Headlines about "Ret plans - policy"

Gathered from the web by the editors at BenefitsLink.com.
Report of Council of Economic Advisers: 'Supporting Retirement for American Families' (PDF)
Feb. 2, 2012. 'While economic studies have established the benefits of annuitization for retirees -- including both immediate and longevity annuities -- many workers have only limited access to these products. The administrative guidance issued by the Treasury today, easing and simplifying certain regulatory requirements for retirement plans and IRAs, takes an important first step towards a more complete private market offering more attractive lifetime income options." (Council of Economic Advisers, Executive Office of the President)

[Opinion] ERIC to Congress: Fix Pension Funding Rules to Strengthen Pensions and Improve Economic Growth
"Gretchen R. Haggerty, Executive Vice President and Chief Financial Officer for the United States Steel Corporation testified today on behalf of The ERISA Industry Committee (ERIC) . . . called on Congress to enact permanent reforms to the pension funding rules enacted under the Pension Protection Act of 2006 (PPA), contending that the current rules are severely burdening companies, undermining the future of defined benefit plans and potentially threatening the country's larger national economic recovery." (The ERISA Industry Committee)

Annual Statistical Supplement, 2011, Published by the U.S. Social Security Administration
"The Supplement is a major resource for data on our nation's social insurance and welfare programs. The majority of the statistical tables present information about programs administered by the Social Security Administration -- the Old-Age, Survivors, and Disability Insurance program, known collectively as Social Security, and the Supplemental Security Income program. In addition, data are presented on the major health care programs -- Medicare and Medicaid -- and social insurance programs, including workers' compensation, unemployment insurance, temporary disability insurance, Black Lung benefits, and veterans' benefits. The Supplement also includes program summaries and legislative histories that help users of the data understand these programs." (U.S. Social Security Administration)

Social Security Bulletin (February 2012)
Vol. 72, No. 1. Articles include The Impact of Changes in Couples' Earnings on Married Women's Social Security Benefits, The Retirement Prospects of Divorced Women, This Is Not Your Parents' Retirement: Comparing Retirement Income Across Generations; and The Increasing Labor Force Participation of Older Workers and its Effect on the Income of the Aged. (U.S. Social Security Administration)

PBGC Director Explains Retirement Security Challenges, Pension Agency Finances Before House Panel
"Josh Gotbaum, director of the Pension Benefit Guaranty Corporation (PBGC), told a House subcommittee today that the combination of living longer, the economy, and changes in pension plans was threatening many people's retirement security. He also detailed the agency's financial challenges, and outlined an administration proposal to redress them by reforming how PBGC sets premiums." (Pension Benefit Guaranty Corporation)

Webcast and Written Testimony: Hearing Entitled 'Examining the Challenges Facing PBGC and Defined Benefit Pension Plans'
February 2, 2012. (Subcommittee on Health, Employment, Labor, and Pensions; Education and the Workforce Committee; U.S. House of Representatives)

Association of Public Pension Plans Launches Web Site Promoting Extension of Coverage to Private-Sector Employees
"Retirement security for all Americans -- whether they work in the public or private sector -- must become a national priority. The Secure Choice Pension (SCP) plan would allow private companies and individuals to participate in a state-sponsored pension plan for the private sector. . . . The SCP benefits include having more taxpaying, productive retirees rather than senior citizens becoming wards of the state who rely upon public assistance." (National Conference on Public Employee Retirement Systems (NCPERS))

Is My American Airlines Pension Guaranteed? Yes, But...
"Who gets the haircut? The PBGC has a sliding scale of maximum benefits, depending on age. The most it will pay people who retire at age 65 is $55,841. If your benefit is less than that you have only the long-term health of the PBGC to worry about." (TIME.com)

Unions Howl at Details of Jerry Brown's Pension Overhaul Proposal
"The details delivered to the Legislature on Thursday generally tracked with an outline he unveiled in October. Representatives of a union coalition hoped to negotiate what they consider a less severe package. On Thursday, they said they felt blindsided." (Sacramento Bee)

California Governor Jerry Brown Delivers Pension Reform Language to Legislators
"The governor's plan won't go forward without two-thirds of the Legislature voting to put the constitutional changes on the Nov. 6 ballot, which would then need voter approval from a majority." (Sacramento Bee)

Mayor Says Pensions and Benefits for Uniformed Workers Will Cost New York City More Than Their Actual Salaries
"Pensions and fringe benefits for uniformed workers are going to cost the city more next year than their actual salaries, Mayor Bloomberg revealed [on Thursday, Feb. 2] as he made another strong pitch for Albany to enact pension reforms." (NYPOST.com)

Some Top Military Brass Making More in Pension Than Pay
"Previously, the maximum annual pension was based on an officer's pay at 26 years of service. Now, a four-star officer retiring in 2011 with 38 years' experience would get a yearly pension of about $219,600, a jump of $84,000, or 63% beyond what was once allowed." (USATODAY.com)

[Official Guidance] Text of IRS Notice of Hearing on Discussion Draft of IRS Regs on 'Indian Tribal Government Plan' Status
Reschedules a public hearing from June 5 to be July 10, and extends the period for the submission of public comments. (U.S. Internal Revenue Service)

[Official Guidance] Text of IRS Notice of Hearing on Discussion Draft of IRS Regs on 'Governmental Plan' Status
Reschedules a public hearing from June 5 to be July 9, and extends the period for the submission of public comments. (U.S. Internal Revenue Service)

[Opinion] 401(k) Plan Leakage: Blame Hardship Distributions, Not Loans
"Based on 30-plus years of plan sponsor experience, I believe negative press about 401(k) loans are aimed at the wrong target. Rather, hardship withdrawals should be in the crosshairs, not loans." (Employee Benefit News)

IMF Analysis of Pension Reforms in Advanced Economies
"[G]radually raising retirement ages could help countries contain increases in pension spending and boost economic growth. Further cuts in pension benefits, or raising payroll contributions, are also options countries could consider, although many countries will find many advantages in raising retirement ages. The challenge is to reform pension systems without hurting their ability to provide income security for the elderly and prevent old-age poverty." (Huffington Post)

How to Calculate 401(k) 'Tax Expenditures'
"[The favorable treatment provided by the Internal Revenue Code for 401(k) plans] costs the Treasury money. The question is how much? The calculation involves comparing the present discounted value of taxes collected from saving within a 401(k) plan to how much would have been collected if the saving were done outside." (SmartMoney)

[Opinion] The Savings Crisis of Working Americans: The Retirement Industry Call to Action
"[I]f our society does not acknowledge and address the coming retirement savings shortfall, the American dream of retirement will most certainly become a nightmare. . . . Americans must save more for their retirement." (Legg Mason Retirement Advisory Council)

House Panel to Examine Financial Health of PBGC This Thursday
"The House Education and Workforce Health, Employment, Labor and Pensions subcommittee hearing comes at a time when the PBGC has a record $26 billion deficit in its insurance programs that are used to pay benefits promised by financially struggling or failed employers whose pension plans the agency has taken over." (Business Insurance)

Public-private Pay Gap Varies Greatly By Education Level
"Federal civilian workers with only a high school diploma or less fared much better than private sector employees with the same: They earned 21 percent more wages, 72 percent higher benefits and 36 percent more in total compensation. . . . In contrast, among employees with a professional degree or doctorate, federal workers earned 23 percent less in wages and 18 percent lower total compensation, while receiving about the same benefits as the private sector employees with identical degrees." (GovExec.com)

[Opinion] Setting Interest Rates Too Low: The Fed's New Tax on Retirees
"Last week, the Federal Reserve rolled out their inflation forecast and interest rate intentions through 2014 . . . . This financial repression will result in a trillion dollar transfer of real wealth from fixed income investors to the persons, businesses and governments borrowing at below free-market rates." (Forbes)

How Index Trading Increases Market Vulnerability
"The popularity of index funds and ETFs . . . comes at the cost of 'trading commonality,' or 'basket trading,' across the market. Many stocks within an index being traded are simultaneously bought and sold. As a consequence, the stocks in an index tend to move together throughout the trading day." (Morningstar Advisor)

Pushback from Disclosure of Costs to Participants: Too Much 401(k) Sunshine?
"[R]ecord keepers for some plans are already experimenting with new ways to explain fees to retirement savers. And in at least one case, those disclosures are raising more questions than employers or investment advisers want to answer." (Wall Street Journal)

Rhode Island Treasurer Says Move 36 Local Pension Plans Into State-Run System
"The 36 local plans have a combined unfunded liability of $2.1 billion, but about 40% of that shortfall is in one city: Providence, where [the mayor has clashed with the state treasurer] over whether the General Assembly should pass legislation giving communities the green light to freeze pension cost-of-living adjustments (COLAs)." (WPRI)

[Official Guidance] Second Quarter Update to the 2011? 2012 IRS Priority Guidance Plan (PDF)
"The second quarter update to the 2011-2012 plan reflects 14 additional projects that have become priorities and/or guidance we have published during the period from October 1, 2011 through December 31, 2011 of the plan year. In addition, the update reflects one project we have closed without publication because the statute was subsequently repealed." (U.S. Internal Revenue Service)

Legislative Background of Expiring Federal Tax Provisions, 2011-2022
"The legislative background provided for each expiring provision includes: A brief description of the provision, The public law in which the provision was originally enacted with the original expiration date, A brief description of substantial modifications to the provision, if any, and The public law in which the provision was most recently extended, if any, with the current expiration date." (U.S. Joint Committee on Taxation)

[Opinion] The Striking Impact of Transparency, the Prohibited Transaction Rules and the Exclusive Benefit Rule
"If we step back for a minute, we can see the extraordinary policy underlying 408(b)(2), the prohibited transaction rules and the exclusive benefit rules (which apply even to non-ERISA plans). These rules seek to set aside and protect from others the individual wealth of those who accumulate benefits under these plans." (Robert J. Toth, Jr., Business of Benefits)

[Guidance Overview] IRS Extension of Transition Relief for Puerto Rico Qualified Plans to Participate in U.S. Group Trusts and Deadline to Transfer Assets
"There are now two separate deadlines: First, in recognition of the fact that Puerto Rico adopted a new tax code in 2011 with significant changes to the requirements for qualified retirement plans, the IRS has extended the general deadline to December 31, 2012, for dual-qualified plans to make transfers to Puerto Rico-only plans, in order to give plan sponsors time to consider the effect of the changes made by the new tax code." (The Bureau of National Affairs, Inc.)

What Should You Do with 401(k) Funds at Retirement?
"Retirees who want to keep investments sheltered from paying current taxes will essentially have two options. Savings can be left in a company retirement plan, where retirees can keep their money in a lineup of funds chosen by the company. Or the assets can be rolled over into another tax-favored account, generally an individual retirement account, which provides investors with control over investment choices and makes it easier to work with a financial adviser." (The Wall Street Journal)

[Official Guidance] Bill Text for H.R. 3819: Health Freedom for Seniors Act
"To amend the Internal Revenue Code of 1986 to allow the transfer of required minimum distributions from a retirement plan to a health savings account." (The Library of Congress)

Ann Combs Previews Retirement and Investment Issues Facing Washington This Year
"From congressional initiatives such as the debt ceiling and tax reform to the 2012 regulatory agenda, Ms. Combs discusses many topics vital to retirement plan sponsors -- and how you can benefit from Vanguard's voice in Washington." (The Vanguard Group, Inc.)

How Much Do 401(k)s Cost the Treasury?
"What's a reasonable number? Our estimate . . . is between $50 and $70 billion." (Dow Jones & Company, Inc.)

Workers Fight Switch to 'Church Plan' Status of Pension Plans
"[A] growing number of plan sponsors with less-direct ties to religious organizations have been declaring themselves church plans and asking the Internal Revenue Service to issue private-letter rulings confirming the exemptions, which free the plans from federal funding requirements. They can stop paying PBGC insurance premiums and can even receive a refund of up to six years of insurance premiums . . . ." (Reuters)

Workers Fight Switch to Church Pension Plans
"[ERISA] has always exempted plans operated directly by churches for their clergy and employees to make it easier for the churches to operate their plans. A 1980 amendment to ERISA clarified that the exemption also applied to church pension boards, which administer group pension plans for church employees. But since then, a growing number of plan sponsors with less-direct ties to religious organizations have been declaring themselves church plans and asking the [IRS] to issue private-letter rulings confirming the exemptions, which free the plans from federal funding requirements." (Thomson Reuters)

Developing a Pension Funding Policy for State and Local Governments (PDF)
"These funding principles can be thought of in a risk-management framework. In an effort to keep the employer's pension contribution relatively stable from year to year, a funding policy should: (1) identify keyrisk areas that add to contribution volatility and (2) identify ways to manage each of those risks. The primary risk areas in funding retirement systems are investment risks, demographic risks within the covered population, benefit or plan design risks, and governance risks." (Gabriel Roeder Smith & Company)

[Guidance Overview] Recent Developments Affecting Puerto Rico Retirement Plans (PDF)
"First, the Governor of Puerto Rico recently signed legislation making technical amendments to the retirement plan provisions in the Puerto Ricotax code enacted in January 2011. Second, Puerto Rico issued Circular Letter 11-10 which provides guidance for amending plans and obtaining plan qualification letters. Finally, the IRS issued Notice 2012-6 which further extends the transfer deadline for U.S. qualified plans tospin off their Puerto Rico participants into a second plan." (Buck Consultants, LLC)

Federal Retirement Thrift Investment Board to Publish Details About Addition of Roth 401(k) Option to Thrift Savings Plan
"The new Roth TSP component will invest an employee's after-tax earnings and cannot be taxed when withdrawn, similar to a traditional Roth IRA. There will be no income limits on earnings from TSP's Roth option as there are on a traditional Roth IRA, which could make the feature more attractive to federal workers and service members." (Government Executive)

Report on 2011 U.S. and Canadian Legislative and Regulatory Developments for Health and Retirement Plans
"Much of the activity related to health care in the U.S. was focused on the implementation of the Patient Protection and Affordable Care Act of 2010 . . . . Retirement security garnered attention with U.S. Congressional hearings, governmental reports and initiatives geared to the consumer." (International Foundation of Employee Benefit Plans)

Consumption Structure, Welfare Goods and Retirement Income: Linking the Ageing Puzzles
"[The authors] found that the relative generosity of welfare systems have a significant negative impact on household saving rate. It can also explain why the increase in longevity does not have had in general a positive impact on the household saving ratio." (Social Science Research Network)

Budget Puts Military Pension Plan in Cross Hairs
"Right now, the system's 20-year vesting rule means many members of the military walk away with nothing, while those who put in 20 years or more can retire with at least half their salary and other lifetime benefits. In 2010, those payments cost the Department of Defense $50 billion. By 2034, it could balloon to $108 billion . . . ." (Pensions & Investments)

[Opinion] Public Pension Propaganda: The Lie
"NCPERS averaged 216 [public pension plan sponsor] responders to a survey who happened to have a funded ratio of 76.1% and Fitch ratings says 70% or above is adequate. . . . Who's to argue? Me." (Burypensions Blog)

[Opinion] Public Pension Propaganda: What They Got Right
"[On Thursday, Jan. 19, 2011] the National Public Pension Coalition held a press conference looking to influence anyone within earshot that public pensions should not be cut and are, in fact, affordable. In this series I will debunk some of their propaganda but, to start off, there is one area where this cabal got it absolutely right: . . . 401(k) plans are a scam perpetrated by employers to avoid obligations and the investment industry looking to siphon off fees. They are certainly inadequate as retirement vehicles." (Burypensions Blog)

The Backdoor Roth IRA, Advanced Version
"You get a backdoor Roth IRA by opening up a nondeductible IRA and converting it to a Roth. You can contribute $5,000 a year?$6,000 if you're 50 or older. You want a Roth because it grows tax-free -- as opposed to tax-deferred -- and when you take money out -- you don't ever have to -- it comes out tax-free." (Forbes.com LLC)

[Opinion] Legislation Would Patch Montana's Broken Retirement System Fund
"Association of Montana Retired Public Employees intends to request that HB632 be again introduced in the 2013 session. While not a perfect solution, this proposal and the changes made by the 2011 Legislature would significantly reduce the 'unfunded liability' of the retirement systems, making them healthy again without radical changes to those pensions already promised public employees." (www.greatfallstribune.com)

[Official Guidance] IRS Notice of Public Hearing on Proposed Rulemaking: Indian Tribal Government Plans (PDF)
"This document announces a public hearing on proposed regulations,(REG?133223?08) relating to Indian tribal government plans." (U.S. Internal Revenue Service)

[Opinion] Video: National Public Pension Coalition's Briefing on America's Public Pension Systems
"The NPCC is comprised of the Service Employees International Union, the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), the American Federation of State, County & Municipal Employees (AFSCME), the American Federation of Teachers, the International Association of Fire Fighters (IAFF), the National Education Association and the National Conference on Public Employee Retirement Systems (NCPERS). The Coalition engages in state-based activities in support of public employee defined benefit pension systems." (C-SPAN)

The Most Important Retirement Stories of 2011
"[T]he biggest stories of 2011 could play out for years to come. So let's take a look in that rear view mirror and see if there's anything we can learn from some of the key stories we tracked . . . in 2011." (Retirement Town Hall)

Dissent Swirls Around Kansas Public Employees Retirement System Reform Plan
"[An attorney delivered a dissenting perspective saying] the majority's report failed to fully address the unfunded liability, imposed a more expensive program on employers and deflated benefits to future retirees." (The Topeka Capital-Journal)

Scriveners' Errors, Drafting Errors, Operational Failures, Retroactive Amendments, Reformations, ERISA, and the Tax Qualification of Pension Plan Trusts, Part II
"Part II focuses on how the courts do and should resolve assertions that benefit entitlements are not determined by the 'unambiguous' terms of an ERISA plan's governing documents other than equitable estoppel claims, which make benefit-like claims based on misbehavior of plan representatives." (Social Science Research Network)

[Opinion] A Retirement Policy Reform Proposal
"[Jane White has] created a retirement reform proposal with the input of leading pension actuaries that makes 401(k) plans walk, talk and quack like pensions by making them more generous, immediate and portable." (Retirement Solutions, LLC)

What's the Tax Advantage of 401(k)s?
"Although the conventional and Roth 401(k)s may sound quite different, in fact they offer virtually identical tax benefits." (Dow Jones & Company, Inc.)

Congress's Six-Figure Benefits Add to $674 Billion Pension Gap
"The federal retirement system has emerged as a cost-cutting target as the government faces a budget deficit exceeding $1 trillion. A 2010 Congressional Research Service study reported that U.S. government pension programs had a shortfall of $674.2 billion, mostly due to insufficient funding for workers hired before 1984." (Bloomberg L.P.)

New Jersey Governor Vetoes Pension Bill
"New Jersey Governor Chris Christie vetoed a bill to take certain non-public sector workers out of the state pension system." (PLANSPONSOR.COM)

[Guidance Overview] 2011 Earned Income and Self-Employment Tax Affect on Pension Calculations
"For years, Code ?164(f) has allowed a self-employed individual to deduct from adjusted gross income one-half of the self-employment taxes (SE Tax) the individual pays. This is designed to put an unincorporated business on an even footing with a corporation. Corporations can deduct the company's share of FICA, which is one-half of the total FICA paid. The 164(f) deduction allows the individual to have the benefit of a similar deduction." (SunGard Relius)

[Opinion] Explaining Plan Changes: Lessons from the Supreme Court in CIGNA v. Amara (PDF)
The lessons go beyond cash balance plan conversions and may apply to changes plan sponsors make in reaction to the health reform law. (Employee Relations Law Journal via Steptoe & Johnson LLP)

Estimates of Federal Tax Expenditures for Fiscal Years 2011-2015
"The Joint Committee staff has made its estimates . . . based on the provisions in Federal tax law as enacted through January 10, 2011. Expired or repealed provisions are not listed unless they have continuing revenue effects that are associated with ongoing taxpayer activity. Proposed extensions or modifications of expiring provisions are not included until they have been enacted into law." (The Joint Committee on Taxation)

Capping 401(k) Plan Deferral Limit Wouldn't Do Much to Fix Budget Deficit
"Researchers with the National Tax Association estimated the long-term effect on tax expenditures of limiting the maximum total deferrals to 401(k)-type plans to $10,000, and found that even at high rates of return, doing so would only decrease the cost of the tax expenditure by at most $33 billion or 2% of the current $1.5 trillion deficit." (PLANSPONSOR.COM)

Increasing Retirement Ages Would Reduce Spending and Limit Benefits
"The Congressional Budget Office released on Jan. 11 an issue brief describing the effect of increases in the eligibility ages for Social Security and Medicare. The CBO found that raising the Medicare eligibility age or the early or full eligibility age for Social Security would reduce federal spending and limit the number of people with access to health insurance." (AdvisorOne)

[Opinion] Public Agencies and Their Unfunded Pension Liabilities
"[F]or those of us who regularly work with public agencies and their retirement obligations, the tendency to discuss 'the pension crisis' at the macroeconomic level allows taxpayers and impacted agencies to rationalize that: (a) if the sky is truly falling, there is nothing we can do about it; or (b) yes, there may be signs of a serious problem, but they involve other parts of the State and other agencies, not us." (Chang Ruthenberg & Long PC)

Five Suggestions to Improve the U.S. Retirement System with Ideas from Other Countries about How to Do It
"1) Raising the minimum pension for low-income pensioners: The [Mercer] study's many dimensions include looking at the minimum percent of the average wage that a single retiree receives in different countries, even if someone has no savings and no work history." (PLANSPONSOR.COM)

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