When C+I ≠ B+E

Most retirement plans operate on the simple equation that contributions plus investment earnings equals benefits plus expenses. Stated differently, over the long run, the money that is paid out of a retirement plan must equal the money taken in.

What happens when this is not the case? For example, what happens when the number of those receiving a pension benefit far exceeds the number who are working and contributing, and the pension plan is paying out in benefits far more than it is receiving in contributions?

Public Sector Cash Balance Pension Plans

Under the umbrella-term of hybrid pension plans are those referred to as cash balance. (For more information on hybrids in general, and specifics on different plan types, read these issues briefs which are found here and here.)

Retirees and Volunteerism

Today wraps up National Volunteer Week (April 21-27) and its call to celebrate service.

Why Now?

It’s been a surreal news week, from Boston, to ricin-laced letters, to West, Texas, then back to Boston—and these are just the major headlines.

Another set of headlines swirled around public pensions,

Public Sector’s Pension Debate

Last week, Public Sector Inc. hosted a fair, honest debate between Keith Brainard, research director at NASRA, and Jason Richwine, senior policy analyst at the Heritage Foundation. Their topic was, “Are public pension systems on the road to recovery?”

To this question Messrs. Richwine and Brainard concurred that public pensions are indeed recovering from the Great Recession — and it was the only thing they did agree upon.