Tuesday, January 25, 2005
Tweet[IWS] EPF: Pension Funding Reform: Bush Administration Proposal Analysis[20 January 2005]
IWS Documented News Service
_______________________________
Institute for Workplace Studies Professor Samuel B. Bacharach
School of Industrial & Labor Relations Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor Stuart Basefsky
New York, NY 10016 Director, IWS News Bureau
________________________________________________________________________
Employment Policy Foundation (EPF)
Policy Backgrounder
Contemporary Issues in Employment and Workplace Policy January 20, 2005
Pension Funding Reform: An Analysis of the Bush Administration's Proposal [20 January 2005]
http://www.epf.org/pubs/newsletters/2005/pb20050120.pdf
[full-text, 4 pages]
[excerpt]
Conclusion
The release of this proposal underscores the high level
of interest that the Bush Administration has in preserving
the DB pension system and improve its future solvency.
But many of the implications of their proposal for plan
sponsors will not be evident until the actual details are
worked out in Congress and in the regulatory process. In
the end, increased premiums, contribution requirements
and the rising administrative burden on "healthy"
companies that might arise from a pension reform proposal
could seriously compromise the ability of firms to afford
these plans. The Administration and Congress must
recognize that the current DB pension system is voluntary.
These additional costs could ultimately force many DB
plan sponsors to freeze or terminate their DB plans
altogether. Ironically, as more firms exit the system amidst
rising costs, this would lower the available pool for PBGC
revenues. Obviously, these outcomes would defeat the
goal of the Administration's proposal, which was to help
preserve the DB pension system.
_____________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky *
Director, IWS News Bureau *
Institute for Workplace Studies *
Cornell/ILR School *
16 E. 34th Street, 4th Floor *
New York, NY 10016 *
*
Telephone: (607) 255-2703 *
Fax: (607) 255-9641 *
E-mail: smb6@cornell.edu *
****************************************
_______________________________
Institute for Workplace Studies
School of Industrial & Labor Relations
Cornell University
16 East 34th Street, 4th floor
New York, NY 10016
________________________________________________________________________
Employment Policy Foundation (EPF)
Policy Backgrounder
Contemporary Issues in Employment and Workplace Policy January 20, 2005
Pension Funding Reform: An Analysis of the Bush Administration's Proposal [20 January 2005]
http://www.epf.org/pubs/newsletters/2005/pb20050120.pdf
[full-text, 4 pages]
[excerpt]
Conclusion
The release of this proposal underscores the high level
of interest that the Bush Administration has in preserving
the DB pension system and improve its future solvency.
But many of the implications of their proposal for plan
sponsors will not be evident until the actual details are
worked out in Congress and in the regulatory process. In
the end, increased premiums, contribution requirements
and the rising administrative burden on "healthy"
companies that might arise from a pension reform proposal
could seriously compromise the ability of firms to afford
these plans. The Administration and Congress must
recognize that the current DB pension system is voluntary.
These additional costs could ultimately force many DB
plan sponsors to freeze or terminate their DB plans
altogether. Ironically, as more firms exit the system amidst
rising costs, this would lower the available pool for PBGC
revenues. Obviously, these outcomes would defeat the
goal of the Administration's proposal, which was to help
preserve the DB pension system.
_____________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
# posted by SBasefsky : 7:04 PM
