Read a study of 401(k) plan investing and race by Alicia Munnel and Christopher Sullivan at Boston College's Center for Retirement Research, here.
From the introduction:
"Many data sources show a disparity among racial and ethnic groups regarding participation in and contributions to 401(k) plans. White workers participate at a higher rate and contribute a higher percentage than African American and Hispanic workers. However, few studies have explored whether these differences persist once other factors expected to impact these decisions are taken into consideration. One recent study by Ariel/Hewitt using client data found lower participation and contributions rates in 401(k)plans for African Americans and Hispanics than for Whites, even after controlling for age, tenure, and earnings. The question is whether racial and ethnic differentials remain after controlling for a broader array of factors included in a nationally representative sample of households, the Federal Reserve’s Survey of Consumer Finances (SCF)."
11/27/09
Fee Scandal at Calpers: Spot the ERISA Litigation Issues
More on the Calpers (California Pension Plan)scandal in the Wall Street Journal. Craig Kramin reported
"Calpers said it paid two hedge-fund advisers during a two-year period when the firms weren't under contract, the latest stumble by the nation's largest pension fund. The two firms, a unit of UBS AG and Pacific Alternative Asset Management Co., have worked for the California Public Employees' Retirement System since 2003.
But their contracts had lapsed even as they continued to advise Calpers on hedge-fund investments over the past two years.
They received a combined $36 million."
"Calpers said it paid two hedge-fund advisers during a two-year period when the firms weren't under contract, the latest stumble by the nation's largest pension fund. The two firms, a unit of UBS AG and Pacific Alternative Asset Management Co., have worked for the California Public Employees' Retirement System since 2003.
But their contracts had lapsed even as they continued to advise Calpers on hedge-fund investments over the past two years.
They received a combined $36 million."
11/13/09
401(k) Resource
401k.org has resources for learning about 401(k) plans. Among them are a series of articles, incuding this one on Plan Loans.
Excerpt:
"One of the benefits offered by most 401(k) plans is the ability to borrow against your retirement sav-
ings in times of need. Currently, about 25 percent of employees eligible for a plan loan have taken
advantage of the option, with an average outstanding loan balance of about $7,400. Loans provide two
special advantages:
1. If your plan has a loan program, you have the security of knowing that your money is
available "just in case." This means you can comfortably make the maximum contribution
commitment to your plan without worrying if you might need those funds later.
2. Loans help prevent you from depleting your retirement savings when financial crisis occurs.
If your plan offers loans, you will be required to take a loan first before you can take a
distribution because once money is taken as a distribution, it cannot be replaced.
Let's assume you have an unexpected crisis and you need your money. What should you know?
Loan Basics
• Plans typically allow you to borrow up to 50 percent of your vested plan assets, up to $50,000,
less the amount of any outstanding plan loans.
• Plan loans usually have a minimum amount requirement, which is typically $1,000.
• Loans may be taken from all vested funds, which includes your rollovers from other qualiplans.
• In nearly all cases, you must repay your loan in equal payments over a five-year period.
• In rare cases, your payment period may be longer when the loan is for your primary
residence."
Excerpt:
"One of the benefits offered by most 401(k) plans is the ability to borrow against your retirement sav-
ings in times of need. Currently, about 25 percent of employees eligible for a plan loan have taken
advantage of the option, with an average outstanding loan balance of about $7,400. Loans provide two
special advantages:
1. If your plan has a loan program, you have the security of knowing that your money is
available "just in case." This means you can comfortably make the maximum contribution
commitment to your plan without worrying if you might need those funds later.
2. Loans help prevent you from depleting your retirement savings when financial crisis occurs.
If your plan offers loans, you will be required to take a loan first before you can take a
distribution because once money is taken as a distribution, it cannot be replaced.
Let's assume you have an unexpected crisis and you need your money. What should you know?
Loan Basics
• Plans typically allow you to borrow up to 50 percent of your vested plan assets, up to $50,000,
less the amount of any outstanding plan loans.
• Plan loans usually have a minimum amount requirement, which is typically $1,000.
• Loans may be taken from all vested funds, which includes your rollovers from other qualiplans.
• In nearly all cases, you must repay your loan in equal payments over a five-year period.
• In rare cases, your payment period may be longer when the loan is for your primary
residence."
The New England Pension Assistance Project's Work on Protecting Women's Pensions
The Center for Tax Law and Employee Benefits sponsors an externship with theNew England Pension Assistance Project.
From their website:"Women are much less likely than men to receive private pensions. In 1994, according to the U.S. Department of Labor, 53% of men age 65 and older received private pension benefits, but only 33% of women 65 and older received such benefits, including those collecting survivor’s benefits.
The Massachusetts Pensions not Posies Coalition was formed in May 1994.It is made up of individuals and 25 non-profit agencies. Its goals are to:
1. Provide education and information to women which will enable them to better understand how pensions work, to protect their individual pension rights, and to plan for retirement.
2. Propose legislative changes which will protect individual retirement income and increase benefit levels and participation rates for women.
3. Increase public awareness of current pension policies and trends that jeopardize women’s retirement security and encourage development of private pension plans.
The coalition grew out of a national 'Pensions not Posies' campaign begun in 1994 by three national organizations: the Pension Rights Center, the Older Women’s League, and the National Senior Citizens Law Center."
From their website:"Women are much less likely than men to receive private pensions. In 1994, according to the U.S. Department of Labor, 53% of men age 65 and older received private pension benefits, but only 33% of women 65 and older received such benefits, including those collecting survivor’s benefits.
The Massachusetts Pensions not Posies Coalition was formed in May 1994.It is made up of individuals and 25 non-profit agencies. Its goals are to:
1. Provide education and information to women which will enable them to better understand how pensions work, to protect their individual pension rights, and to plan for retirement.
2. Propose legislative changes which will protect individual retirement income and increase benefit levels and participation rates for women.
3. Increase public awareness of current pension policies and trends that jeopardize women’s retirement security and encourage development of private pension plans.
The coalition grew out of a national 'Pensions not Posies' campaign begun in 1994 by three national organizations: the Pension Rights Center, the Older Women’s League, and the National Senior Citizens Law Center."
First Healthcare, then Retirement
Check out David Wray's blog post about United States policy decisions regarding benefits such as health care and retirement income. Mr. Wray is the president of The Profit Sharing/401(k) Council of America
From his blog posting:
"The US made a decision in the 1930s to limit government delivered “benefits" to Social Security-provided retirement income. Paying for other benefits was a personal responsibility, though in some cases employers were encouraged to help. Since then government-provided benefits in the US have expanded but mostly as part of the safety net.
European countries took a different direction. In Europe certain benefits were defined as a right, and the government provided them to everyone. Some here have been disappointed at our more limited approach and attempts to implement the European approach have been ongoing. For example, they were successful in getting Medicare adopted in the 1960’s. Saturday's vote in US House of Representatives on health care shows the current strength of those advocating this philosophy."
From his blog posting:
"The US made a decision in the 1930s to limit government delivered “benefits" to Social Security-provided retirement income. Paying for other benefits was a personal responsibility, though in some cases employers were encouraged to help. Since then government-provided benefits in the US have expanded but mostly as part of the safety net.
European countries took a different direction. In Europe certain benefits were defined as a right, and the government provided them to everyone. Some here have been disappointed at our more limited approach and attempts to implement the European approach have been ongoing. For example, they were successful in getting Medicare adopted in the 1960’s. Saturday's vote in US House of Representatives on health care shows the current strength of those advocating this philosophy."
11/4/09
Free ERISA
Marshall LL.M. in Employee Benefits alumna and founder and principal of Benefits Compliance Group, Tonya Wilkes Moore, recently taught an EB 361 class and suggested some great resources for benefits practice, including the website Free ERISA
"FreeERISA.com provides free access to Department of Labor Form 5500 disclosure filings on more than 1 million retirement and health benefits plans. Here's what you'll find: Complete plan details; Contact info.rmation for plan sponsors, carriers, and brokers; Commentary and advice from industry experts"
"FreeERISA.com provides free access to Department of Labor Form 5500 disclosure filings on more than 1 million retirement and health benefits plans. Here's what you'll find: Complete plan details; Contact info.rmation for plan sponsors, carriers, and brokers; Commentary and advice from industry experts"
Subscribe to:
Posts (Atom)
