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PBGC Blog: Retirement Matters

Here's what made headlines this week in pension news:

An Openmarket.org article quotes PBGC Director Josh Gotbaum.

Sycamore, Talbots Say Pension Board Won't Oppose Buyout, Bloomberg publishes.

AccountingWeb gives insight on the question "Are Defined-Benefit Retirement Plans Better for Small Businesses?"

Pensions Need a Makeover

  |   March 22, 2012

Defined benefit pensions provide lifetime retirement security, but need to be updated for today’s workforce. PBGC Director Josh Gotbaum talked about his ideas at a recent forum sponsored by Institutional Investor magazine. Here’s a March 20 report from the magazine’s Investor Intelligence Network website: More...

PBGC Director Josh Gotbaum addresses National Institute on Retirement Security.Great news: Americans are living longer. Unfortunately pensions haven’t kept up, and people are rightly worried about retirement. PBGC Director Josh Gotbaum today told a National Institute on Retirement Security conference in Washington, D.C., that new types of defined benefit pensions can help solve the problem of retirement insecurity. Plan designs that marry the best features of DBs and 401(k)s offer lifelong income without forcing retirees to be investment experts. Flexibility is key, Gotbaum said. “One size doesn’t fit all. We in government can do everything in our power to facilitate new plans and eliminate regulatory requirements that burden employers without helping workers and retirees.”

On February 1, 2012, American Airlines announced it would seek to terminate all four of its pension plans.  But the law is clear:  If the company wants to end the plans, it must prove its case. 

Here’s a fact sheet that clears up some big misconceptions: http://www.pbgc.gov/wr/other/pg/american-airlines-pensions--get-the-facts.html

Here’s a Chicago Tribune story based on an interview with PBGC Director Josh Gotbaum:  Pension insurer doubts need of American Airlines parent to terminate defined benefit plans