Your SlideShare is downloading. ×
David Lerner Associates: Review the safety of your pension plan
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

David Lerner Associates: Review the safety of your pension plan

626

Published on

In the wake of Detroit’s bankruptcy filing, some public and private sector workers and retirees in other cities are reviewing the security of their pensions

In the wake of Detroit’s bankruptcy filing, some public and private sector workers and retirees in other cities are reviewing the security of their pensions

Published in: Economy & Finance, Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
626
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
0
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Review the Safety of Your Pension Plan
  • 2. The “What-If?” Review Some financial and retirement experts are recommending that workers and retirees who are dependent on pension plans do some “what-if” scenario planning to review how well prepared they might be for a possible cut in their pension benefits.
  • 3. The Current Climate The practical result of cities like Detroit filing for bankruptcy is that city workers and retirees could see their pensions reduced, perhaps drastically.
  • 4. Pension Cuts One city in Rhode Island that declared bankruptcy in 2011 cut one out of every three of its retirees’ pension payments by more than half.
  • 5. It’s Not Only Cities The Teamsters’ Central States, Southeast & Southwest Pension Plan, the nation’s largest multi-employer pension fund, has liabilities ($34.9 billion) that are almost double its assets of $17.8 billion.
  • 6. Do Some Digging Another review step recommended by some experts is to find out to what degree your pension plan is funded. Some cities’ and states’ pension plans remain well funded, while others are not. Employees who participate in private and union pension plans are permitted by law to access their plan’s funding notice to find out to what degree their plan is funded.
  • 7. The States’ Pension Gap The gap between how much money states have promised to pay their employees in pension benefits and how much they have actually set aside to pay these benefits totaled more than $1.3 trillion in fiscal 2010, according to the Pew Center for the States’ analysis of pension and retiree health-care funding.
  • 8. Local Government It’s important to note that the pension benefits of most state and local government retired employees are relatively safe. The combined assets of all state and local government pension funds exceeded $3.5 trillion at the end of the first quarter of 2013 — this was more than 15 times the amount of money paid out by these funds annually in benefits.
  • 9. Material contained in this article is provided for information purposes only. It is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities. Member FINRA & SIPC. http://news.davidlerner.com

×