The Quiet Screwing of America?
Suzanne Woolley of Bloomberg reports, You're About to Get Too Expensive for Your Pension Plan : The federal budget deal could speed the long, lingering death of old-fashioned defined-benefit pension plans , in which employers reward years of service by providing a guaranteed stream of income in retirement. The deal could affect any pre-retiree in a former employer's pension plan by increasing the per-head premiums that plan sponsors must pay to the Pension Benefit Guaranty Corp. If it goes through as written, every person in a plan will get more expensive at the stroke of a pen. Employers are already deeply concerned about the extent and uncertainty of future pension liabilities and are trying to shed them. The proposed increase in the budget legislation would push even more pension plans to manage costs any way they can, including reducing participant head count, said Alan Glickstein, a senior retirement consultant with Towers Watson. The budget deal calls fo