Defined Benefits

Pensions, in general, reduce poverty, and importantly, the anti-poverty impact of pensions is greatest for Black and Latino retirees, as well as for retirees without a college degree, says the National Institute on Retirement Security.

Private pension funds are not as fragile as state and municipal pensions because they have tighter regulatory rules that govern their accounting and contribution rate requirements, according to Equable Institute.

Despite nagging inflation, 401(k) plans saw record-highs in participation, deferral rates and the use of professionally managed allocations in 2022, according to Vanguard.

As the conversation around student debt continues, employers are an essential part of the response.

There is a renewed focus on nonqualified retirement plans, which are not subject to ERISA rules and can include deferred-compensation plans, executive bonus plans and split-dollar life insurance plans, says a WTW report.

Too often, employers fail to think through the workforce implications of their plan designs and focus on cost, but neglect to what extent delayed retirements can greatly impact build-from-within management strategies.

From savings and early withdrawal habits to financial strategies and backup plans, each generation of workers faces unique challenges.

The ERISA Industry Committee (ERIC), a national non-profit organization that represents the largest employers in the U.S., is calling on Congress to re-examine the premiums paid by companies that sponsor defined benefits (DB) plans.