24 08, 2017

New Study Finds Public Employees Overwhelmingly Choose Pensions as Retirement Plan over Individual 401(k)-Type Accounts

2017-08-24T20:28:39-07:00August 24th, 2017|Categories: Pension Funding|Tags: , |

A new study finds that public sector employees with retirement plan choice overwhelmingly choose defined benefit (DB) pension plans over 401(k)-type defined contribution (DC) individual accounts. Among the eight states studied that offer employees such a choice, the DB pension take-up rates in 2015 were 80 percent or higher in six states. Two of the plans studied had pension take-up rates higher than 95 percent, while Florida and Michigan had take-up rates of 76 percent and 75 percent, respectively. [...]

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 [...]

22 02, 2017

How We Got Out of a 401(k) and into a Real Pension

2017-02-22T23:20:56-08:00February 22nd, 2017|Categories: 401(k)|Tags: |

After being trapped in an inferior 401(k)-style retirement plan, is it possible for a union to reverse the trend and switch back to a traditional defined-benefit pension? Connecticut state employees did just that in 2012. Our little-known story, combined with similar victories in Massachusetts and West Virginia, shows it can be done. There’s a small but growing movement to follow suit in other states. […]

4 11, 2015

PBGC rate hikes moving DB plans into danger zone

2015-11-04T18:10:57-08:00November 4th, 2015|Categories: PBGC|Tags: , |

Sharply higher Pension Benefit Guaranty Corp. premiums resulting from the new federal budget deal will push more employers to shrink or terminate their defined benefit plans, moves that also will further erode the agency’s shaky finances, industry observers said. The budget deal approved by the House Oct. 28 and by the Senate Oct. 30 would raise PBGC premiums by more than 40% over the next four years, coming on top of multiyear increases already added as part of a [...]

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 [...]

8 04, 2015

Pension benefits are part of an employee’s compensation

2015-04-08T00:39:56-07:00April 8th, 2015|Categories: Retirement|Tags: , , |

By William Ghrist Robert Szypulski in his March 24 letter (“Pa. Pension Scam”) seems to have a basic misunderstanding of what a pension is. He refers to pensions for public employees as “unearned” and “public aid.” A pension is not unearned. It is part of a worker’s compensation, just the same as salary and other benefits that are paid at the time of employment. There are two types of pensions: defined benefit pensions, the more traditional type (the type [...]

31 03, 2015

How good pensions help keep your community afloat

2015-03-31T20:21:08-07:00March 31st, 2015|Categories: Retirement|Tags: , |

The pension divide in Canada is a yawning public sector-private sector gap. In the private sector, 76 per cent of employees don’t have a pension of any kind. In the public sector, 86 per cent do and they usually have the best kind. By best kind, I mean a defined benefit plan where you receive a monthly amount for life when you retire. You don’t have to worry about how to invest the money or what it’s invested in. [...]

27 03, 2015

Can I transfer my frozen final salary pension to my children?

2015-03-27T21:33:11-07:00March 27th, 2015|Categories: Retirement|Tags: , |

I am looking for advice on whether I can transfer my frozen final salary pension to my children. Is this possible?  I have a frozen company defined benefit pension with a current pension value up to April 2014 of £12,500 a year, which is subject to annual increases in line with inflation.  I also have an ongoing company defined benefit pension showing an accrued pension as of March 31 2014 of £28,785 a year.  In the future, even with [...]

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