Open Access. Powered by Scholars. Published by Universities.®

Retirement Security Law Commons

Open Access. Powered by Scholars. Published by Universities.®

Labor and Employment Law

Paul M. Secunda

Labor Law

Articles 1 - 1 of 1

Full-Text Articles in Retirement Security Law

Pension De-Risking, Paul Secunda, Brendan Maher Feb 2015

Pension De-Risking, Paul Secunda, Brendan Maher

Paul M. Secunda

The United States is facing a retirement crisis, in significant part because defined benefit pension plans have been replaced by defined contribution retirement plans that, whatever their theoretical merit, have left significant numbers of workers unprepared for retirement. A troubling example of the continuing movement away from defined benefit plans is a new phenomenon euphemistically called “pension de-risking.”

Recent years have been marked by high-profile companies engaging in various actions designed to reduce the company’s exposure to pension funding risk (hence the term “pension de-risking”). Some de-risking strategies convert a federally-guaranteed pension into a more risky private annuity. Other ...