Defined Benefits

The accounts, which Obama announced in his State of the Union Address, will be available to workers who dont have access to a 401(k) plan,

President Barack Obama unwrapped a retirement option for workers whose companies dont have a 401(k) plan during his State of the Union Address.

The unions, which include the biggest organizations representing state workers, called legislation signed into law last month by Democratic Governor Pat Quinn to reduce the shortfall theft, according to a statement.

A rising discount rate, which reduces the current value of a future obligation, and the companys $5 billion contribution to its funded plans last year reduced its pension shortfall by more than half from $18.7 billion at the end of 2012.

The American Academy of Actuaries group called on the president, as well as Congress, to vow to ensure the long-term viability of Social Security and Medicare, something that has long been talked about with little to show for all the rhetoric.

In December, the cost of purchasing annuities from an insurer increased from 108.4 percent to 108.5 percent of the balance sheet liability. The cost of maintaining the pension rose from 108.2 percent to 108.6 percent.