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Public employees paying more into U.S. pensions, uptrend seen extending
Public pension employee contributions are on the rise nationwide in an effort to stem increasing employer pension costs. Investment returns are hard to predict, and regulatory constraints make it difficult to reduce benefits, so one of the few remaining ways to combat increasing employer costs is to increase employee contributions. Read more: http://www.reuters.com/article/us-usa-pensions-idUSKCN0ZF2FF
States aim to fill pension gaps with “auto IRAs”
Several states are considering creating automatic IRAs to help bridge the gap for employees without an employer-sponsored retirement plan. Although many of these people could open IRAs on their own, the statistics show that very few do. Participation would likely be much higher in systems that require opting out, rather than opting in. Read more: http://www.cbsnews.com/news/states-aim-to-fill-pension-gaps-with-auto-iras/
Calpers Names Marcie Frost CEO
Calpers Names Marcie Frost CEO. “The nation’s largest pension system, CalPERS manages a pension fund of $301 billion. The Sacramento-based system has 2,870 employees and a budget of $1.7 billion to serve 1.7 million members in its retirement system.” Read more: http://www.bizjournals.com/sacramento/news/2016/07/15/calpers-hires-washington-state-pension-executive.html
America isn’t saving enough for retirement. Can that be fixed before it’s too late?
Several factors are contributing to retirement uncertainty for many Americans, including the political climate surrounding Social Security’s precarious financial position, the exchange of defined benefit plans for opt-in 401(k) style plans, and longer lifespans. Read more: http://www.latimes.com/business/la-fi-retirement-savings-plans-20160627-snap-story.html
Social Security and Medicare Trustees See Little Change in Outlook
The financial outlook for Social Security and Medicare has changed little since last year, according to reports from the programs’ trustees. Social Security can pay full benefits until 2034 and Medicare’s Hospital Insurance (HI) trust fund through 2028. Read more: http://www.huffingtonpost.com/paul-n-van-de-water/social-security-and-medic_b_10616798.html