18 11, 2019

Two rival experts agree — 401(k) plans haven’t helped you save enough for retirement

2019-11-18T11:28:35-08:00November 18th, 2019|Categories: 401(k)|Tags: , |

Retirement experts have debated for years over the consequences of America’s shift from traditional pensions to 401(k)s and other so-called defined contribution plans. Among the issues at hand: Do the new-style plans leave too many workers behind? Do they saddle employees with too much risk? Do they increase economic inequality? It’s fascinating, then, to see that two experts who commonly come at these questions from opposite sides of the political divide have collaborated on an important new analysis of [...]

17 07, 2017

The “Pension Crisis” is a Myth, Part One

2017-07-17T15:38:37-07:00July 17th, 2017|Categories: Pension Reform|Tags: , , |

Since the Great Recession in 2008, warnings of an impending pension crisis have been splashed across the business pages of newspapers across the country. Despite these boisterous decrees, America’s public pension funds are stable. We explore the roots behind the false pension crisis narrative and examine the facts. Public pension plans have existed for more than a hundred years. Beginning in the late 19th century, cities and states started offering defined benefit pensions to ensure their employees would be able [...]

4 01, 2016

Labor relations board rules against San Diego’s pension cutbacks

2016-01-04T18:01:37-08:00January 4th, 2016|Categories: Pension Funding|Tags: , |

A new state labor board ruling casts doubt on San Diego’s aggressive pension cutbacks and orders the city to spend millions creating retroactive pensions for roughly 2,000 employees hired since those cutbacks took effect. City Atty. Jan Goldsmith said he hopes to quickly get City Council approval to appeal Tuesday’s ruling by the Public Employment Relations Board, which he has criticized as staunchly pro-union. Goldsmith predicted that a state appellate court would nullify the ruling and vindicate the pension [...]

8 06, 2015

California pension initiative requires public vote on retirement benefits

2015-06-08T20:16:49-07:00June 8th, 2015|Categories: Pension Reform|Tags: , , , |

For the third time in four years, advocates for altering public pensions have a plan they want to put to a statewide vote. But this time the proposal by pension-change advocates Chuck Reed and Carl DeMaio has a new twist: Pensions and other retirement benefits would automatically become a matter of ballot-box politics by requiring voter approval any time government officials sought to upgrade benefits. It also would make “defined-contribution” plans the default retirement program for state and local [...]

18 05, 2015

Shift to 401(k) Plans Increasing Income Inequality

2015-05-18T17:08:15-07:00May 18th, 2015|Categories: Retirement|Tags: , , , |

More companies have shifted away from defined-benefit plans in the past few decades, as they struggle with mounting pension obligations. Now, a new report argues that the large-scale move by companies toward defined-contribution 401(k) plans is widening the gap between rich and poor in the United States. […]

16 04, 2015

Switching from pension to 401(k)-type plan would cost taxpayers billions more

2015-04-17T00:48:20-07:00April 16th, 2015|Categories: Defined Benefit Plans|Tags: , , , |

Former [Pennsylvania] state representative Steve Nickol has urged legislators to keep taxpayers in mind by not embracing proposals that would make the state’s pension problems worse, according to a news release from the Pennsylvania State Education Association. Nickol, a former member of the Public School Employees’ Retirement System Board of Trustees, testified before the Senate Finance Committee on Wednesday. He formerly served as a state representative in the Hanover area. […]

8 04, 2015

‘Modern’ DC Plans Have Pension-Like Elements

2015-04-08T00:45:43-07:00April 8th, 2015|Categories: Retirement|Tags: , , |

Most employers plan on increasing contributions to DC retirement plans over the next five years More than 70% of respondents said employers planned to increase their plan contributions. Employers are taking more of a responsibility in the defined contribution plans offered to their workers, a report issued Tuesday by Vanguard found. The survey, “Global Trends in DB and DC Plans,” found the modern DC plan is adopting some elements of defined pension plans to help participants prepare for a [...]

27 03, 2015

Retirement crisis

2015-03-27T21:30:18-07:00March 27th, 2015|Categories: Retirement|Tags: , |

Individual 401(k) accounts originally were designed to supplement pension and Social Security payments during retirement. It didn’t take long, however, for most private businesses to begin phasing out pension plans and simply encouraging employees to participate in a 401(k). Defined contribution plans were infinitely cheaper than defined benefit plans. Today, public pension plans throughout the country are being targeted for the switch from defined benefit to defined contribution. And Social Security has been eyed by Congress as a candidate [...]

27 03, 2015

How To Get More Guaranteed Retirement Income In The 401(k) Age

2015-03-27T21:27:03-07:00March 27th, 2015|Categories: Retirement|Tags: , |

In the old days, many Americans had a defined benefit (DB) pension that paid them a steady guaranteed income in retirement. But the pension landscape has shifted dramatically: now more than half of all US retirement assets are in self-directed defined contribution (DC) plans, such as 401(k)s and individual retirement accounts (IRAs) – and the figures are rising. These DC plans and IRAs do offer millions the chance to build up and control their own nest eggs, but what [...]

10 03, 2015

Ready to retire? Maybe not just yet

2015-03-10T00:03:54-07:00March 10th, 2015|Categories: Retirement|Tags: , , , |

If you have socked away money in a 401(k) and your 60th birthday is behind you, chances are you are thinking about when to retire. Chances are, too, that you are planning to retire sooner rather than later. The average retirement age seems to have stabilized at 62 for women and 64 for men, according to new research from Boston College’s Center for Retirement Research. But retiring too young can be very harmful to your financial health, the study found, and [...]

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