'The reality is that 401(k)s were never intended to take the place of pensions,' according to New York state comptroller Thomas DiNapoli in a speech at the New School's Schwartz Center for Economic Policy Analysis in New York City.
Changes in the maximum benefit guarantee, which will increase 3.4 percent next year, are linked to wage inflation.
In 2004, as the corporate drive to freeze defined benefit plans was picking up momentum, only 45, or 7.1 percent of 633 Fortune 1000 companies with defined benefit plans, had frozen at least one plan, reports consultancy Towers Watson.Read More
As was the case in the prior fiscal year, the Pension Benefit Guaranty Fund did not incur any multibillion-dollar losses in fiscal 2011.Read More
The consultancy attributed the funding improvement to an 11 percent gain in equity values in October, partially offset by a decrease in corporate bond yields.
Federal agency says of the more than $2.7 billion that was paid out through June 30, 45.6 percent went to governmental entities while 36.6 percent went to commercial entities, such as self-funded private employers.Read More
The proposal would create a pension plan with elements of defined benefit and defined contribution plans and would also raise the retirement age for new state and local government employees to 67.Read More
The 2012 limits, which reflect a methodology set by federal law, are based on increases in the cost of living.Read More
Aside from health care benefits, the only corporate benefits budget item that grew between 2009 and 2011 was corporate 401(k) plans, which increased two percentage points to 15 percent in the latest survey.Read More
The suspensions occurred from January 2008 through January 2010, though most occurred during the first half of 2009, which was the peak of the Great Recession, according to research by Towers Watson.Read More