541 research outputs found
Retirement Savings Accounts: President’s Budget Proposal for FY2005
CRS ReportCRSretiresavingsprop.pdf: 243 downloads, before Oct. 1, 2020
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Older Workers: Employment and Retirement Trends
CRSRetirement1001RL30629.pdf: 1464 downloads, before Oct. 1, 2020
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401(k) Plans and Retirement Savings: Issues for Congress
[Excerpt] Over the past 25 years, defined contribution (DC) plans—including 401(k) plans—have become the most prevalent form of employer-sponsored retirement plan in the United States. The majority of assets held in these plans are invested in stocks and stock mutual funds, and the decline in the major stock market indices in 2008 greatly reduced the value of many families’ retirement savings. The effect of stock market volatility on families’ retirement savings is just one issue of concern to Congress with respect to defined contribution retirement plans.
This report describes seven major policy issues with respect to defined contribution plans:
1. Access to employer-sponsored retirement plans. In 2007, only 61% of employees in the private sector were offered a retirement plan of any kind at work. Fifty-five percent were offered a DC plan. Only 45% of workers at establishments with fewer than 100 employees were offered a retirement plan of any kind in 2007. Forty-two percent were offered a defined contribution plan.
2. Participation in employer-sponsored plans. Between 20% and 25% of workers whose employer offers a DC plan do not participate. Workers under age 35 are less likely than older workers to participate.
3. Contribution rates. On average, participants in DC plans contributed 6% of pay to the plan in 2007. The median contribution by household heads who participated in a DC plan in 2007 was 15,500 in that year.
4. Investment choices. At year-end 2007, 78% of all DC plan assets were invested in stocks and stock mutual funds. This ratio varied little by age, indicating that many workers nearing retirement were heavily invested in stocks and risked substantial losses in a market downturn like that in 2008. Investment education and target date funds could help workers make better investment decisions.
5. Fee disclosure. Retirement plans contract with service providers to provide investment management, record-keeping, and other services. There can be many service providers, each charging a fee that is ultimately paid by participants in 401(k) plans. The arrangements through which service providers are compensated can be very complicated and fees are often not clearly disclosed.
6. Leakage from retirement savings. Pre-retirement withdrawals from retirement accounts are sometimes called “leakages.” Current law represents a compromise between limiting leakages from retirement accounts and allowing people to have access to their retirement funds in times of great need. In general, borrowing from a 401(k) plan poses less risk to retirement security than a withdrawal. Pre-retirement withdrawals can have adverse long-term effects on retirement income.
7. Converting retirement savings into income. Retirees face many financial risks, including living longer than they expected, investment losses, inflation, and possible large expenses for medical care and long-term care. Annuities can protect retirees from some of these risks, but few retirees purchase them. Developing polices that motivate retirees to convert assets into a reliable source of income will be a continuing challenge for Congress and other policymakers
An evaluation of earth banked tanks for slurry storage
End of project reportThis study examines the feasibility of using earth-banked tanks (EBT’s) as an alternative and economical means of winter storage for animal and other farmyard wastes. The study contains a detailed literature review on the subject, the results of a series of laboratory-scale experiments, field studies and a predictive model of the transport process through the soil liner of an earth-banked tank
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Pension Sponsorship and Participation: Summary of Recent Trends
According to the Census Bureau’s Current Population Survey (CPS), the
number of private-sector workers between the ages of 25 and 64 whose employer
sponsored a retirement plan fell from 53.1 million in 2004 to 52.5 million in 2005.
The number of workers who participated in an employer-sponsored retirement plan
fell from 43.3 million in 2004 to 43.1 million in 2005. The percentage of 25 to 64-
year-old workers in the private sector who participated in an employer-sponsored
retirement plan declined from 46.3% in 2004 to 45.0% in 2005
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Cost-of-Living Adjustments for Federal Civil Service Annuities
Cost-of-living adjustments (COLAs) for the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS) are based on the rate of inflation as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). COLAs for both CSRS and FERS are determined by the average monthly CPI-W during the third quarter (July to September) of the current calendar year and the third quarter of the previous year
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106th Congress
Among the civil service retirement issues addressed in bills introduced thus far in the 106th Congress are the correction of retirement coverage errors for federal employees assigned to the wrong retirement system; immediate eligibility for federal employees to participate in the Thrift Savings Plan (TSP); improved portability of pension benefits; and repeal of the temporary increase in employee retirement contributions that was mandated by the Balanced Budget Act of 1997. Other bills would expand TSP eligibility to include members of the armed services; improve pension coverage for temporary and part-time federal employees; and designate several categories of federal employees as law enforcement officers for purposes of determining their retirement benefits
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Federal Employees: Pay and Pension Increases Since 1969
Pay increases for current federal employees and cost-of-living adjustments
(COLAs) for retired federal employees often differ because they are based on
changes in different economic variables. Increases in pay for civilian federal workers are indexed to wage and salary increases in the private-sector, as measured by the Employment Cost Index (ECI), while federal retirement and disability benefits are indexed to price increases as measured by the Consumer Price Index (CPI). This report discusses the procedures for determining such increases
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