Retirement Income

We’re seeing greater emphasis on new ways to provide plan participants with retirement income options, driven primarily by policymakers at the Department of Labor and greater demand among plan sponsors. Here you’ll find coverage of news and developments in Washington, as well as new products and plan design changes like stream of payment options as alternatives to lump sum distributions.


Retirement Income

Retirement Income

By Andrew Remo8/14/2014 • 0 Comments

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. 

READ MORE

By ASPPA Net Staff8/8/2014 • 0 Comments

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. READ MORE

By John Iekel8/8/2014 • 0 Comments

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 retirement policy proposals.  READ MORE

By ASPPA Net Staff8/6/2014 • 0 Comments

Maryland Gov. Martin O’Malley (D) has named the members of a panel charged with finding “…ways to better secure retirement savings for private-sector employees in Maryland.” Established by executive order in May and chaired by former Lt. Gov. Kathleen Kennedy Townsend (D), the task force brings together representatives from key sectors across the state to find ways to better secure retirement savings for private-sector employees in Maryland.  READ MORE

By John Iekel7/28/2014 • 0 Comments

Plan participants take money out of their 401(k)s prematurely for different reasons — such as plan loans and hardship withdrawals. But the biggest driver of leakage, according to the Employee Benefit Research Institute (EBRI), is cashing out when changing jobs.  READ MORE

By John Iekel7/9/2014 • 0 Comments

The Department of Labor’s Employee Benefits Security Administration has announced that its ERISA Advisory Council will be examining issues and considerations related to facilitating lifetime retirement plan participation. In explaining its rationale for doing so, it cites the recent movement of participant assets out of defined contribution and defined benefit plans, and into retirement accounts not covered by ERISA — such as IRAs or other savings accounts — or as plan distributions.  READ MORE

By John Iekel7/2/2014 • 0 Comments

The Treasury Department issued a rule July 1 that essentially allows employees to convert part of their IRA or 401(k) balances into a longevity annuity. Under the rule, an IRA or 401(k) can allow participants to use $125,000 or up to 25 percent of their IRA or 401(k) — whichever is less — to buy a longevity annuity. The dollar limit will be adjusted for inflation in $10,000 increments.  READ MORE

By John Iekel6/26/2014 • 0 Comments

Early withdrawals — loans taken against plan balances, hardship withdrawals and retirement account payouts when changing jobs — can provide participants quick infusions of cash that help meet pressing needs. But these forms of “leakage” can come at the expense of their future retirement security. A new analysis by the Employee Benefit Research Institute (EBRI) provides empirical data on the full impact of leakage on 401(k) balances.  READ MORE

By John Iekel6/26/2014 • 0 Comments

At their current savings rate, many Americans will have tough choices to make as they age. Not only that, but a low savings rate has broader serious implications for the U.S. economy and its solvency. “Another Penny Saved: The Benefits of Higher U.S. Household Saving,” a paper by Oxford Economics, paints a sobering picture of the current savings rate and its consequences for retirement. But it also offers some suggestions regarding how to address and maybe even reverse it, and what could result from that. READ MORE

By John Iekel6/13/2014 • 0 Comments

Funds held in inherited IRAs are not retirement funds and must be included in a bankruptcy estate, the U.S. Supreme Court ruled June 12. The Court’s 9-0 ruling in Clark v. Rameker, No. 13-299 (U.S. 6/12/14), aff’d 714 F.3d 559 (7th Cir. 2013)) was definitive in drawing a distinction between inherited IRAs and retirement funds, and between inherited IRAs and other funds to which the Bankruptcy Code’s exemptions apply. The Court’s ruling ended years of ping-pong litigation in which successive courts reversed decisions by lower courts.  READ MORE

By John Iekel6/10/2014 • 0 Comments

Many sobering reports have been issued regarding the degree to which U.S. workers are preparing — or not — for retirement. The Bipartisan Policy Center’s (BPC) Personal Savings Initiative (PSI) may not be the first effort that seeks to help turn the tide of poor savings rates, but it has heft and features a far-reaching and ongoing discussion of the problem and ways to address it.  READ MORE

By John Iekel6/9/2014 • 0 Comments

Plan sponsors are committed to helping plan participants prepare for their retirement, says a study Brightwork conducted for the Principal Financial Group. The study looked at the responses of 283 plan sponsors, all of whom offer a 401(k), have more than 50 eligible employees and use the services of a paid professional to help them choose and monitor investment and service providers, design plans, conduct enrollment meetings and resolve problems with service providers.  READ MORE

By John Iekel6/8/2014 • 0 Comments

The federal government and U.S. workers agree that the Affordable Care Act (ACA) — a.k.a. Obamacare — will affect the timing of retirements. However, IFAwebnews reports that there’s a wide gap between what the government and many workers expect that effect to be, according to a survey conducted for MoneyRates.com.

READ MORE

By John Iekel6/3/2014 • 0 Comments

When it comes to having sufficient funds during retirement, expectations are low and fears rife everywhere, according to a recent study. In “The Changing Face of Retirement: The Aegon Retirement Readiness Survey 2014,” the Transamerica Center for Retirement Studies and Aegon polled 16,000 employees in 15 counties in North and South America, Europe and Asia and found that while a growing number of respondents expect their finances — and their countries’ economies — to improve in the short term, that optimism does not translate to confidence about the more distant future. 
READ MORE

By John Iekel6/2/2014 • 0 Comments

Fear of running out of money during retirement is common, but it’s mitigated by interest in saving — the importance of which is not lost on younger employees, according to a new BoA Merrill Lynch report. The Spring 2014 Merrill Edge Report is based on a semi-annual study that looks at the concerns of the “mass affluent” — those with household incomes between $50,000 and $250,000. READ MORE

By John Iekel5/24/2014 • 0 Comments

A May 21 Senate Finance subcommittee hearing that purported to be about strengthening Social Security morphed into a critical discussion of the merits of the defined contribution system and industry.  READ MORE

By Andrew Remo5/22/2014 • 0 Comments

The Joint Economic Committee, a bicameral congressional committee charged with studying matters relating to the United States economy, held a hearing May 21 that examined the unique issues that women face in retirement. Sen. Amy Klobuchar (D-Minn.), vice-chair of the committee, convened the hearing to follow up on a report the committee issued in April which concluded that due to lower lifetime earnings, women age 65 and older collect $11,000 less in annual median income than men. READ MORE

By Andrew Remo5/14/2014 • 0 Comments

Lauding the federal Thrift Savings Plan as “one of the most efficient savings plans in America,” Sen. Marco Rubio (R-Fla.) urged that the DC plan for federal employees be made available to private workers nationwide. READ MORE

By John Iekel5/7/2014 • 0 Comments

Much has been made about providing fee disclosure statements to plan sponsors and participants. But a paper by Mercer and the Stanford Center on Longevity, “Retirement Income Statements May Help Avert a Looming Crisis,suggests that participants would be at least as interested — if not moreso — in electronic statements about projected retirement income from their accounts. READ MORE

By John Iekel5/7/2014 • 0 Comments

The funded status of private- and public-sector pension plans is a classic example of bad news/good news. To wit: Corporate pensions’ funded status fell in April, but only very slightly; and some states’ pensions are in bad shape, but funding of public-sector pension plans overall is improving.  READ MORE

«« First |1 2 3 4 5 6 7 ... 25 26 27 28 29 | Last ››