Pension
Detroit Bankruptcy Puts Pensions on the Chopping Block
Detroit pensions may now be on the chopping block. Money that was supposed to materialize disappeared into thin air–in the lead up to Detroit’s filing for bankruptcy last week, a big hole was revealed in the city’s pension fund. Kevyn Orr, the city’s emergency manager, found $3.5 billion in liabilities in the pension budget. Prior […]
US Pension Insurer May Need a Bailout
A weak economy and the failed pension plans of several bankrupt companies have increased the financial burden of the government agency that insures pensions for one in seven Americans. The Pension Benefit Guaranty Corporation (PBGC) insures private sector pension plans and takes over retirement benefit payouts when traditional pensions fail. Unfortunately, the little-known federal agency […]
Pentagon Seeks Overhaul in Military Benefits
An influential Pentagon panel is eyeing the most radical overhaul of military retirement benefits in 50 years. In its plan the Defense Business Board proposes doing away with the traditional pension program for any members serving 20 years, and replacing it with a 401(k)-style account with government contributions. The DBB says the current pension system is unaffordable […]
Top of the Hour: Pentagon Works to Overhaul Retirement Plan, Morning Headlines
The Pentagon is working on a radical overhaul of the military retirement system that would reportedly save $250 billion over the next two decades. Right now anyone who serves 20 years in the military is eligible for retirement at half their salary. CBS News reports that the Pentagon is working on a 401(k) style plan where soldiers […]