Retirement Security Law Commons^™

Pension Action Center: Protecting Your Retirement, Louise Cataldo, Michele Tolson

Office of Community Partnerships Posters

The Pension Action Center (PAC) is a one-of-a-kind organization serving New England and Illinois that touches the lives of thousands of low- moderate income people, who often have nowhere else to turn when they need help understanding and obtaining their retirement benefits.

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The United States is facing a retirement crisis, in significant part because defined benefit pension plans have been replaced by defined contribution retirement plans that, whatever their theoretical merit, have left significant numbers of workers unprepared for retirement.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 approaches …