Retirement Security Law Commons^™

Richard Kilgore V. Eleni Kilgore, 135 Nev. Adv. Op. 47 (Oct. 3, 2019), Aariel Williams

Nevada Supreme Court Summaries

NRS 286.510 provides that the eligibility depends on an employee spouse’s effective date of membership in Nevada Public Employees’ Retirement System (“PERS”), profession, number of years served, and age. The Court determined that the time does not depend on whether the employee spouse’s PERS account has fully matured. NRS 125.155 provides district courts with discretion to deny or reduce a non-employee spouse’s request for pension payments before the employee spouse’s retirement. Further, under NRS 125.150(3), a party can seek adjudication of an asset mistakenly omitted from the divorce decree within three years of discovering the mistake. The Court determined that …

Achieving American Retirement Prosperity By Changing Americans' Thinking About Retirement, Peter H. Huang

Publications

There are many decisions that Americans have to make about retirement before, at, and after retirement. For example, Americans have to decide when to start saving for retirement, how much to save, how to invest those savings, when to retire, when to claim social security, and how to take required minimum distributions from 401(k) plans or Individual Retirement Accounts. Different things can go wrong at each of these decisions for different reasons. Many Americans, for various reasons, including insufficient energy, money, motivation, time, and understanding, do no retirement planning. Some Americans do some retirement planning, yet worry they are doing …

Closing The Retirement Savings Gap: Are State Automatic Enrollment Iras The Answer?, Kathryn L. Moore

Law Faculty Scholarly Articles

Drawing on insights from behavioral law and economics, automatic enrollment IRAs are intended to address the nation’s retirement savings gap by taking advantage of workers’ inertia. Although automatic enrollment IRAs were initially intended to apply at the federal level, they have gained little traction at the federal level, and states have begun to step into the breach. Between September 2012 and June 2016, five states enacted state automatic enrollment IRA programs.

Studies have uniformly shown that workers are more likely to participate in an automatic enrollment 401(k) plan than in a traditional opt-in 401(k) plan. Proponents of state automatic enrollment …

A Closer Look At The Iras In State Automatic Enrollment Ira Programs, Kathryn L. Moore

Law Faculty Scholarly Articles

The United States faces a serious retirement savings funding gap. In an effort to fill that gap, a number of states and municipalities have begun to consider, and in some instances adopt, automatic enrollment IRA programs. Indeed, between September 2012 and June 2016, five states enacted state automatic enrollment IRA programs.

This Article takes a closer look at the IRAs in these state programs. It begins by providing an overview of the state laws creating automatic enrollment IRA programs. It then discusses the requirements that the state programs must satisfy in order to qualify as IRAs for purposes of the …

Finding A Financial Planner, Emily G. Brown Jd

Pension Action Center Publications

This fact sheet provides information on how to find the right financial planner to help you meet your retirement planning goals. This fact sheet suggests things to consider prior to picking a financial planner and answers questions like:

• What do financial planners do?
• How do you know if you need a financial planner?
• How do you find the right financial planner?
• What type of professional title does a financial planner have?

Your Former Employer’S 401(K) Plan, Jeanne Medeiros Jd

Pension Action Center Publications

When you leave a job where you have participated in a 401(k) plan, you may have a number of different options about what to do with the money in that account. This fact sheet explains those options and offers guidance about the pros and cons of each option.

Here are some frequently asked questions answered in this face sheet:

Q. Can I leave my money in my former employer’s plan?

Q. What are my other options?

Q. If I decide to withdraw the account balance from my former employer’s plan, how do I do that, and how long should it …

Hardship Withdrawals And Loans: Some Words Of Caution, Emily G. Brown Jd, Jeanne Medeiros Jd, Ellen Bruce Jd

Pension Action Center Publications

As defined benefit pension plans become more and more rare, the responsibility of saving for retirement falls increasingly on individuals. Many studies have been published about the average or median balances in retirement savings accounts and virtually all of them have reached the same conclusion - most Americans aren’t saving enough money to last them through their retirement years.

In this fact sheet we will take a look at one of the factors that contributes to this problem, that is, the availability of loans and hardship withdrawals from 401(k) retirement accounts, which can lead to lower account balances overall. Sometimes, …

Pension Action Center, Pension Action Center, University Of Massachusetts Boston

Office of Community Partnerships Posters

The Pension Action Center, (PAC) strives to improve retirees’ and workers’ standard of living in retirement through individual case advocacy; referrals to appropriate programs and professionals; and issue analysis and reform of public policy. The center, which is part of the Gerontology Institute at UMass Boston, focuses on the experience of participants in retirement plans throughout its work. The PAC is a one-of-a-kind organization in New England that touches the lives of thousands of people.

Financial Security Scorecard: A State-By-State Analysis Of Economic Pressures Facing Future Retirees, Christian Weller, Nari Rhee, Carolyn Arcand

Public Policy and Public Affairs Faculty Publication Series

As Americans increasingly worry about their retirement prospects, states play an important and growing role in retirement security policy. States already manage long-term care programs for the elderly through Medicaid. Concerned about the impact of future elder poverty on state and local budgets and their local economies, a number of states are exploring the creation of low-cost and low-risk retirement savings plans for private sector workers who lack access to pensions or 401(k)s on the job. Some states have developed programs to help older workers find work.

This report presents the Financial Security Scorecard, designed to inform state-level stakeholders and …

A Failure To Supervise: How The Bureaucracy And The Courts Abandoned Their Intended Roles Under Erisa, Lauren R. Roth

Scholarly Works

This Article addresses how courts failed to adequately supervise employers administering pension plans before ERISA. Relying on a number of different legal theories — from an initial theory that pensions were gratuities offered by employers to the recognition that pension promises could create contractual rights — the courts repeatedly found ways to allow employers to promise much and provide little to workers expecting retirement security. In Section III, this Article addresses how Congress failed to create an effective structure for strong bureaucratic enforcement and the bureaucratic agencies with enforcement responsibilities failed to fulfill those functions. Finally, in Section IV, this …

Rethinking Erisa's Promise Of Income Security In A World Of 401(K) Plans, Lawrence A. Frolik

Articles

This article discusses the evolution of retirement income funds from defined benefit packages to 401(k) and IRA accounts and how the changing dynamic has reshaped the way retirees think about post-retirement income. The article outlines the mechanics of 401(k) accounts and rollover IRAs in the post-retirement period and presents questions about the ability of retirees to successfully address the complex issues relating to investment choices including, what entity they entrust their savings to, the volume and source of distributions, and long-term sufficiency planning. The article suggests that an increase in the use of annuities may help to resolve some of …

Fact Sheet: What Influences Plans To Work After Ages 62 And 65?, Maximiliane E. Szinovacz, Gerontology Institute, University Of Massachusetts Boston

Gerontology Institute Publications

Timing of retirement and, implicitly, plans to work in later life have great policy relevance. They affect Social Security expenditures, employers’ pension expenditures, as well as labor force supply and demand. In light of the recent recession, it is particularly important to explore whether economic downturns and workers’ financial status influence their later-life work plans. To answer this question, we analyzed data from the nationally representative Health and Retirement Study (HRS), which included questions about expectations to work full-time after age 62 and age 65.

An Overview Of The U.S. Retirement Income Security System And The Principles And Values It Reflects, Kathryn L. Moore

Law Faculty Scholarly Articles

This article is designed to provide an overview of the U.S. retirement income security system from a comparative law perspective. Like many countries, the U.S. has a three tier pension or retirement income system, with the three tiers consisting of (1) Social Security, (2) employment-based pensions, and (3) individual savings. Thus, superficially, the U.S. retirement income security system resembles that of many around the world. Yet, in other ways, such as its focus on individual rights and responsibility, the U.S. system is unique.

The article begins by discussing the nine guiding principles of the U.S. Social Security system as identified …

Protecting Your Retirement Savings From Potential Creditors, Pension Action Center, Gerontology Institute, University Of Massachusetts Boston

Pension Action Center Publications

State and federal laws provide strong protections to New England residents to shield their retirement savings from creditors. The particular protections available depend on whether you have filed for bankruptcy, how your retirement savings are kept, and where you live.

The Future Of Social Security: Principles To Guide Reform, Kathryn L. Moore

Law Faculty Scholarly Articles

On February 12, 2008, the nation's first Baby Boomer, Kathleen Casey-Kirschling, was the first of her generation to receive a Social Security retirement benefit. Born one second after midnight on January 1, 1946, Ms. Casey-Kirschling was born just eleven years after the Social Security system was originally enacted, nine years after the first Social Security payroll taxes were collected, and six years after the system first began to pay monthly retirement benefits.

"As the nation's first Baby Boomer, Ms. Casey-Kirschling is leading what is often referred to as America's silver tsunami. Over the next two decades, nearly eighty million Americans …

Social Security Reform: Fundamental Restructuring Or Incremental Change?, Kathryn L. Moore

Law Faculty Scholarly Articles

In light of Social Security's long-term deficit, reform of the system appears inevitable. Commentators and policymakers have offered a wide range of possible reforms. This Article describes and analyzes five possible types of reform: (1) individual accounts, (2) progressive price indexing, (3) general revenue and/or estate tax revenue financing, (4) increasing the maximum taxable wage base, and (5) increasing the normal retirement. The Article opposes the first two proposed changes, individual accounts and progressive price indexing, because they would fundamentally restructure the current system. The Article recommends that Social Security's financing difficulties be addressed by a combination of estate tax …

Reforming Retirement Systems: Why The French Have Succeeded When Americans Have Not, Kathryn L. Moore

Law Faculty Scholarly Articles

In order to understand why the American Social Security system has been so resistant to change while the retirement systems in other countries have been amended, this Article analyzes why one country, France, was able to reform its retirement system significantly in 2003. The Article begins by briefly describing the French retirement system prior to 2003. It then provides an overview of the most significant changes wrought by the reform enacted in 2003. It then analyses why, after years of inaction and failed attempts to reform the French retirement system, the government succeeded in reforming the retirement system in 2003. …

Hope We Die Before We Get Old: The Attack On Retirement, Patricia E. Dilley

UF Law Faculty Publications

The American institution of retirement has sustained numerous attacks over the last twenty years, to the extent that it may cease to exist by the time most of today's workers reach their midsixties. Professor Patricia Dilley describes how all of the components of the "three-legged stool" that represents private pensions, personal savings, and Social Security, have declined so significantly in recent years that the combination may not be able to provide support for the elderly in the future, particularly those retired seniors who are in the lower and middle classes. Changes in employment policies, the markets for retirement savings investment, …

Lessons From The French Funding Debate, Kathryn L. Moore

Law Faculty Scholarly Articles

The French retirement system, like the American social security system, is facing long-term funding difficulties. As a result, the French are debating whether to expand the role of pre-funded retirement plans. The economic arguments presented in this debate are virtually identical to the economic arguments presented in the American debate on whether the American social security system should be partially privatized.

The French and American debates, however, diverge once history and ideology are considered. The French have a history of failed funded pensions in contrast to the United States where the failure of prominent underfunded pension led to the enactment …

The Effects Of Partial Privatization Of Social Security Upon Private Pensions, Kathryn L. Moore

Law Faculty Scholarly Articles

Social Security does not provide retirement income in a vacuum. Rather, commentators often refer to our national retirement income system as a three legged stool, with Social Security representing one of the legs and employer sponsored pension plans and individual savings representing the other two legs. Because changes in one leg of the stool are likely to have a direct impact on the other two legs, policymakers must not consider Social Security changes in isolation, but should take account of their effect on employer-sponsored pensions and individual savings. This Article analyzes how one of the most popular proposals, partial privatization, …

The Best Of Times And The Worst Of Times: Lessons From Recent Reforms Of The French Retirement System, Kathryn L. Moore

Law Faculty Scholarly Articles

Principally because of increasing life expectancy and the fact that the baby boom generation is reaching retirement age and is followed by a much smaller generation, the American social security system is facing a long-term funding deficit. The Board of Trustees of the Federal Old-Age and Survivors and Disability Trust Funds predicts that unless corrective action is taken, social security benefits will exceed dedicated tax revenues by the year 2016, and the social security system will become insolvent, that is, unable to pay benefits in full, by the year 2038.

The United States is not alone in facing these circumstances. …

Social Security Reform: Risks, Returns, And Race, Dorothy A. Brown, Karen C. Burke, Grayson M.P. Mccouch

UF Law Faculty Publications

The debate over social security reform has far-reaching implications for the economic well-being of blacks and other minority groups. In this article, we examine how blacks have fared under the existing system, and then consider the likely consequences of moving toward a privatized system. Specifically, we consider the claim, recently advanced by some privatizers, that blacks receive an especially "bad deal" under the existing system and would be better off under a privatized system. We find that, for blacks as a group, this claim tends to overstate both the shortcomings of the existing system and the advantages of privatization. Furthermore, …

Hidden In Plain View: The Pension Shield Against Creditors, Patricia E. Dilley

UF Law Faculty Publications

This Article examines the virtually unquestioned protection of retirement assets from creditors, in both state and federal law, with a view to determining whether tax qualification or even retirement itself is a sufficient rationale for preserving debtor assets in the face of creditors' claims, and if so, what the limits of such protection should be. The problems of current law stem in large part from the use of tax qualified status as a convenient shortcut for determining the appropriate bankruptcy treatment of retirement accounts. The result is a wide disparity in the treatment of debtors epitomized by the cases of …

Privatization Of Social Security: Misguided Reform, Kathryn L. Moore

Law Faculty Scholarly Articles

This article begins by briefly describing the social security program. It then discusses the reasons for social security's widespread popularity and its impending funding crisis. The article goes on to briefly describe some of the pending privatization proposals. The article concludes by discussing the practical and theoretical problems with privatizing social security. Specifically, it describes the investment risk participants face under a privatized system and the transition problems created by converting to such a system. Finally, this article explains why the privatization proposals promote misguided paternalism and misconceive the role social security should play in our national retirement system.