The proposed Secure, Accessible, Flexible and Efficient (SAFE) Retirement Plan is outlined in the Center for American Progress's (CAP) report "American Retirement Savings Could Be Much Better." The SAFE Plan would combine elements of a traditional defined benefit pension — including regular lifetime payments in retirement, professional management, and pooled investing — with elements of a defined contribution plan, such as predictable costs for employers and portability for workers.
Things looked bleak last year for plan funding when a U.S. District Court in Massachusetts said private equity firms didn't operate as trades or businesses, but passive investors in the companies they own. If the ruling was left intact, it would have created a major loophole in this kind of liability for private equity funds connected to pension plans.
At the time, the court considered whether two funds managed by private equity firm Sun Capital were responsible for $4.5 million in withdrawal liability after their company, Scott Brass, a Rhode Island-based metal fabricator, left the New England Teamsters multiemployer plan.
Such distinctions are important because entities engaged in a trade or businesses may be responsible for pension shortfalls in single employer plans and for withdrawal liability in multiemployer plans.
Earlier this year, the Teamsters asked the First Circuit Court of Appeals to revisit the issue and PBGC filed a friend of the court brief supporting their cause.
In the article, "10 Ways to Pay for Retirement," U.S. News & World Report lists the most common ways to pay for retirement.
- Social Security.
- A pension.
- Retirement accounts.
- Home equity.
- Stock market investments.
- Savings accounts.
- Annuities or insurance plans.
- Part-time work.
- An inheritance.
- Rent and royalties.
Pensions are a big part of how people prepare for retirement, along with working longer, saving more, and — as a last resort — tapping home equity. Read the full article.
Did you catch Director Josh Gotbaum's interview on C-SPAN? In case you missed it, we've got the details.
Josh spoke with Bob Litan, director of research at Bloomberg Government, about PBGC's efforts to safeguard the pensions of millions of Americans. Another trending topic Director Gotbaum spoke about: multiemployer pension plans and PBGC's multiemployer program.
Then, the conversation gained added insights from panelists Earl Pomeroy, Cary Franklin, Norman Stein, and Randy DeFrehn.
Together, the panelists and Director Gotbaum talked about the need for pension reform.
Check out Director Gotbaum's remarks on C-SPAN.