Pension Action E-Newsletter

February 9, 2007

PRC Web Site Highlights International Pensions
A new section on the PRC web site highlights pension and retirement systems in countries around the world. The new International Pensions section features descriptions of innovative concepts pioneered by other countries that may be of interest to policymakers in the U.S. For example, the Netherlands is experimenting with new “collective defined contribution” plans, New Zealand recently enacted a KiwiSaver plan, and the United Kingdom and Australia have clearinghouses to help people find “lost pensions.”

Activities of Other Groups and Activists

  • Helen Quirini and Kevin Mahar, co-chairs of the GE Justice Fund, are continuing their campaign to convince GE to use some of the nearly $50 billion GE Pension Fund to give much-needed cost of living adjustments to the company’s pensioners. They will be holding rallies around the country, and Helen will be introducing a proposal at the company’s April 23rd shareholder’s meeting. If adopted, the proposal would separate the roles of GE’s CEO and the Chairman of its Board of Directors. According to the proxy resolution this could provide greater management accountability to shareholders and lead to a more objective evaluation of the CEO.
  • The Association of BellTel Retirees plans to introduce two proxy proposals at the Verizon shareholders meeting this spring. Bill Jones, President and Executive Director, says that one proposes that shareholders be allowed to vote each year on an advisory resolution related to executive compensation while another would limit the number of boards that directors could sit on.  
  • According to President Jim Norby, at its recent Annual Leadership Conference and Board Meeting, the National Retirees Legislative Network laid out its 2007 legislative agenda, which focuses on health care and pension legislation.

New Report Details How Much Income Retirees Will Have Under Different Plan Designs
A new report released by the Congressional Research Service shows the difference in the amounts individuals will be able to save for retirement if they begin saving at different stages in their lives. The report also highlights the disparity between how much individuals are likely to have for retirement under defined benefit and defined contribution plans. Read the report here: Retirement Savings: How Much Will Workers Have When They Retire?

FAA Announces Plans to Raise Mandatory Retirement Age for Pilots
The FAA has announced that it plans to propose raising the mandatory retirement age for pilots from 60 to 65. An increase in retirement age would allow those pilots who continue to work until age 65 to receive the maximum benefit allowed by the Pension Benefit Guaranty Corporation if their underfunded pension plans terminate. Two unions, the Airline Pilots Association and the Allied Pilots Association, have voiced opposition to the changes. The FAA plans to issue a formal Notice of Proposed Rulemaking and consider public comments before the rule change goes into effect. Read the FAA press release on the proposed increase in retirement age.

Articles Focus on Inadequate Pensions for Several Sports Leagues
In recent weeks, reporters have begun to focus on pensions for athletes. In many sports leagues, the pensions for recently-retired players are much higher than pensions for players who retired many years ago. While the pension plans offered by some sports leagues are better than others, they all recognize the value of providing pension benefits to their retired players. The articles below describe the pensions for various sports leagues.

Other Articles of Interest
Please note that some news web sites require free registration to read an entire article, and some links may expire within several days after the article's publication date. You can find other recent articles in the Pension in the News and PRC in the News sections of our web site.