, 2018

Union Says University Pension Cut Violates Pension Benefits Act

2018-03-29T09:34:09-07:00March 29th, 2018|Categories: Pension Funding|Tags: , , |

Striking workers at a Canadian university have complained to a government agency that a 15-year-old provision in their pension plan, allowing their employer to reduce their pension benefits, is invalid. Lawyers for the Canadian Union of Public Employees (CUPE) Local 2424, which represents striking workers at Carleton University, filed a complaint with the Financial Services Commission of Ontario (FSCO), saying that a 2003 pension plan amendment violated Ontario’s Pension Benefits Act. […]

27 03, 2018

Union says Tops plans to cut payments to employee pension plan

2018-03-27T09:31:38-07:00March 27th, 2018|Categories: Pension Funding|Tags: |

Tops Markets plans to ask a bankruptcy court judge to allow it to reduce its contributions by nearly two-thirds to the already underfunded pension plan that covers most of its employees, according to officials from the largest union representing workers at the supermarket chain. Tops has not yet asked the U.S. Bankruptcy Court to reduce the payments, but officials from Local One of the United Food and Commercial Workers said they have been told by attorneys representing the supermarket [...]

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