Olivia S. Mitchell and Richard C. Shea, Editors
The 1964 termination of the Studebaker Corporation’s pension plan wiped out or significantly reduced the pensions of thousands of the automaker’s employees and retirees. In response, the US Congress passed the 1974 Employee Retirement Income Security Act (ERISA), a monumental and revolutionary piece of legislation crafted to address corporate pension underfunding. The bill also set new rules regarding defined benefit (DB) and other retirement plans, and it established the Pension Benefit Guaranty Corporation as a government-run insurer to serve as a backdrop to U.S. corporate pensions.
Despite the bill’s far-ranging scope, in the decades since its passage, it has become evident that ERISA failed to achieve many of its intended objectives. The corporate pension scene today is in turmoil, and most private employers have terminated or frozen their traditional DB plans. In their place, employers are increasingly substituting defined contribution (DC) retirement saving plans, which pose a new set of responsibilities on employees and their firms.
This volume investigates how and why traditional approaches to pension risk management have failed, and we also explore the new mechanisms required to strengthen retirement security for the future. Lessons from international experience are also included, ranging from Singapore to Switzerland, and the Netherlands to Australia.
Publication date: March 2016 · Oxford University Press · ISBN 978-0-19-875544-9
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- Download Table of Contents and Chapter 1
- Chapter 2: Are Retirees Falling Short? Reconciling the Conflicting Evidence
- Chapter 3: Retirement Plans and Prospects for Retirement Income Adequacy
- Chapter 4: The Changing Nature of Retirement
- Chapter 5: Entitlement Reform and the Future of Pensions
- Chapter 6: Risk Sharing Alternatives for Pension Plan Design: An Overview and Case Study
- Chapter 7: United States Pension Benefit Plan Design Innovation: Labor Unions as Agents of Change
- Chapter 8: Back to the Future: Hybrid Co-operative Pensions and the TIAA-CREF System
- Chapter 9: Retirement Shares Plan: A New Model for Risk Sharing
- Chapter 10: The Portfolio Pension Plan: An Alternative Model for Retirement Security
- Chapter 11: Cultivating Pension Plans
- Chapter 12: The Promise of Defined Ambition Plans: Lessons for the United States
- Chapter 13: Insights from Switzerland’s Pension System
- Chapter 14: The Australian Retirement Income System: Comparisons with and Lessons for the United States
- Chapter 15: Singapore’s Social Security Savings System: A Review and Some Lessons for the United States
- End Pages and Index
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