Only about half of all workers participate in employer-sponsored retirement plans. To foster greater participation among workers who have access to such plans, Congress passed a law that facilitates plan sponsors' adoption of automatic enrollment policies (AEP). To foster greater retirement savings among workers who do not have access to an employer-sponsored plan, proposals have been made for an "automatic IRA" and at the state level for state-based programs. This report determined: (1) what is known about the effect of AEP among the nation's 401(k) plans, and the extent of and future prospect for such policies; and (2) the potential benefits and limitations of automatic IRA proposals and state-assisted retirement savings proposals. Illus.
The Social Sec. (SS) Statement is the Social Sec. Admin. (SSA) main document for communicating with workers about their SS benefits. It shows an individual's annual earnings, payments into SS & Medicare, & projected benefits. The SSA also uses the statement to explain the various types of SS benefits & to encourage greater financial planning for retirement. This report examines: how well recipients understand the current statement; how the SSA is evaluating the statement's understandability; & the promising practices used by private sector co. & other industrial countries. This info. was obtained from a nat. survey & focus groups of statement recipients, officials from 3 countries (Canada, Sweden, & the UK), & other experts. Charts & tables.
Recent market declines have significantly diminished the asset value of state and local pension plans (PP). Reported unfunded liabil. for these plans are estimated in the hundreds of billions of dollars. As a result, in the long term, these governments may need to make significant fiscal adjustments such as modifying employee benefits, or increasing contributions to plans. They may also alter invest. strategies to attempt to maximize returns by assuming increased risk. This report examined: (1) who makes invest. decisions for PP and what guides their decision making; (2) how PP allocate their assets and manage their invest.; and (3) practices that PP are using to meet a range of challenges in governance, invest., or funding. Illus. A print on demand report.
Millions of people rely on the services of Social Security Admin. (SSA) field offices. In FY 2009, SSA¿s approx. 1,300 field offices provided service to a record 45.1 million customers. People visit field offices to apply for Social Security cards, apply for retirement and disability benefits, request replacement benefit checks, and a host of other services. Over the last several years, growing workloads have challenged field offices¿ ability to manage work while continuing to deliver quality customer service. This testimony discusses a Jan. 2009 report on SSA field office service delivery challenges, specifically: (1) the state of SSA field office operations; and (2) the status of SSA¿s efforts to develop a plan to address future service delivery challenges.
American workers increasingly rely on 401(k) plans for their retirement security, and sponsors of 401(k) plans -- typically employers -- have critical obligations under the Employee Retirement Income Security Act of 1974 (ERISA). When acting as fiduciaries, they must act prudently and solely in the interest of plan participants and beneficiaries. This report examined: (1) common 401(k) plan features, which typically have important fiduciary implications, and factors affecting these decisions; (2) challenges sponsors face in fulfilling their fiduciary obligations when overseeing plan operations; and (3) actions labor takes to ensure that sponsors fulfill their fiduciary obligations, and the progress the Dept. of Labor has made on its regulatory initiatives.
The Pension Benefit Guaranty Corp. (PBGC) insures the pension benefits of 44 million private sector workers and retirees in over 30,000 employer-sponsored pension plans. It was reported that PBGC¿s governance structure needed improvements. Congress is considering expanding the board of dir. to include additional members. It was also recommended that the board develop policies and mechanisms consistent with corp. governance practices, and develop formal guidelines to clarify the roles and respon. of the board chair, members, and their rep. This report addresses: the steps PBGC has taken to improve policy direction and oversight; and (2) how Congress applies oversight to PBGC and what other oversight mechanisms exist for gov¿t. corps. Illus.
Millions of people rely on the services of Social Security Admin. (SSA) field offices (FO). In FY 2008, SSA's 1,300 FO provided service to 44 million customers. People visit FO to apply for Social Security cards, apply for retirement and disability benefits, establish direct deposit, and other services. Over the last several years, staffing reductions have challenged FO ability to manage work while continuing to deliver quality customer service. To better understand the challenges SSA faces in delivering quality customer service, this report determined: (1) the effect that staffing reductions are having on FO operations; and (2) the challenges SSA faces in meeting service delivery needs in the future and the agency's plan for addressing them. Illustrations.
Congress created individual retirement accounts (IRAs) with two goals: (1) to provide a retirement savings vehicle for workers without employer-sponsored retirement plans; and (2) to preserve individuals¿ savings in employer-sponsored retirement plans when they change jobs or retire. Questions remain about IRAs¿ effectiveness as a vehicle to facilitate new, or additional, retirement savings. This is a report on: (1) the role of IRAs in retirement savings; (2) the prevalence of employer-sponsored and payroll-deduction IRAs and barriers discouraging employers from offering these IRAs; and (3) changes that are needed to improve IRA information and oversight. Charts and tables.
Millions of state and local gov¿t. employees are promised pension benefits when they retire. There is a fed. interest in ensuring that all Americans have a secure retirement. Recently, new accounting standards have called for the reporting of liabilities for future retiree health benefits. It is unclear what actions state and local governments may take once the extent of these liabilities becomes clear, but such anticipated fiscal and economic challenges have raised questions about the unfunded liabilities for state and local retiree benefits. This is a report on: (1) the current structure of state and local gov¿t. pension plans and how pension benefits are protected and managed; and (2) the current funded status of state and local gov¿t. pension plans. Charts.
Under federal regulations, 401(k) participants may tap into their accrued retirement savings before retirement under certain circumstances, including hardship. This "leakage" from 401(k) accounts can result in a permanent loss of retirement savings. This report analyzes: (1) the incidence, amount, and relative significance of the different forms of 401(k) leakage; (2) how plans inform participants about hardship withdrawal provisions, loan provisions, and options at job separation, including the short- and long-term costs of each; and (3) how various policies may affect the incidence of leakage. To address these matters, the report analyzed federal and 401(k) industry data and interviewed federal officials, pension experts, and plan administrators. Illus.
The Social Security Admin. (SSA) has issued more than 430 million Social Security numbers (SSN) & cards since the program began in 1935, of which an estimated 300 million belong to living number holders. SSNs have a key role in verifying individuals' authorization to work in the U.S., but SSN cards are also vulnerable to theft & counterfeiting. Concerns about unauthorized workers & the use of counterfeit documents led to this report which: (1) reviews SSA's progress to safeguard the SSN & enhance the card as required under the Intelligence Act; (2) identify key issues to be considered before enhancing the card; & (3) outline the range of options available to SSA for enhancing the card. Includes recommendations. Charts & tables.
The number of private defined benefit (DB) pension plans, an important source of retirement income for millions of Americans, has declined substantially over the past two decades. Although this decline has been concentrated among smaller plans, there is a concern that large DB plans covering many participants have modified, reduced, or otherwise frozen plan benefits in recent years. This report examines: (1) what changes employers have made to their pension and benefit offerings, including to their DB contribution plans and health offerings over the last 10 years or so; and (2) what changes employers might make with respect to their pensions in the future, and how these changes might be influenced by changes in pension law and other factors. Illus.
Voting is fundamental to the U.S. democratic system and federal law provides broad protections for people with disabilities, including older voters. Many long-term care facility residents, who often have physical or cognitive impairments, vote by absentee or early ballot. Concerns have been raised about the extent to which states and localities are helping the increasing number of facility residents exercise their right to vote, especially those requiring voting assistance, who may be subject to undue influence or unauthorized completion of their ballot by facility staff or relatives. Given these concerns, this report identified the actions taken to facilitate and protect voting for long-term care facility residents at: (1) the state level; and (2) the local level. Charts and tables.
Some U.S. financial and pension consulting firms have recently proposed alternatives to terminating a defined benefit (DB) pension plan and contracting with an insur. co. to pay promised benefits. In their proposals, a plan sponsor would transfer the assets and liabilities of a hard-frozen DB plan along with additional money to a financial entity, which would become the new sponsor. This report addresses the following questions: (1) What is the basic model of proposed sales of frozen DB plans to third-party financial firms and how does it compare with a standard plan termination? (2) What are the potential risks and benefits of plan buyouts for participants, the Pension Benefit Guaranty Corp. (PBGC), plan sponsors, and other stakeholders?
Employer-sponsored defined benefit pension plans (DBPP) face unprecedented challenges in the midst of significant changes in our nation's retirement landscape. Many DBPP & the fed. agency that insures them, the Pension Benefit Guaranty Corp. (PBGC), have accumulated large & growing deficits that threaten their survival. Meanwhile, the percentage of Amer. workers covered by DBPP has been declining for 30 years, reflecting a movement toward defined contribution plans (e.g., 401(k) plans). To address these issues, a diverse group of knowledgeable individuals was convened -- incl. gov't. officials, researchers, accounting experts, actuaries, plan sponsor & employee group rep., & members of the investment community. Charts & tables.
Fed. law requires polling places to be accessible to all eligible voters for fed. elections, incl. voters with disabilities. However, during the 2000 fed. election, only 16% of polling places had no potential impediments to access for people with disabilities. To address these issues, Congress enacted the Help America Vote Act of 2002 (HAVA), which required each polling place to have an accessible voting system. This report examined: (1) the proportion of polling places during the 2008 federal election with features that might facilitate or impede access for voters with disabilities compared to findings from 2000; (2) actions states are taking to facilitate voting access; and (3) steps the Dept. of Justice has taken to enforce HAVA voting access provisions.
The Pension Benefit Guaranty Corp. (PBGC) insures the retirement future of nearly 44 million people in more than 30,000 private-sector defined benefit pension plans. In July 2003, PBGC¿s single-employer pension insurance program was designated as ¿high risk,¿ meaning that it needed urgent attention and transformation. The program remains on the list today with a projected financial deficit of over $13 billion, as of Sept. 2007. Because Congress exercises oversight of PBGC, the author was asked to testify on: (1) the critical role PBGC plays in protecting the pension benefits of workers and how PBGC is funded; (2) the financial challenges facing PBGC; and (3) the PBGC¿s governance, oversight and management challenges. Tables.
Federal law requires polling places for federal elections to be accessible to older voters & voters with physical disabilities. Following reports of problems encountered in the close 2000 presidential election with respect to voter registration lists, absentee ballots, ballot counting, & antiquated voting systems, the Help Amer. Vote Act of 2002 (HAVA) was enacted. Among HAVA includes requirements for the accessibility of voting systems. This testimony focuses on: (1) a variety of factors that affect the ability of older voters to travel to polling places, cast their votes in the voting room, or avail themselves of alternative voting provisions; & (2) trends & changes regarding the accessibility of polling places & alternative voting methods. Illus.
Under the single-employer insur. program, the Pension Benefit Guaranty Corp. (PBGC) may become the trustee of underfunded plans that are terminated and assume responsibility for paying benefits to participants as they become due, up to certain legal limits. From its inception in 1974 through the end of FY 2008, PBGC has terminated and trusteed 3,860 single-employer plans covering 1.2 million workers and retirees. Since 2008, the economic downturn has brought a new influx of pension plan terminations. This testimony describes: (1) PBGC's process for determining the amount of benefits to be paid; and (2) PBGC's recoupment process when the estimated benefit provided is too high and a retiree receives an overpayment that must be repaid.
As people age, some become incapable of managing their personal & financial affairs. To protect these people, state laws provide for court appointment of guardians to act on their behalf. In many cases federal programs provide these incapacitated people financial benefits. This report examines: (1) what state courts do to ensure that guardians fulfill their responsibilities, (2) what guardianship programs recognized as exemplary do to ensure that guardians fulfill their responsibilities, & (3) how state courts & federal agencies work together to protect incapacitated elderly people. Recommendations included. Charts & tables.
The fed. workforce, like the nation's workforce as a whole, is aging, and increasingly large percentages are becoming eligible to retire. Eventually, baby boomers will leave the workforce and when they do, they will leave behind gaps in leadership, skills, and knowledge due to the slower-growing pool of younger workers. This report examines: (1) age and retirement eligibility trends of the current fed. workforce and the extent to which agencies hire and retain older workers; (2) workforce challenges selected agencies face and the strategies they use to hire and retain older workers; and (3) actions taken by the Office of Personnel Mgmt. to help agencies hire and retain experienced workers. Includes recommendations. Charts and tables.
Thirty years ago Congress enacted protections to ensure that participants in multiemployer pension plans received their promised benefits. These defined benefit plans are created by collective bargaining agree. covering more than one employer. Today, these plans provide pension coverage to over 10.4 million participants in approx. 1,500 multiemployer plans insured by the Pension Benefit Guaranty Corp. (PBGC). This report examines: (1) the current status of nation's multiemployer plans; (2) steps PBGC takes to monitor the health of these plans; (3) the structure of multiemployer plans in other countries; and (4) statutory and regulatory changes that could help plans provide participants with the benefits they are due. Illus. This is a print on demand report.
Many U.S. workers receive health & pension benefits from employers, & the cost of these benefits represents a growing share of workers¿ total compensation. Employers have made changes to control these rising costs, contending that these changes will allow them to remain competitive in an increasingly global market. This report examines the practices employers are using to control the costs of benefits. To evaluate changing employer benefit practices & their implications, the author examined: (1) current & emerging practices employers are using to control the costs of health care benefits, & retirement benefits; & (2) employers¿ workforce restructuring changes. Charts & tables.
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