Since the beginning of the economic downturn we’ve seen a lot of stories in the news about the decline in the funding status of pension plans. Given that pension plans are heavily invested in the stock market, real estate and other assets that have lost significant value in the economic downturn, it would follow suit that the funding levels in these plans have also decreased. (more…)
Earlier this week, the Pension Rights Center’s list of companies that have suspended their 401(k) matching contributions reached 100. (more…)
The Supreme Court recently ruled that a retirement plan could follow its own rules even if they were inconsistent with the terms of a divorce decree. The decision is an important one, not just because of the legal precedent that it sets, but also because it serves as an important warning to anyone who has a retirement savings plan. (more…)
Today, President Obama signed three executive orders aimed at “leveling the playing field” for workers and the labor movement. We at the Pension Rights Center have a few ideas of our own on how President Obama can level the playing field when it comes to the nation’s retirement income system. (more…)
The two stars of this entertaining video give us their unique - and accurate - take on the history of pensions and what led companies to ask for pension funding relief in the financial bailout. (more…)
I recently came across a helpful Department of Labor fact sheet - Your Employer’s Bankruptcy - How Will It Affect Your Employee Benefits? Given the current state of the economy, it’s never too early for workers to know what might happen to their benefits if their employer goes bankrupt. The fact sheet highlights the important fact that, even if an employer declares bankruptcy, its pension assets cannot be touched by the company’s creditors to pay off debt. (more…)
At the Pension Rights Center our happiest moments come when people receive their pensions, sometimes after many years of trying. Thanks to the new Worker, Retiree, and Employer Recovery Act of 2008, signed into law on December 23rd, Rose Colon, a former spouse of a railroad retiree, will finally receive her survivor annuity. (more…)
A recent article in Financial Week revealed a big surprise. ExxonMobil has the most underfunded defined benefit pension plan of all the S&P 500 companies.  Yes, you read that correctly. A company yielding record profits has neglected to adequately fund its pension plan. According to the article, the ExxonMobil pension plan was funded at just above 80 percent at the beginning of 2008. (more…)
What a week. The Lehman Brothers bankruptcy, Merrill Lynch’s sale to Bank of America, and the government rescue of AIG were just the latest upheavals in this churning Subprime Summer. I’ve been getting calls every day from reporters, wanting to interview people who are concerned about their 401(k) accounts.
People are right to be concerned. For many American workers, a 401(k) account will be their only source of retirement income besides Social Security. While one should expect market fluctuations to affect their account balances, no one likes to see their 401(k) take a nosedive. (more…)
In the past few days, large companies on Wall Street have been closing left and right, making the people who work at these companies jittery about many issues, including their retirement security.
The good news for these employees is that the money in their pension and 401(k) plans is protected from creditors, so that even when a company goes into bankruptcy, they don’t have to worry about their retirement money being used to pay back debts instead. (more…)
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