Peter1469
10-31-2015, 05:26 AM
The budget and pension plans: (http://www.bloomberg.com/news/articles/2015-10-29/will-the-budget-deal-hurt-your-pension-plan--igccrjxr) the new budget will kill off the remaining pension plans.
Defined pension plans are ending because of globalism. Globalism killed cartels in the US, such as unions. Anyway, the new budget will finish them off. The government is going to force pension plans to pay more into the Pension Benefit Guaranty Corp. - that is the government agency that managed pensions when pension plans go bust. You get like 30 cents on the dollar to what you thought you would get.
The federal budget deal (http://www.bloomberg.com/politics/articles/2015-10-28/house-dodges-u-s-debt-default-by-passing-bipartisan-budget-plan) could speed the long, lingering death of old-fashioned defined-benefit pension plans (http://www.investopedia.com/terms/d/definedbenefitpensionplan.asp), in which employers reward years of service by providing a guaranteed stream of income in retirement.
The deal could affect any pre-retiree in a former employer's pension plan1 (http://www.bloomberg.com/#footnote-1446127330565) by increasing the per-head premiums that plan sponsors must pay to the Pension Benefit Guaranty Corp. If it goes through as written, every person in a plan will get more expensive at the stroke of a pen.
Employers are already deeply concerned about the extent and uncertainty of future pension liabilities (http://www.bloombergview.com/articles/2013-06-24/traditional-pension-plans-can-still-work-really-) and are trying to shed them. The proposed increase in the budget legislation would push even more pension plans to manage costs any way they can, including reducing participant head count, said Alan Glickstein, a senior retirement consultant with Towers Watson.
The budget deal calls for a 22 percent hike, spread out over three years, in flat-rate, single-employer premiums paid to the PBGC, which acts as a backstop to a company's pension liability should the company become insolvent. Those premiums will already have risen from $31 in 2007 to $64 in 2016; by 2019 they will reach $782 (http://www.bloomberg.com/#footnote-1446068924491).
Defined pension plans are ending because of globalism. Globalism killed cartels in the US, such as unions. Anyway, the new budget will finish them off. The government is going to force pension plans to pay more into the Pension Benefit Guaranty Corp. - that is the government agency that managed pensions when pension plans go bust. You get like 30 cents on the dollar to what you thought you would get.
The federal budget deal (http://www.bloomberg.com/politics/articles/2015-10-28/house-dodges-u-s-debt-default-by-passing-bipartisan-budget-plan) could speed the long, lingering death of old-fashioned defined-benefit pension plans (http://www.investopedia.com/terms/d/definedbenefitpensionplan.asp), in which employers reward years of service by providing a guaranteed stream of income in retirement.
The deal could affect any pre-retiree in a former employer's pension plan1 (http://www.bloomberg.com/#footnote-1446127330565) by increasing the per-head premiums that plan sponsors must pay to the Pension Benefit Guaranty Corp. If it goes through as written, every person in a plan will get more expensive at the stroke of a pen.
Employers are already deeply concerned about the extent and uncertainty of future pension liabilities (http://www.bloombergview.com/articles/2013-06-24/traditional-pension-plans-can-still-work-really-) and are trying to shed them. The proposed increase in the budget legislation would push even more pension plans to manage costs any way they can, including reducing participant head count, said Alan Glickstein, a senior retirement consultant with Towers Watson.
The budget deal calls for a 22 percent hike, spread out over three years, in flat-rate, single-employer premiums paid to the PBGC, which acts as a backstop to a company's pension liability should the company become insolvent. Those premiums will already have risen from $31 in 2007 to $64 in 2016; by 2019 they will reach $782 (http://www.bloomberg.com/#footnote-1446068924491).