Secondary Tag: Private Pension Plans
Why the Keep Our Pension Promises Act Must Be Passed
Updated: September 9, 2015 On June 18, 2015, Senator Bernie Sanders (I-Vt.) and Marcy Kaptur (D-Ohio) introduced the Keep Our Pension Promises Act of 2015 into the U.S. Congress to stop benefit cutbacks for retirees in certain underfunded multiemployer plans. These cuts were authorized by the Multiemployer Pension Reform Act of 2014. In the Senate, […]
Cash Balance Plans
A cash balance plan is a pension plan that has certain features of a 401(k) plan. A number of companies have converted their traditional pension plans into cash balance plans. This fact sheet describes cash balance plans and outlines the differences between a cash balance plan and a traditional pension plan, and between a cash […]
Pension Freezes
See our list of companies that have frozen or made significant changes to their pension plans. What does it mean to “freeze” a pension plan? When a company freezes its pension plan, some or all of the employees covered by the plan, stop earning some or all the benefits from the point of the freeze […]
Facts About Multiemployer Pension Plan Funding
This fact sheet explains funding issues in multiemployer pension plans and how the guarantee limits set by the Pension Benefity Guaranty Corporation could impact your multiemployer plan pension. Related: Read our summary of the pension cutback provisions (part of the Multiemployer Pension Reform Act of 2014) that were included in the 2014 Omnibus spending law. See a list of […]
The facts about church pension plans
Almost all private retirement plans are required to comply with federal pension and tax laws. There is only one major exception: Church pension plans. Employees covered by church pension plans are denied the basic protections provided to virtually all other private-sector workers who participate in pension plans. Church plans: Do not have to give employees […]
“NAFI” Plans: Federal Retirement Programs Not Funded by the Government
This fact sheet provides an overview of retirement plans that are sponsored by government entities that do not receive funding from Congress. What are Non-Appropriated Fund Instrumentality Retirement Plans? NAFI Retirement Plans are retirement plans sponsored by government entities known as Non-Appropriated Fund Instrumentalities (NAFIs). NAFIs are part of the federal government but they do […]
Saint Peter’s University Hospital Retirement Plan: Responses to statements made in the February 24, 2012 letter and accompanying Q&A
This document is a direct response to the letter and Q&A sent out by Saint Peter’s University Hospital CEO Ronald Rac. Learn more by reading our fact sheet, Saint Peter’s University Hospital Retirement Plan: The law and the facts. 1. Statement: In his February 24 letter Ronald Rak states that Saint Peter’s University Hospital “will seek a […]
Saint Peter’s University Hospital Retirement Plan: The law and the facts
In a letter dated February 24, 2012 to all Saint Peter’s University Hospital Retirement Plan participants, Ronald C. Rak, the hospital’s President and CEO states that a “a review undertaken by our outside pension consultants and attorneys has made clear that Saint Peter’s pension plan has never been – and is not currently – an ERISA […]
Restrictions on Shutdown Benefits
Shutdown benefits are special benefits that some plans provide for workers at a plant or facility that closes. These benefits are especially important to workers who have not yet reached retirement age, but are not in a position to change careers or relocate for work. Shutdown benefits bridge the gap between the time when a […]
Restrictions on Benefit Improvements
The rules prohibit plans from adopting changes that would increase the cost of the plan if it is less than 80 percent funded or if such changes would cause the plan to become less than 80 percent funded. The following changes are prohibited: Increases in benefits Establishing new benefits such as special early retirement benefits […]
Restrictions on Payment of Lump Sums and Accelerated Benefits
A plan is not allowed to pay lump sums if the plan is less than 60 percent funded. A plan subject to this restriction can only pay a monthly benefit equal to a lifetime monthly annuity. If the plan is more than 60 percent funded but less than 80 percent funded, a plan with a […]
Restrictions on Earning Future Pension Benefits
If a plan is less than 60 percent funded in any year, employees will not earn any pension benefits for that year even though they continue working in jobs covered by the plan. At retirement, the employees will receive the benefits they earned up to the point when the benefit accruals stopped. Employers can reinstate […]
