Although there are as many nuances as there are different schemes, the core problem with defined-benefit pensions
is simple: they have promised far more than they can ever hope to pay out, and have too few new and younger members to possibly support the number of retirees who will depend on them.
Tom says those contemplating transferring a defined-benefit pension
should consider the following questions: | Does the defined-benefit scheme meet my objectives?
The availability of defined-benefit pensions
has declined in recent years.
(PBGC), a federal corporation created by the Employee Retirement Income Security Act (ERISA) of 1974, protects the pensions of 44.1 million American workers and retirees in 30,330 private single-employer and multi-employer defined-benefit pension
Designed primarily to close the $450 billion in funding shortfalls of the nation's defined-benefit pension
system, the bill grants a seven-year window for most plans to become fully-funded.
In its first meeting on May 4, it discussed the risks arising from defined-benefit pension
schemes and explored topics for further study.
arm of Marsh Inc., is replacing its defined-benefit pension
plan based on final salary with a plan whose benefits will be calculated on a "career revalued" basis.
Hawaii's Aloha Airlines has been granted court approval to terminate its employees' defined-benefit pension
Proponents of 401 (k)-style retirement plans often say these plans are better suited to today's mobile employees, who might not stick around long enough to vest in a traditional defined-benefit pension
Earlier versions of the survey have collected data separately on traditional defined-benefit pension
plans and account-based plans, such as 401 (k) accounts.