Pensions 101 Retirement Security

The American Pension Crisis an Alliance for Retired Americans Seminar

November 19-20, 2019

Pensions 101 & Retirement Security

Ilana Boivie, IAMAW Economist Alliance for Retired Americans

Pension Seminar November 19, 2019

Ilana Boivie-IAMAW-Pensions 101 & Retirement Security

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The American Pension Crisis an Alliance for Retired Americans Seminar

November 19-20, 2019

Best Chance for a Secure Retirement: "3-Legged Stool"

? Social Security: Basic universal benefit; keeps retirees out of poverty

? Pension: Provides monthly income to supplement Social Security

? Personal Savings: 401(k) & other savings for "extras" beyond monthly bills

Prepared by: IAMAW Strategic Resources

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Ilana Boivie-IAMAW-Pensions 101 & Retirement Security

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The American Pension Crisis an Alliance for Retired Americans Seminar

November 19-20, 2019

Pension v. 401k

Characteristic How is the value of the benefit set? How is the benefit doled out? What is the benefit timeline? Are investments pooled? Who makes investment decisions? Who bears the risk?

Is there a guarantee?

Traditional Pension Fixed formula

Monthly income stream

Lifetime income

Pooled investments

Professional asset management Employer(s) /

plan sponsor(s) Usually guaranteed

401k or other Savings Depends on account balance at retirement Typically a lump sum

Lump sums are spent down at retiree's discretion Usually individually invested

Individuals choose from plan choices Employees

No guarantee

Prepared by IAMAW Strategic Resources

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Ilana Boivie-IAMAW-Pensions 101 & Retirement Security

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The American Pension Crisis an Alliance for Retired Americans Seminar

November 19-20, 2019

There are many types of pensions....

Public Sector

Private Sector

Federal (FERS)

State/ Local

Church Plans

ERISA Plans

Multiple Employers

Single

Multi-

Employer employer

Single Employer

Prepared by IAMAW Strategic Resources

Ilana Boivie-IAMAW-Pensions 101 & Retirement Security

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The American Pension Crisis an Alliance for Retired Americans Seminar

November 19-20, 2019

...all with different rules

? Subject to ERISA? ? Who makes contributions? ? Benefit guarantees? ? Funding rules? ? Accounting standards? ? Social Security coverage? ? Rules about benefit cuts?

Prepared by IAMAW Strategic Resources

Ilana Boivie-IAMAW-Pensions 101 & Retirement Security

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