Facing a $3.6 billion deficit for the state's 2011-13 budget, Wisconsin Gov. Scott Walker says he knew he had to do something and didn't really like the choices. The budget shortfall was the largest the state had ever seen, and Walker says he didn't want to raise taxes, fire anybody or cut services.
Here are some of the more noteworthy 2011 reforms from across the country, which were compiled from various sources.Read More
Considering that state and local pension systems are staring at $4 trillion in unfunded liabilities, it's no wonder that pension reform is on the minds of legislators across the country. Workforce Management takes a state-by-state look at the mounting problems and potential solutions being considered. Read More
Today's workers aren't guaranteed the comfortable post-workforce lives that their predecessors had, so companies are looking for ways to help by unscrambling the current retirement puzzle.
With the continued downward spiral of the number of defined benefit plans, employers are becoming more concerned about workers having enough money to sustain their retirement. They are looking at guaranteed defined benefit-like investment options, mostly referred to as retirement income solutions, to help employees have more secured savings to tap throughout retirement.
According to the Pension Benefit Guaranty Corp., American Airlines received specific funding relief in the Pension Protection Act of 2006 and an Iraq War spending bill in 2007 that allowed airlines to spread their unfunded liability in 2008 over 10 years instead of seven. Read More
Observers find proposals to be well intended, but add that workers have a lot to learn on annuities.
About 40 percent of New York workers had access to an employer-sponsored retirement plan in 2009, compared with the national average of 53 percent, according to the report by the New School's Bernard Schwartz Center for Economic Policy Analysis. Read More
According to a December 2011 study by Mercer and CFO Research Services, 59 percent of 192 senior-level financial executives surveyed say their defined benefit pension plan poses at least a moderate risk to their companies' short-term financial performance. High plan liabilities coupled with a weak market are causing plan sponsors to explore new strategies for protecting assets.