Photo provided courtesy of Drexel University's Earle Mack School of Law
From the Pension Rights Center:
The Employee Retirement Income Security Act ("ERISA"), the law governing private retirement plans, has changed quite a bit since it was signed into law in 1974. There have been numerous amendments, court cases, regulatory actions and other developments. ERISA has had such an impact on Americans' everyday lives that it has become a field of law unto itself.
ERISA buffs frequently come together to explore the law as it is now and to discuss how it impacts current and future retirees. But an in-depth exploration of ERISA's past is a much rarer occurrence. On October 25, 2013, lawyers, actuaries, and other professionals from all corners of the pension world gathered in Philadelphia for a unique, day-long discussion of the history behind the law. The topic? ERISA at 40 - What Were They Thinking? An Oral History of the Employee Retirement Income Security Act.*
The symposium, hosted by Drexel University's Earle Mack School of Law and co-sponsored by the Pension Rights Center and the American College of Employee Benefits Counsel, was organized by Norman Stein and James Wooten. Norman Stein is a Drexel University law professor and PRC Senior Policy Advisor and James Wooten is a professor at SUNY Buffalo Law School and author of The Employee Retirement Security Act of 1974: A Political History. Participants in the symposium represented a Who's Who of ERISA, including Assistant Secretary of Labor of the Employee Benefits Security Administration, Phyllis Borzi, and J. Mark Iwry, Deputy Assistant Secretary of Treasury for Retirement and Health Policy. The symposium also featured several individuals with ties to the Pension Rights Center: PRC Board members Dan Halperin, Regina Jefferson, and Ian Lanoff; Fellows Dianne Bennett, Bill Bortz, Frank Cummings, Bob Nagle, and Henry Rose; and PRC's Director, Karen Ferguson.
Academy President-Elect Tom Terry, PBGC Director Josh Gotbaum, Academy President Cecil Bykerk
Source: American Academy of Actuaries
PBGC Director Josh Gotbaum addressed the American Academy of Actuaries board last week. He applauded the academy's discussion paper, "Risky Business: Living Longer Without Income for Life," and encouraged the group to continue its lifetime income initiative. Gotbaum also discussed PBGC's efforts promoting sound retirement systems, and provided several ideas for how Congress, the public, and employers could each do their part to make sufficient lifetime income a reality.
In August, an analysis by the academy supported the methods used by PBGC to calculate the agency's financial position. "The Pension Committee of the American Academy of Actuaries believes the methods and assumptions used by the PBGC produce a reasonable representation of the PBGC's current obligation and deficit," the group said.
Editor's note: Portions of this blog post were reprinted from This Week with permission from the American Academy of Actuaries.
Since the end of the recession more people are working for employers that offer retirement plans, and plan participation is up, according to a new report from the nonprofit Employee Benefit Research Institute — but most workers still have no retirement plan.
The data in the report is from the U.S. Census Bureau's latest Survey of Income and Program Participation (SIPP) on retirement plan participation, covering December 2011 to March 2012.
Some key takeaways are:
- 61 percent of all workers over age 16 had an employer that sponsored a pension or retirement plan for employees in 2012, up from 59 percent in 2009.
- Workers participating in a plan increased to 46 percent in 2012, up slightly from 2009 (45 percent) but below 2003 (48 percent).
- The vesting rate (the percentage of workers who say they were entitled to some pension benefit or lump-sum distribution if they left their job) stood at 43 percent in 2012, up from 24 percent in 1979.
- This change is largely due to the increased number of workers participating in defined contribution retirement plans (such as 401(k) plans), where employee contributions are immediately vested, and faster vesting requirements in private-sector pension plans.
- 401(k)-type plans were considered the primary plan by 78 percent of workers with a plan. Defined benefit (pension) plans were the primary plan for 21 percent of workers.
Take a look at notes from the Retirement Plan Participation: Survey of Income and Program Participation (SIPP) Data, 2012.
See the string of messages in the lower right-hand corner of this blog page? That's PBGC's Twitter feed. You can easily access the full feed on Twitter by clicking the famous Twitter bird under "Follow PBGC" to the right.
We use Twitter to spotlight our day-to-day efforts to protect pensions. When you follow us, you'll get quick bits of information to keep you in the know about PBGC. And each day you'll find a new fact about pensions, a link to a relevant article, or a news update about retirement security.
If you're among the more than 800,000 retirees who rely on PBGC for monthly income, you'll be first to get a link to your retiree newsletter.
If you work in the pension field, we'll tweet our monthly interest rates, premium filing updates, and news of important regulatory changes.
If you like one of our tweets and want to share it with friends, please favorite the tweet or simply retweet it, and help us spread the word as we work to save America's pensions.
Follow us at https://twitter.com/USPBGC.
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.
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.