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Retirement Income
It’s no longer just states that are looking at the notion of expanding private sector retirement plan coverage.New York City Public Advocate Letitia James on Feb. 26 introduced legislation creating a commission of experts to study the establishment of a pension fund for private sector workers in...
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Even as the economy has bounced back from the dark days in the late 2000s, an overwhelming number of working-age Americans still have concerns about their finances.A new study conducted by Harris, on behalf of the Million Dollar Round Table reports that 84% of Millennials (ages 18-34) and 83% of...
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Proposals in New England neighbors Connecticut and Rhode Island would give their respective residents breaks from state taxes imposed on their pensions. Bills have been introduced in the legislatures of both states that would provide different degrees of relief: some would phase in a tax break;...
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Buoyed by a rising stock market, most defined contribution plan participants stayed the course, according to a new survey published by the Investment Company Institute.The trends largely reflected a continuation of patterns that have been going on since at least 2011, when the country really began...
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The world’s pension assets grew 6% last year, and now amount to around 84% of global Gross Domestic Product (GDP), substantially higher than the 54% recorded in 2008.That growth means that global institutional pension fund assets in the 16 major markets have now reached a new high of $36 trillion,...
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One of my favorite movies — and perhaps my favorite “holiday” movie — is Groundhog Day, the 1993 film starring Bill Murray as an arrogant weatherman who finds himself stuck in Punxsutawney, Penn. by a blizzard, who then discovers that he is also “stuck” reliving Feb. 2 — over and over and over. A...
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Deferral and savings rates in 401(k) plans improved at a stronger rate than expected in 2014, recent studies reveal.According to Cogent Reports found that almost one-third of participants increased their contributions in 2014. That’s almost 12 percentage points higher than the number who in 2013...
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Reports of hacks, identity theft and more highlight the importance of making sure information about plan participants and beneficiaries is secure. In fact, it’s more than a good idea — it’s part of a fiduciary’s duty.The 401(k) HelpCenter suggests questions to ask to make sure participants’ and...
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Despite media attention surrounding the Millennial Generation’s relatively poor economic outcomes during the Great Recession, a new analysis by researchers at the Federal Reserve finds that they have fared better on many measures than both current older adults and earlier young adults. According to...
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It was not a good year for pension funding.The estimated aggregate funding level of pension plans sponsored by S&P 1500 companies decreased from 88% as of Dec. 31, 2013 to 79% as of Dec. 31, 2014, according to Mercer. Towers Watson examined pension plan data for the 411 Fortune 1000 companies...
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The Pension Benefit Guaranty Corporation (PBGC) on Nov. 24 issued a final rule that makes it easier for defined contribution plan participants to move their funds into defined benefit plans. The PBGC intends the new rule to better facilitate lifetime income. This rule provides guidance on treatment...
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The Government Accountability Office (GAO) published its final report on Individual Retirement Accounts (IRAs), offering some recommendations for Congress and the IRS on so-called “mega” IRAs.As had the agency’s preliminary reports on IRAs, the new report notes that a small number of taxpayers has...
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The Pension Benefit Guaranty Corporation (PBGC) on Nov. 17 released its 2014 annual report, which had good news and bad news for the agency that protects pension benefits for millions of Americans in private-sector pension plans.The good news: the deficit of the PBGC’s single-employer program,...
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The Pension Benefit Guaranty Corporation (PBGC) on Oct. 24 announced the premium rates for 2015. Some rates increased sharply, while other increases were far more modest.Flat-rate PremiumsThe per-participant flat premium rate for plan years beginning in 2015 is $57 for single-employer plans (up...
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They say when you have your health, you have just about everything, and a new study seems to bear that out — and that includes being financially ready for retirement.Healthier employees feel more prepared when it comes to having a financial plan, saving enough for retirement to last a lifetime and...
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The Highway and Transportation Funding Act of 2014 (HATFA) had consequences for annual financial and actuarial information reporting under Section 4010 of ERISA and part 4010 of the PBGC regulations. To better clarify how it applies since HATFA's retroactive application for 2013 may cause a timing...
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The number of single-employer defined benefit plans has dropped sharply over a nearly 40-year period, while the decline multiemployer DB plans of has been far less dramatic. But in “Beyond the Numbers: An Analysis of Multiemployer Pension Plans,” William Wiatrowski, an economist in the Bureau of...
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The Joint Committee on Taxation (JCT), the congressional scorekeeper of tax legislation, on Aug. 5 issued its latest estimates of the increasing costs of the tax incentives for retirement savings. The numbers are eye-popping. JCT projects that:• the tax exclusion for saving in DC plans will cost...
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The Wells Fargo/Gallup Investor and Retirement Optimism Index slipped eight points in the second quarter driven largely by a 17-point decline in optimism among retired investors.Nearly nine out of 10 non-retired investors said they are optimistic they will achieve the American Dream versus 77% of...
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During the last week of July, the Bipartisan Policy Center hosted a panel on retirement security — and shared some interesting perspectives on the state of America’s retirement readiness. Pension professionals should understand these perspectives, as they could well find their way into future...
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