Jump to Navigation
Jump to Content

Future retirement security

What happens to my pension if my employer declares bankruptcy?

Blog entry

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...

Three companies do "the right thing"

Blog entry

It isn't every day you that hear a company say that providing a 401(k) match is the "right thing to do" for its employees. Nope, you don't hear it that often - especially during an economic downturn that many have compared to the Great Depression. So, when I heard that Dollar Thrifty Automotive Group reinstated matching contributions to its employees' 401(k) accounts, I took notice. More...

Getting back on track

Blog entry

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...

The match game

Blog entry

With the stock market tanking, people saving for retirement through their company's 401(k) plan have yet another reason to worry: more and more employers are suspending their 401(k) matching contributions. This means that some workers will no longer receive a dollar-for-dollar match from their employer for the money that they themselves contribute to their 401(k). More...

A 401(k) lesson learned

Blog entry

Some employers may have learned a lesson from the collapse of Enron and its devastating impact on the 401(k) accounts of its workers and retirees.  For years, Enron had matched employee contributions to their 401(k) plans with employer stock, instead of matching their contributions with money that the employees could invest themselves.  Even worse, Enron employees were prohibited from selling the company stock in their 401(k)s until they turned 50.  When the company went bankrupt, the stock lost nearly all of its value.  As a result, Enron employees and retirees lost a great deal of their retirement savings. More...

401(k) regrets

Blog entry

Some teachers in West Virginia have learned the hard way that traditional pensions end up paying better benefits than 401(k)-type plans. More...

Record profit yields underfunded pension

Blog entry

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...

New report makes the case against pension freezes

Blog entry

Look Before You Leap: The Unintended Consequences of Pension Freezes, a new issue brief from the National Institute on Retirement Security (NIRS), makes the case for why pension freezes aren't always a good idea for state and local governments. More...

More broken promises

Blog entry

Last week General Motors announced plans to temporarily suspend the practice of making matching contributions to their employees' 401(k) accounts.  This cut, coupled with the impact of the reeling stock market, only adds to the sense of retirement insecurity felt by workers who have seen the nation's pension and 401(k) account balances plummet by as much as $2 trillion in the past year and a half.

Now, as the Washington Post points out, workers are increasingly finding that they will have to fend for themselves when it comes to their retirement security. More...

Current economic crisis helps make the case for guaranteed pensions

Blog entry

During the last few weeks, the Wall Street roller coaster has wreaked havoc on the economy and the retirement assets of the millions of American workers with 401(k) plans.

For workers who, like me, are relatively young and decades away from retiring, the current economic crisis doesn't make me terribly anxious about my 401(k). While the economic downturn concerns me, I'm not too worried because I have ample time to prepare for retirement. But I do admit that even I am too afraid to look at the balance in my 401(k) account!

But what about people who are closer to retirement age? 

More...
print Syndicate content