Pension Rights Center: News | Pensions in the News

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The 401(k) Turns Thirty Years Old

BusinessWeek – March 15, 2010
The defined-contribution plan revolutionized retirement for U.S. workers. After three decades and the Great Recession, key fixes are needed

Ford Didn't Interfere with Benefits by Classifying Visteon Employees as Rehires

PlanSponsor – March 12, 2010
A federal appeals court has ruled that Ford Motor Company did not interfere with the retirement plan benefits of employees reacquired from two previously spun-off production facilities by classifying them as rehired rather than reinstated.

Soon-to-be retiree questions future of his pension

Dallas Morning News – March 11, 2010
I have the option of taking my pension as a lump-sum payment or annual payments for life. I prefer the annual payments, but what happens if my retirement plan is terminated for some reason?

GM holds line on Delphi pensions

Oakland (MI) Press – March 9, 2010
General Motors Corp. has declined to negotiate over a decision that shifted responsibility for the pensions of thousands of salaried Delphi retirees to the federal Pension Benefit Guaranty Corp.

Three ways to boost your confidence about retirement

MarketWatch.com – March 9, 2010
I know, I know, we're starting to sound like a broken record, or MP3 player. But researchers are once again sounding the alarm that Americans are not saving enough for retirement.

Market rebounds, but workers have minimal savings

Associated Press via Yahoo! News – March 9, 2010
The prolonged recession is making it harder for many workers to set aside money for retirement.

Employer Can Reduce Monthly Pension to Fix Error

PlanSponsor – March 8, 2010
A federal court has ruled that an employer did not breach its fiduciary duties by decreasing a retiree's monthly pension check to recover overpayments made to him due to a miscalculation of his benefit amount.

Corporate America Scrutinizes Its 401(k)'s

TheStreet.com – March 8, 2010
Companies are increasingly scrutinizing 401(k) providers as they restore employee matches following a year of drastic cost cutting.

Camp to co-sponsor bill seeking answers on Delphi Corp. pensions

Saginaw News – March 5, 2010
U.S. Rep. Dave Camp announced Thursday he will co-sponsor a bill seeking answers to why some Delphi Corp. pensioners in the Great Lakes Bay Region are slated to get reduced monthly benefits.

YRC's next challenge: pensions

DC Velocity – March 5, 2010
After brush with bankruptcy, troubled trucker now faces $500 million in pension obligations to unionized employees.

Joint Automaker Pension Plan Being Taken Over by PBGC

Workforce Management – March 4, 2010
The PBGC has determined that the plan will be abandoned as a result of the plant closure, leaving the company unable to pay benefits, according to a news release.

Retirement funds can be used as capital

Green Bay Press-Gazette – March 4, 2010
You might have seen the ads. The headline shouts, "Use 401(k) savings to start a business without getting hit by taxes and early-withdrawal penalties."

Pensions Still Fall Short As A Retirement Parachute

Morning Edition – March 4, 2010
Most American workers were woefully unprepared for retirement before the financial crisis struck. The stock market crash that followed made things even worse.

Partner In Time: Retirement Funds You Can Age With

Morning Edition – March 3, 2010
Investing for retirement can be complicated. There's lots of jargon, lots of investment choices and lots of worry about whether your investments are safe.

Advice you can count on?

Marketwatch.com – March 2, 2010
Financial advisers split on whether proposed 401(k), IRA rules will help or hurt investors

Rebuilding A Nest Egg After The Great Recession

Morning Edition – March 2, 2010
The stock market plunge caused by the financial crisis blew a big hole in lots of retirement accounts.

Labor Department Announces New Retirement Account Rules

U.S. News & World Report – March 1, 2010
The first proposed rule aims to ensure workers receive unbiased advice when choosing 401(k) and IRA investments.

Pension bill may save jobs

Columbus Dispatch – February 28, 2010
It is an example of that most elusive of creatures these days on Capitol Hill: an issue that finds common ground among Democrats and Republicans, labor unions and businesses.

Retirement Safety Comes with Earnings Cap

U.S. News & World Report – February 28, 2010
You probably know that the White House's middle class task force has proposed a new retirement account.

Biden task force: Protect retirement savings by regulating 401k advice

Christian Science Monitor – February 26, 2010
Vice President Biden seeks to regulate the type of advice financial planners offer American workers.

Bernie's Employees Say Company Taking Money Out Of Their 401(k)

Hartford Courant – February 25, 2010
Bernie's employees are angry that money has been deducted from their 401(k) accounts to pay the cost of winding down the bankrupt company's plan.

Make the best of a bad 401(k)

CNN/Money – February 24, 2010
It's important to remember that short-term market gyrations are unlikely to determine your ultimate success or failure as a retirement saver.

Options for moving your 401(k) funds

Boston Globe – February 23, 2010
In general, the ability to move funds between 401(k) plans is dependent upon the provisions of each employer's specific 401(k) plan.

RIAs Say $1M in Retirement Savings Is not Enough

PlanSponsor – February 23, 2010
While $1 million is frequently referenced by Americans as a standard level of retirement savings for average families, a new survey finds most registered investment advisers do not agree.

More 401(k) plan sponsors are dissatisfied with their recordkeepers

Employee Benefit Adviser – February 23, 2010
Among sponsors of 401(k) plans, overall satisfaction with their recordkeepers is down 30% to 40% across all markets, according to 401kExchange.

8 Factors that Determine Your Final 401(k) Balance

U.S. News & World Report – February 22, 2010
Savings and investment choices aren’t the only things that influence the size of your next egg

Hecker gets $125,000 to repay 401(k), avoid jail

Star Tribune (Minneapolis, MN) – February 22, 2010
He had liquidated the fund without his ex-wife's OK. The judge in his divorce case told him to repay it or serve time in jail.

Pension cuts expected for some Delphi union retirees

Journal Sentinel (Milwaukee, WI) – February 21, 2010
Several hundred Delphi Corp. union retirees could have their retirement benefits slashed soon, joining thousands of retired salaried workers whose pensions also are being reduced as the federal government takes over the company's depleted retirement funds.

Retirement Olympics: Canada Beats United States

BNet/MoneyWatch – February 21, 2010
This may be of little immediate comfort to Canadians nursing the national deflation of the surprising 5-3 hockey thumping delivered Sunday night by Team USA, but when it comes to retirement security Canadians have our number.

Employers bring 401(k) match back

Tennessean – February 20, 2010
In the recent economic recession, an estimated 15 percent of U.S. employers suspended or reduced matching contributions to employee 401(k) plans as part of efforts to reduce expenses.

Milwaukee Forge likely to be sold

Journal Sentinel (Milwaukee, WI) – February 19, 2010
Buyer may keep workers but not pension, retirement debts

Workers Choose Delayed Retirement Over Saving More

U.S. News & World Report – February 19, 2010
Workers who haven’t saved enough to retire generally have three choices: save more, work longer, or consume less in retirement.

Judge rules Visteon pensioners can remain part of creditors' committee, greenlights bonuses for execs

Crain's Business Detroit – February 19, 2010
The Delaware judge overseeing the Chapter 11 bankruptcy case of Visteon Corp. ruled Thursday that pensioners could retain their three representatives on the nine-person committee of unsecured creditors.

Decline of pensions forces workers to rethink retirement investments

Greenville (SC) News – February 17, 2010
Around the country, businesses have terminated company retirement plans in an uncertain economy, putting more pressure on workers to save for their futures.

10 Ways Baby Boomers Will Reinvent Retirement

U.S. News & World Report – February 16, 2010
The baby boomers redefined each stage of life as they passed through it. This generation also will retire in a way that is distinct from their parents and will set the standard for generations to come.

Entrepreneurs turn to 401(k)s to fund start-up businesses

USA Today – February 15, 2010
Relying on retirement savings to fund a business venture is a significant gamble.

Pension is players' safety net

Las Vegas Review-Journal – February 15, 2010
Marion, other local pros grateful for annual retirement benefits as high as $195,000

Separate committee urged for Visteon pensioners

Reuters – February 12, 2010
The official committee of unsecured creditors of bankrupt auto parts maker Visteon Corp has requested that pension participants on its committee be removed and form their own official committee, according to court documents.

Time to speak up for -- or against -- annuities

MarketWatch – February 11, 2010
Uncle Sam wants you. Or at least he wants your opinion about your retirement plan.

County employee's widow asks board to change pension plan

Citizen's Voice (Wilkes-Barre, PA) – February 10, 2010
The widow of a retired Luzerne County employee asked the county retirement board on Tuesday to let her change the pension option her husband selected before he died in February 2008.

Employees Speak: Automate my 401(k). Now!

BNet/MoneyWatch – February 10, 2010
It’s official. American workers have had it up the here with all the choice and control over managing their 401(k)s.

Insurers Test Market as Obama Opens Door for 401(k)s

Bloomberg News – February 9, 2010
Insurers and mutual-fund companies are starting to sell retirement accounts with built-in annuities in response to concerns Americans will outlive their savings.

6 Ways Employers Will Change 401(k)s in 2010

U.S. News & World Report – February 9, 2010
Employers plan to get more involved in their 401(k) plans in 2010.

An Employer's Retirement Plan Dilemma

BusinessWeek – February 9, 2010
Experts offer ethical and legal advice to a small business owner who promised to contribute to employees' retirement plans but failed to do so.

7 Reasons Job Hoppers Are Worse Off in Retirement

U.S. News & World Report – February 8, 2010
Frequently changing jobs can make it more difficult to save for retirement.

The 401(k) match is back!

CNN/Money – February 8, 2010
Employees who took a hit on their savings last year might finally be in for some welcome news: Companies are stepping up efforts to help them save more for retirement.

Lengthening life spans affect savings plans

Dallas Morning News – February 8, 2010
Ever thought of the possibility that you could live to be 100?

Employers less confident in workers’ ability to retire

Pensions & Investments – February 8, 2010
Fifty-four percent of employers surveyed by Hewitt Associates are confident about employees’ ability to retire with “sufficient retirement assets,” down from 66% in a similar survey a year earlier, confirmed Hewitt spokeswoman Catherine Brandt.

State workers rally against bills to change retirement

Salt Lake Tribune – February 6, 2010
Several hundred public employees and retirees rallied Saturday at the state capitol, speaking out against legislative efforts to restructure the state's retirement system.

Delphi salaried retirees unite to fight deep pension cuts

Vindicator (Youngstown, OH) – February 5, 2010
Delphi Packard retirees met to talk about how they can restore their benefits.

Can the U.S. government require you to get an IRA?

Washington Post – February 5, 2010
One of the biggest priorities for the Middle Class Task Force led by Vice President Biden is a push to improve and standardize American retirement planning.

Pomeroy introduces legislation for pension funding relief

Grand Forks Herald – February 5, 2010
The nation’s economy will take a big hit if employers don’t receive more time to fully fund their pension plans, Rep. Earl Pomeroy, D-N.D., said Thursday.

Seeking Security for Retirement Funds

Governing – February 4, 2010
Pension-exchanges for IRAs and 401(k)s would strengthen President Obama's initiatives.

Kissell seeks to help protect veterans' pensions

Salisbury (NC) Post – February 4, 2010
Rep. Larry Kissell (N.C.-08) is co-sponsoring the Veterans Pensions Protection Act. This legislation is intended to protect veterans from losing their pension if they receive payments to cover expenses incurred after an accident, theft or loss.

Towers Watson Finds DB Plans Outperformed DC Plans

PlanSponsor – February 3, 2010
Rates of return for defined benefit (DB) pension plans outpaced those for defined contribution (DC) plans, including 401(k) plans, in 2007 and 2008, according to a new analysis by Towers Watson.

Defined benefit plans outpace 401(k) returns: Analysis

Business Insurance – February 3, 2010
Defined benefit pension plans are consistently earning higher rates of return than 401(k) plans, according to an analysis released Wednesday.

Why Employers Suspend 401(k) Matches

U.S. News & World Report – February 3, 2010
Approximately 218 companies suspended their 401(k) match between January 2008 and November 2009, according to a new analysis by the Center for Retirement Research at Boston College.

Delphi salaried retirees take pension hit

Journal-Sentinel (Milwaukee, WI) – February 1, 2010
Now, Richards and thousands of other Delphi salaried retirees could see their monthly pension checks cut between 30% and 70% as the government-run Pension Benefit Guaranty Corp. has taken over the company's retirement fund.

Obama Retirement Proposals Tell a Sad Story

U.S. News & World Report – February 1, 2010
Arguing against new government inducements to improve retirement plans is an uncomfortable place to be. Who could possibly be opposed to the goal of a comfortable retirement?

Court Allows Annuity Contracts Beneficiary Switch

PlanSponsor – January 29, 2010
A federal judge in Pennsylvania has ruled that a participant in TIAA-CREF annuity contracts met the requirements to change his beneficiary from his ex-wife to his long-time friend.

Sacred Heart nurses picket over breaks, benefits

Spokesman-Review (Spokane, WA) – January 29, 2010
Nurses also are upset with the hospital’s proposal to change their retirement benefits, essentially ending contributions to a traditional pension plan that gives a guaranteed payment and replacing it with a riskier retirement plan exposed to stock market gyrations.

5 Uniquely American Responses to the Financial Crisis

U.S. News & World Report – January 29, 2010
The financial crisis had a bigger impact on American’s retirement plans than on people in other parts of the world.

The Unloved Annuity Gets a Hug From Obama

New York Times – January 29, 2010
Annuities: The official retirement vehicle of the Obama administration.

Participants not Due Additional Benefits Based on Defective SPD

PlanSponsor – January 29, 2010
A federal court has ruled that cash balance plan participants are not due additional benefits because a Summary Plan Description (SPD) failed to inform them of an offset to their benefits calculation.

Survey: 84% Would Welcome Fully Automated 401(k) Plans

Financial Planning – January 29, 2010
The Recession has prompted an overwhelming majority of American workers to believe it’s time for a new and improved model for workplace retirement programs, Prudential Financial found in a survey.

U.S. Supreme Court hears Xerox pension arguments

Rochester Democrat and Chronicle – January 29, 2010
A legal fight regarding Xerox Corp. retirement benefits is now in the hands of the U.S. Supreme Court.

Recession Has Taken Toll on Employee Retirement and Benefits

PlanSponsor – January 28, 2010
More than half (52%) of respondents to a Towers Watson survey said the percentage of their employees working past their desired retirement age is higher than it was before the financial crisis.

Pensions to drop Monday for Delphi salaried retirees

Detroit News – January 28, 2010
More than 500 of auto supplier Delphi's salaried retirees will start receiving reduced pension checks starting Monday, after a federal judge in Detroit this week refused to block the move.

Obama makes auto IRA, retirement savings a focus

Associated Press via Yahoo! News – January 28, 2010
President Barack Obama is launching an effort to help Americans save more for retirement, hoping a government nudge or two can get them to do what many are unable to do on their own.

Cashing out of your 401(k) should be a last resort

Pittsburgh Post-Gazette – January 28, 2010
Strapped for cash, many are tempted to tap into their 401(k) retirement accounts.

401(k) loan from old job unlikely

Bankrate.com – January 28, 2010
I have a 401(k) account with a prior employer. If I want to take a 401(k) loan out against it, can I do so, even though I am no longer employed by that company and don't currently make contributions to it?

Maximize Your 401(k) By Learning and Cutting Fees

Associated Press via the Lakeland Ledger – January 27, 2010
Retirement savings is a central topic in the Obama administration's proposed initiatives to help struggling middle class families. And one of the concerns to be addressed is improving the ability of workers to determine how much they're paying for the management of their 401(k) plan.

Looking for a fix for retirement security

MarketWatch – January 27, 2010
Obama's proposals don't go far enough, some retirement experts say

Americans Aware They Need to Improve Retirement Saving

PlanSponsor – January 27, 2010
Most Americans (58%) said they have a gap in their retirement savings, according to a recent survey.

Couple has solid footing for retirement

Dallas Morning News – January 25, 2010
Rafael Flores has until the end of this month to decide whether he wants to retire from a 26-year career with the federal government.

Planning For Income From Your 401(k)

Investor's Business Daily via Yahoo! Finance – January 22, 2010
So your 401(k) account took a big hit during the 2007-09 bear market. But it's been recovering nicely since March of last year, thank you very much.

Fees Damage Savings More Than Stock Slump

TheStreet – January 22, 2010
The stock-market crash swiftly dragged down Americans' retirement plans, but fees paid year after year may be more of a drain.

Federal agency tracks pensions

Fayatteville Observer – January 20, 2010
Where can I go for information about my pension plan?

U.S. pension agency dogged by 'hard times,' prospective chief says

Detroit News – January 20, 2010
The nominee to head the government's pension insurer said today the agency is going through "hard times."

Supreme Court won't review 401(k) suit against Deere, Fidelity

Pensions & Investments – January 19, 2010
The U.S. Supreme Court today rejected a review of the dismissal of a lawsuit against Deere & Co. and two Fidelity Investments units, claiming unreasonable fees were charged for investment options in Deere's $3.1 billion 401(k) plan.

Retirement expert urges diversity in 401(k) options

USA Today – January 19, 2010
Even before the economic downturn, the USA faced a retirement crisis.

Changes to your retirement plan are coming

Marketwatch.com – January 19, 2010
In wake of stock-market downturn, lawmakers eager to tweak 401(k) rules

How Retirees Saved the Banks

New York Times – January 18, 2010
If you’re a retiree who relies on interest income, you know that the tap is running dry. In fact, many investors in certificates of deposits, savings accounts and money market accounts are losing money once taxes and inflation are subtracted from today’s extremely low yields.

Retirement planning should consider how much you need to withdraw each year

Dallas Morning News – January 17, 2010
For most of us, the immediate goal is to save enough for retirement so we can have a comfortable lifestyle and not have to eat cat food.

401(k) Benefits Properly Paid to Ex-Wife

PlanSponsor – January 15, 2010
A federal judge in Massachusetts has rejected claims that a deceased 401(k) participant’s plan balance should have been paid to his estate instead of to his ex-wife who was the named beneficiary on the account.

Bankruptcy Doesn’t Relieve Plan of ERISA Mandates

PlanSponsor – January 15, 2010
A Department of Labor (DoL) administrative law judge has rejected the appeal by a 401(k) plan administrator of an $86,500 civil penalty, ruling the administrator’s bankruptcy did not relieve it of requirements to properly file an annual report.

Required Minimum Distributions are Back

Boston Globe – January 13, 2010
Late in 2008, when the markets were doing so poorly, Congress passed a law that suspended Required Minimum Distributions (RMDs) from IRAs, 401(k)s, 403(b)s and other defined contribution plans for 2009. (The provision applied to inherited IRAs as well.)

Over half of DC plans to reinstate match in 2010 — Callan

Pensions & Investments – January 12, 2010
More than half of companies that dropped or cut their defined contribution matches in 2009 expect to reinstate the matches in 2010, according to a Callan Associates survey.

Believe it - you are on your own for retirement

Star Tribune (Minneapolis, MN) – January 12, 2010
Fresh evidence proves that, yes, you are on your own for retirement.

Survey Lies. The 401(k) Still Needs a Fix

BNet/MoneyWatch – January 11, 2010
The Investment Company Institute, the trade group for mutual fund companies, released a survey about 401(k)s Friday that suggested the nation’s de facto retirement plan was working just fine, thank you very much.

Participant Behaviors do not Match Target-Date Assumptions

PlanSponsor – January 11, 2010
A new report says actual participant behavior is more varied and volatile than most target-date funds assume.

How Does Your Small Business 401(k) Stack Up?

Forbes – January 11, 2010
Here's what to ask in a do-it-yourself check-up of your company retirement plan.

John Hancock, Are You a Real 401(k) Fiduciary?

DailyFinance – January 6, 2010
John Hancock is a big player in the 401(k) market. According to its website, the Boston-based financial services giant is the No. 1 full-service provider to 401(k) plans. It serves over 42,000 plans with more than 1.7 million participants. Whether these participants will retire in dignity or in poverty depends largely on the quality of the investment options offered by John Hancock.

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