Welcome to the latest edition of This Week in Pensions! As we do each week, we have gathered the top stories about pensions and retirement security. This is the news you need to know in the fight for a secure retirement.
Here are this week’s top stories:
- The 401(k) Is Wreaking Havoc on Retirement by Ben Steverman: a recent study finds that the shift to 401(k)s is increasing inequality in retirement. As more companies move from defined benefit pensions to 401(k)s, the gap in retirement savings between the least-educated and most-educated workers is widening. Click here to read our blog post about this report.
- State auditors: PERA fund operating properly by Charles Ashby: Colorado’s state auditors recently examined the pension fund and gave it a clean bill of health. The auditors found that Colorado PERA was operating appropriately and properly managing its investments.
- Letter: PERA, sustainability by Albert Tecavek: a retired Colorado teacher rebuts the argument that PERA should switch to a defined contribution 401(k)-style plan because of low investment returns. He notes that over a 5 year period, PERA met its target of 7.5 percent returns.
- Va. retirement panel to take hard look at high-fee alternative investments by Michael Martz: following the trend of states like New Jersey, New York, and California, a panel in Virginia will examine whether the state pension fund is getting its money’s worth for investing in alternative assets that come with high management fees.
- Labor Department finalizes rules for state-run private-sector retirement programs by Hazel Bradford: roughly half of private sector workers do not have access to a workplace retirement plan. In response, some states have begun creating state-run retirement plans for these workers. Last week, the federal Department of Labor finalized a rule clarifying how federal regulations would apply to these state plans.
Be sure and check back next week for the latest news in the fight for a secure retirement!