October 2017

26Oct

US. GOP shouldn’t raid 401(k) plans to pay for tax cuts

Republicans in Congress are planning to include a proposal in their tax reform bill that would push millions of Americans to save less for retirement. Despite President Trump tweeting his strong and unambiguous opposition to the plan on Monday, House Ways & Means Committee Chairman Kevin Brady made clear on Wednesday that the proposal that makes changes to 401(k) retirement savings plans is still likely to be included in the House Republicans' tax legislation scheduled for committee consideration next...

October 26, 2017
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25Oct

US. Nearly 1 in 5 Pension Plans Are Overfunded

Nineteen percent of defined benefit plan sponsors in a survey released Tuesday by investment consulting firm NEPC reported funded status of more than 101%, up from 9% a year ago. NEPC noted that this was the highest funded status since it inaugurated the survey in 2011. Of the overfunded plans, 65% invest in alternatives, and 55% use liability-driven investment strategies, with a majority of users executing with derivatives. The rising of variable rate premiums, implemented by the Pension Benefit Guaranty Corp.,...

October 25, 2017
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23Oct

Trump says ‘there will be NO change to your 401(k)’ after reports Republicans want new caps on retirement savings

President Donald Trump used Twitter to dispel reports that the forthcoming Republican tax-reform plan would include big changes to how people could save for retirement. Reports on Friday said that GOP leaders were considering a cap on the amount of money that could be placed in a traditional, tax-deferred 401(k) to help pay for part of their tax plan. On Monday, Trump said this change would not take place because it is a popular middle-class tax break. Read More @Business Insider

October 23, 2017
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20Oct

Homeownership, Social Insurance, and Old-Age Security in the United States and Europe

By Stipica Mudrazija & Barbara A. Butrica (The Urban Institute) Relatively few Americans have accumulated substantial savings outside of their employer-sponsored retirement plans, yet most own their homes. The traditional view of the retirement income system as a three-legged stool supported by Social Security, private pensions, and savings may be better viewed as being supported by Social Security, pensions, and homeownership. Country-specific economic, social, and political developments throughout modern history mean that homeownership rates and the relative importance of homeownership for...

October 20, 2017
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20Oct

US. Government report sounds alarm on retirement crisis

A new government report is sounding the alarm to Congress about a looming retirement crisis if nothing is done to fix existing roadblocks to financial security for many Americans. The Government Accounting Office paper calls on lawmakers to create an independent commission to "comprehensively examine" the U.S. retirement system — including Social Security, workplace retirement plans and individual savings — and make recommendations for improvements. The goals, the report said, should be to: Promote universal access to retirement savings Ensure greater...

October 20, 2017
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20Oct

US. Your pension fund could be invested in tech

The economics of the tech industry is a chain with a bunch of confusing links. Startups get their money from venture capital firms, and we've talked about how that works and why it heavily influences who becomes key players in tech and what products end up in your hands. But how do venture capital firms get their money? Limited partners, or private corporations; state, county and city entities; and universities. Now, continue to follow me down the chain. Where...

October 20, 2017
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19Oct

US. New Accounting Rules Could Shift Pension Investment Mix

New accounting rules could prompt companies to accelerate the shift toward investing pension plans in safer, fixed-income assets, according to a recent report by Goldman Sachs Asset Management. The new guidelines focus on how and where on financial statements companies record pension plan expenses. Companies will have to separate employee service costs from other aspects of pension and postretirement benefit costs, such as expected return on plan assets and interest costs on the obligation. Businesses will be allowed to capitalize...

October 19, 2017
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13Oct

Trump health-care order could violate retirement plan law

President Donald Trump's plan to make it easier for small businesses to band together and buy stripped-down health insurance plans could violate a federal law governing employee benefit plans and will almost certainly be challenged in court, legal experts said. Trump signed an executive order on Thursday aimed at letting small businesses join nationwide associations for the purpose of buying large-group health plans that are not subject to coverage requirements of the Affordable Care Act, commonly known as Obamacare. Industry experts said...

October 13, 2017
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10Oct

Here’s How Much the Average 40-Something American Has Saved for Retirement

By the time you reach your 40s, there's a good chance you'll have had about 20 years of working experience under your belt. And that means you should, ideally, be in a decent place as far as your retirement savings go. Unfortunately, a large number of American 40-somethings are already behind on building their nest eggs. They need to start catching up immediately. Among U.S. households headed by someone aged 44 to 49, the average retirement savings balance is $81,347,...

October 10, 2017
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09Oct

US. Ballot measure would strip pensions from corrupt lawmakers

For years, New York lawmakers convicted of abusing their power and sent off to prison had at least one thing to look forward to: a generous state pension. That practice could come to an end in November when voters will be asked whether to change the state constitution to authorize judges to strip pensions from corrupt politicians. Top lawmakers and Democratic Gov. Andrew Cuomo have argued the change will act as a powerful deterrent in a state where 30 state...

October 9, 2017
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