PBGC will pay retirement benefits for more than 1,400 current and future retirees of Interfaith Medical Center, which operates a 287-bed hospital in Brooklyn, N.Y.
The agency stepped in because Interfaith Medical is unable to meet the minimum funding requirements for the two pension plans it sponsors.
PBGC will pay all pension benefits earned by Interfaith Medical's retirees up to the legal limit of about $55,840 for a 65-year-old.
Retirees will continue to get benefits without interruption, and future retirees can apply for benefits as soon as they are eligible.
In part one of a two-part series, "Insuring Private Pensions," Fox Business reporter Adam Shapiro and Pension Benefit Guaranty Corporation Director Josh Gotbaum, discuss the need for Congress to raise premiums to ensure 42 million Americans receive the pensions they were promised.
By now, you may have read news headlines addressing a study on PBGC premium increases released by the Pension Coalition. In an official PBGC statement, Gotbaum responded saying, "Unlike the FDIC and other Federal insurance programs, Congress has continued to set PBGC premiums and has done so in ways that both underfunds PBGC and is convincing some companies they shouldn't offer pensions at all."
In his interview, Gotbaum explains the specific PBGC-related issues that affect the retirement crisis.
Watch the complete video interview on the Fox Business website.
From the Pension Rights Center:
May is Older Americans Month, a time to celebrate the contributions older Americans have made to society — and to focus attention on the many services available to older Americans as part of the Older Americans Act.
The services that the Pension Rights Center is most proud of are those provided by the U.S. Administration on Aging's Pension Counseling and Information Program. The agency offers free legal assistance to people who need help in obtaining the retirement benefits they have earned. The Pension Rights Center provides training and technical assistance to the program's regional pension counseling projects. Since it was launched in 1993, the program has helped retirees and their families obtain more than $190 million in retirement benefits.
Throughout the month, the Pension Rights Center will highlight successful cases handled by the counseling projects.
- You will read about Vicki, who was shocked when she was told that she wasn't eligible for the pension her husband had told her would be there for her after his death.
- You'll also read about Bill, who was told that his 15 years of work had earned him only a one-time $500 lump sum, despite the fact that he knew he was entitled to a pension.
- You'll also read stories about many others who will now receive their pensions as a result of the work of the counseling projects.
- Finally, you can watch a video about the pension counseling projects that feature just a few of the real people whose lives were forever changed by the Pension Counseling and Information Program.
The Pension Counseling and Information Program provides free legal assistance to individuals in 30 states. To find out if you can be helped by a counseling project, visit http://www.pensionrights.org/find-help.
The best time to start thinking about and saving for retirement is always right now.
While that's true for everyone, recently there's been a steady flow of stories about twenty and thirty-somethings to get them ready for life after work.
That's because the estimates for how much a 20-year-old needs to save go as high as $7 million.
For some, the enormity of the task has paralyzed them into inaction, while others view themselves as highly disciplined money managers - a trait discussed in a recent report by Time.
There are many in the financial planning community who advise starting a savings plan with at least 10 percent of your yearly income. But for a generation with competing financial concerns like rent, car payments, and student loans, it's too easy not to save now for a need that's decades away.
In the recently published article "Thought Secure, Pooled Pensions Teeter and Fall," New York Times reporter Mary Williams Walsh gets candid commentary from PBGC Director Josh Gotbaum on the crisis facing the multiemployer pension system.
Gotbaum was quoted saying, "If Congress allows the PBGC to get the money and the authority it needs to do its job, then these plans can be preserved," he added. "If not, the PBGC will run out of money, too, and multiemployer pensioners will get virtually nothing. This is not something that can wait a few years. If people kick the can down the road, they'll find it went off a cliff."
Read the full article and find out more about multiemployer pension plans.
While we'd hope that you're using every day of every week to plan for your retirement, this week, April 7–11, 2014, has been designated as National Retirement Planning Week.
Organized by the National Retirement Planning Coalition — a group of prominent consumer advocacy and financial services organizations that are leading the charge to help Americans plan for retirement — this week represents a national effort to help consumers focus on their financial needs in retirement.
PBGC plays a role in this effort by protecting the retirement incomes of more than 40 million American workers in more than 26,000 private-sector defined benefit pension plans.
For informational resources, visit the National Retirement Planning Coalition's "Retire on Your Terms" webpage.