Many of the survey results support what we’ve been saying all along:  people don’t save enough for retirement and they have a hard time saving for retirement. According to the survey, 42 percent of workers aged 45 and older have savings and investments under $25,000. Since 1993, the percentage of workers who are not confident about having enough money in retirement has almost doubled - from 25 percent to 46 percent. And more people expect to have to work longer. Mathew Greenwald stated 

Twenty-four percent of workers in the 2010 RCS say that they have delayed their retirement age in the past year. And while the age at which workers plan to retire shows little change between 2009 and 2010, it has crept up incrementally over time. In particular, the percentage of workers who expect to retire after age 65 has increased from 11 percent in 1991 to 14 percent in 1995, 19 percent in 2000, 24 percent in 2005, and 33 percent in 2010.

Not surprisingly, the recent recession has caused “a significant long-term drop in the public’s view of stocks as an investment.” Seeing those 401(k) balances plummet over the last two years has truly been a wake-up call about the insecurity of these retirement savings vehicles.

Both EBRI’s survey and the latest edition of the National Retirement Risk Index from the Center for Retirement Research at Boston College illustrate in very different ways why retirement income must be a priority in this country. EBRI sees the results of its survey as an opportunity to educate workers about the need to save for retirement, about how much is needed in retirement, and about the importance of making sure your retirement money lasts. While these are important lessons, I don’t think they will begin to solve the nation’s retirement income crisis. 

What else can be done?  We need a new universal, secure, and adequate private retirement system, of course!

This “criticism” has me growling and barking. As a dog-owner I personally contribute to the Humane Society. I know that the work that they do is worthwhile. 

Ironically, thanks to this ad, I feel even more committed to the Humane Society, knowing that it provides pensions for its employees, ensuring that workers today will have money for tomorrow.

Thank you, Humane Society, for not just being humane toward animals but towards people, too.

*I must point out that the Center for Consumer Freedom is a front group funded by corporations (such as tobacco giant Philip Morris) to attack campaigns that promote a healthier lifestyle. The Center’s other targets include the Centers for Disease Control for its anti-obesity efforts and Mothers Against Drunk Driving for trying to strengthen drunk-driving laws.

▪    The U.S. Department of Labor has published a helpful booklet about Qualified Domestic Relations Orders called The Division of Retirement Benefits Through Qualified Domestic Relations Orders.

▪    The group EX-POSE (EX-Partners Of Servicemembers for Equality!) serves as an information resource for spouses facing separation and divorce from a military service member

▪    WISER has a very useful booklet, Divorce and Retirement: How to Take Control of Retirement Benefits.

▪    WISER has other fact sheets on its web site dedicated to divorce issues and retirement including questions to ask your lawyer, the 12 worst mistakes lawyers make, additional reading and more.

▪    PRC’s book Your Pension Rights at Divorce is in the process of being updated but the updated portions may be read on our web site.

▪    Read the PRC fact sheet, “Your Pension Rights After Divorce.”

While a house may have emotional value, it may not have the same monetary value as a pension that pays lifetime benefits (the former wife of Nevada governor Jim Gibbons may end up regretting the division of the couple’s retirement assets in their recent divorce).

Ultimately, there are numerous ways to ensure an equitable division of the property, but only when the pension is properly valued is the final result truly equitable.  Again, the best way to value marital property, including a pension, is to obtain legal representation (see the first blog entry in this series).

Note that some state, city, and county retirement systems will not pay retirement benefits to a former spouse. If you are or have been married to an employee or retiree of a state or local government you may want to read our fact sheet on State Retirement Systems and Divorce.

Tomorrow’s blog entry will provide additional resources for divorce and retirement issues. Read the rest of the blog entries in this series.

The court order must be submitted to the retirement plan to ensure that the plan pays benefits to a former spouse correctly. Make sure to keep a copy of the order for your records. Some state, city, county, and town retirement plans will not make direct payments to former spouses. Read our fact sheet to learn more about state retirement systems and divorce.

Although the Pension Protection Act of 2006 requires that private pension plans must accept court orders regardless of when they were issued, it is best to submit a court order to a retirement plan as soon as it is issued by the divorce court, even if retirement is many years away. We’ve heard sad stories in which the retirement plan received a court order after the pension had already been distributed.

Also, you don’t want to end up in a situation where one of the parties in the divorce dies before the plan has been notified how it should divide the benefits. Read our summary of Kennedy v. Plan Administrator for DuPont Savings and Investment Plan to see how complicated things can get when divorced couples don’t make it clear what should be done with their retirement plans.

Tomorrow’s blog entry will focus on the importance of a pension or retirement plan as a marital asset. Read the rest of the blog entries in this series.

▪    pension benefits earned during a marriage;

▪    retirement savings accounts that were funded during a marriage; and

▪    the earnings on these accounts that accumulated during the marriage.

Please note that state laws govern the specifics of what is and is not marital property - and how the property is divided. In addition, divorcing couples may negotiate a variety of methods for dividing marital assets.  The important thing is to make sure all marital property is included in the property to be divided. So look for statements from those old 401(k), pension and profit sharing plans you or your spouse may have from a previous employer, or an IRA account that has been long forgotten.

This is the second in a series of blog entries on the subject of divorce and retirement. Monday’s blog entry will focus on the importance of submitting legal paperwork relating to your divorce to the retirement plan right away. Read the rest of the blog entries in this series.

Did you know that, aside from real estate, retirement plans are usually the largest asset in a marriage? Yet, retirement plans are often overlooked during divorce, because a divorce can occur years before retirement. When retirement is so far off in the future, couples may neglect to pay the necessary attention to pensions and retirement savings plans when they decide to split up. 

All too often we hear from individuals who remember retirement plans only after their divorces are finalized. As a result, an ex-spouse can lose out on a significant portion of the marital assets. To prevent this from happening to you, we have outlined a few tips that may help if your divorce involves a retirement plan.

Protect your rights: Get representation

If either spouse involved in the divorce has a retirement plan, hire a lawyer! Divorce often takes an emotional toll on all parties involved, so it may help to have an objective third party handle what can be complex discussions. A qualified lawyer, who knows the ins-and-outs of divorce law, particularly as they relate to retirement plans, will protect your interests and can facilitate a smooth division of these assets.

To find a lawyer, use one of the following resources:

▪    The National Pension Lawyers Network, a no-cost referral service that connects workers and retirees with professionals who can help them understand and enforce their pension rights;

▪    LawHelp.org, a web site that helps low and moderate income people find free legal aid programs in their communities, and answers to questions about their legal rights; or

▪    A local bar association, a professional organization in a city or state that will provide referrals to lawyers.  FindLaw.com has a helpful list of state and local bar associations.

Tomorrow’s blog entry will focus on how to determe whether pensions and retirement plans are marital property. 

▪    The Center for Retirement Research at Boston College has released a new issue brief, Why Did Some Employers Suspend Their 401(k) Match, which takes a look at the various reasons employers reduced or eliminated this important feature of their employees’ retirement security. Note that the issue brief relies on data compiled in the Pension Rights Center’s list of companies that have suspended or made changes to their 401(k) plans.

▪    A new briefing paper from the Institute for Women’s Policy Research examines data showing that the current recession has caused unemployment, economic insecurity and poverty among women to rise to historic levels.

▪    Delphi’s salaried retirees are starting to see their monthly pension checks decrease now that a judge has okayed the reduction pending the outcome of a lawsuit seeking to reverse the company’s decision to turn the salaried retirees’ pension plan to the Pension Benefit Guaranty Corporation.

▪    U.S. News & World Report takes a look at the 7 Reasons Job Hoppers Are Worse Off in Retirement.

▪    Don’t forget to visit the “Pensions in the News” section of our web site to stay informed about the latest news in the world of pensions!

▪    The National Institute on Retirement Security has released a Pension Primer to provide to give readers an overview of pensions. The primer includes fact sheets, frequently asked questions, a glossary, and key statistics.

▪    Read the Pension Rights Center’s statement on the Obama administration’s automatic IRA proposal.

▪    U.S. Secretary of Labor Hilda L. Solis has announced new appointments and leadership to 2010 ERISA Advisory Council. The council provides advice to the Department of Labor on policies and regulations affecting employee benefit plans governed by the Employee Retirement Income Security Act (ERISA).

▪    U.S. News & World Report’s ‘Planning to Retire’ blog takes a look at the ways job hopping makes you worse off in retirement.

▪    Last week the U.S. Senate rejected the creation of a task force to tackle the federal deficit.

▪    The Pension Rights Center has joined Facebook at http://www.facebook.com/PensionRightsCenter. Become a fan today!!

These days, news of an employer terminating its pension plan, while never good for workers and retirees, isn’t all that uncommon. This, however, is a special case because the Augsburg Fortress pension is a “church plan.”

Because they are in a church plan, Augsburg Fortress workers and retirees are not protected by the Pension Benefit Guaranty Corporation (PBGC). The PBGC is the federal agency that insures private pension plans, paying out pensions when companies go belly-up or cannot afford to continue their plans. While not perfect, PBGC insurance helps ensure that people who spent a lifetime working for a company won’t lose their promised retirement benefits. 

The shortfall between the Augsburg Fortress plan’s assets and what it owes current and future retirees is a whopping $15 million, but, because the plan isn’t protected by the PBGC, workers and retirees could lose the pensions that had been promised them.

These workers and retirees aren’t taking this lying down. Instead, they have taken to the popular social-networking site, Facebook, to take action and spread the word about their situation. Their goal is to get the Augsburg Fortress Board of Trustees to reverse its decision and reinstate the pension plan.  Bravo!

Read articles about the Augsburg Fortress pension plan:

▪    Augsburg Fortress Cancels Retirement Plan

▪    Minneapolis Publisher to End Retirement Benefits

▪    Pension Problem at ELCA’s Publishing Arm Exposes Loophole

▪    Believe It - You Are On Your Own for Retirement

Extending pension insurance protections to workers and retirees in hospitals, schools and other entities whose pension plans are affiliated with a religious organization is one of the action items on our Consumer Agenda to Restore Retirement Security. Publishing houses for religious organizations should also have this important protection.