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Enthusiasm seems to be growing to reopen – or at least to stop closing and freezing – defined benefit retirement plans.  The impetus comes from a more benign regulatory environment and the improved funded status of these plans, even before the recent rise in interest rates.  Reopening plans allows employers to use surplus assets…

Finance.

Social Security helps Black individuals and those with low educational attainment – and therefore low earnings – through its progressive benefit structure.  On the other hand, the nature of Old-Age and Survivors Insurance (OASI) as a life annuity inherently increases expected lifetime benefits for individuals who tend to live longer.  Regardless of how these factors…

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Since fiscal year 2019, financial markets have been jostled by a series of unusual events: 1) the onset of COVID; 2) the subsequent COVID stimulus; 3) declining interest rates; 4) rising inflation; and then 5) rising interest rates.  Despite the volatility of asset values over this period, the 2023 funded status of state and loca…

This paper explores whether exposure to tight labor markets at working ages is linked to improved financial wellbeing at older ages especially for groups traditionally disadvantaged in the labor market, including people with low income, those without college degrees, and people of color.  We also examine what role the timing of exposure to tight labor…

The headlines from the 2023 Medicare Trustees Re­port were that the Hospital Insurance (HI) program faces a long-term deficit and will deplete its trust fund reserves in 2031 and that the rest of the Medicare program will require increasing amounts of general revenues. While true, the outlook for program costs is considerably more favorable than…

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Homeowners nearing retirement have 40 percent of their wealth tied up in their homes. But to what extent do racial...

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IBM announced last November that it would no longer contribute a traditional company match and instead reopen the cash balance component of...

CRR IN THE NEWS

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Eight states have automatically enrolled hundreds of thousands of workers in retirement savings accounts, all but compelling them to deduct money from their paychecks to spend in their golden years.

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THE ATLANTIC

IBM’s new pension program may not change the game for workers. But it raises big questions about what companies owe their employees, and how existing retirement structures could better serve them.