Retirement Income

Vermont is now among the states providing a state-run plan for private-sector employees whose employers are not. Gov. Phil Scott (R) has signed into law the measure that called for the creation of their iteration.  On June 1, Scott signed S. 135, the bill that creates VTSaves.  Action on the... READ MORE

The shift from defined benefit plans to defined contribution plans is not new. It may be less common in the public sector, but it is not unknown among public employers. A recent study looks at what that has meant for the Alaska education sector.  The National Institute on Retirement Security (NIRS... READ MORE

Acting with a sense of urgency to avoid a first-ever federal debt default, the U.S. Senate late June 1 approved legislation to suspend the federal debt limit until 2025, clearing the measure for presidential signature, expected today. The Senate vote on the Fiscal Responsibility Act of 2023 (H.R.... READ MORE

Amid threats of the economy crashing and 401(k)s plummeting, the House of Representatives late May 31 approved legislation to suspend the federal debt limit until 2025. Facing a June 5 deadline to avoid a first-ever federal default if Congress does not act, the House approved the Fiscal... READ MORE

With U.S. employers adding one million jobs to the economy in the first quarter of 2023, Americans appear to be refocusing on investing in their future, according to Fidelity’s latest retirement trends analysis.  Among other things, the firm reports in its Q1 2023 Retirement Analysis that 401(k)... READ MORE

There is pressure from state legislatures for action concerning the windfall elimination provision (WEP) and the government pension offset (GPO). Both are benefit formulas that reduce Social Security benefits for workers and their eligible family members if the worker receives (or is entitled to) a... READ MORE

While there’s much debate over the pros and cons of auto-features and whether participants need a nudge, the results of a new study suggest that plan sponsors can, in fact, boost “default escalators” in 401(k) plans without decreasing participation.  The results arise from a new field study... READ MORE

The Pennsylvania House of Representatives on May 24 passed HB 577, a bill that would create the Keystone Saves Program, which would be an automatic enrollment payroll deduction IRA retirement savings program. The measure passed in a 106-95 vote. All 101 Democrats in the state House voted for it,... READ MORE

A title like this one was bound to happen; and I was tempted to publish it on April Fool’s Day—except that it’s really not a joke. Where it comes from is the simple fact that any DC lifetime income program (ok, why not, let’s use the acronym DCLIP while we’re at it) that guarantees lifetime income... READ MORE