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PBGC Blog: Retirement Matters

Weekly Pension News Round-Up

  |   August 31, 2012

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

Smart Business Network writes "How to overcome benefit plan challenges and structure your plans properly."

Pensions & Investments reports "Pension investment strategy in light of new law."  

CNNMoney publishes "Your pension: Lump sum vs. monthly payments."   

Dow Jones Newswires runs "Hawker Says It Is Closer to Superior Deal, Settles With PBGC."

There are a number of websites and online tools to help with retirement planning.  In particular, retirement calculators are one of the most useful tools in helping future retirees figure out how much to save for retirement. Although this tool, in its many variations, can be extremely helpful, very few actually provide detailed instructions on how best to use them. Fortunately, CBSNEWS.COM features Steve Vernon's tips on using retirement calculators:

  • Tip #1: What rate of return do you expect on your retirement savings?
  • Tip #2: When do you expect to retire?
  • Tip #3: How long will you live?
  • Tip #4: How much retirement income do you need?
  • Tip #5: Should you include Social Security benefits?

Read the CBSNEWS.COM full article:http://www.cbsnews.com/8301-505146_162-57494187/5-tips-for-using-retirement-calculators/.

Weekly Pension News Round-Up

  |   August 24, 2012

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

KWCH 12 Eyewitness News ran "Hawker Beechcraft, union & lenders reach pension deal."

Business Insurance publishes "PBGC takes over SP Newsprint pensions."

Reuters poses the question "How is your pension doing?"

Weekly Pension News Round-Up

  |   August 17, 2012

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

U.S. News & World Report blogs about "How Safe Is Your American Dream?"

Pensions & Investments features an article on "Identifying the best risk mitigation strategy for a corporate DB plan."

The Washington Post ran the Associated Press article "Federal agency admits mistake with United Airlines pension; some retirees getting raises."

PLANSPONSOR.COM quotes PBGC Director Josh Gotbaum in "PBGC to Begin Back Payments for United Airlines Retirees."

The Philadelphia Inquirer publishes "Without a Pension's Security."

Weekly Pension News Round-Up

  |   August 10, 2012

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

The New York Post writes about "Vanishing Pensions."  

DB Plans See Large Decline in Funded Status, PLANSPONSOR.com  reports.  

"More and more retirees could soon be facing the choice of accepting a pension buyout or collecting a monthly check...," the Wall Street Journal publishes.

Reuters features an article on "How to find a lost pension."  

 

One big job for PBGC is to make sure that companies with pension plans finance those plans and PBGC's safety net. The best outcome is always for a company to keep its own pension plans. But when it can't, we also fight in court to recover the money that the company owes for its pensions.

A recent case involved the Daytona Beach, Fla. News-Journal, a newspaper in receivership  meaning that a court ordered the sale of the paper. The business owed PBGC $15 million for pension benefits that the newspaper owed its employees but that PBGC is now paying.

But in court, another creditor made a claim for an amount greater than the value of the entire business, based on its former ownership of the company. A Florida court gave that claim priority  leaving PBGC and others out in the cold.

A PBGC staff attorney researched Florida law and found that the court had made an error. With that information PBGC successfully appealed the ruling. Florida law says that claims arising from debt get priority over claims arising from ownership. The appeal kept PBGC's claim alive and may yet enable PBGC to collect significant funds from the newspaper.

"The decision supports the general rule that debt comes before equity," said Chief Counsel Izzy Goldowitz, "so it's an important precedent."

Read the appeals court's full decision. [PDF]