Benefits

Retirees Worried About Ongoing Benefits

February 25, 2014 (PLANSPONSOR.com) – Unprotected pensions, loss of retiree health care benefits and reduced Social Security payments worry retirees.

By Rebecca Moore editors@plansponsor.com | February 25, 2014
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More than half (51.3%) of retirees rank the security of their pensions and retirement savings as the most important issue they face, according to results of an online survey conducted by ProtectSeniors.Org, in conjunction with former Chairman of the Richmond Federal Reserve Bank and former White House Employee Retirement Income Security Act (ERISA) adviser Dr. Thomas J. Mackell Jr. Another 9.9% are concerned about the adequacy of their pension or retirement savings to meet their future needs.

Nearly one-third (30%) of retirees polled say they are concerned their defined pension benefits could be transferred to an insurance annuity, resulting in loss of ERISA and Pension Benefit Guaranty Corporation (PBGC) protections. Nearly four in 10 (37.9%) say their pensions have already been transferred to an insurance company and converted to an annuity.

Respondents were almost unanimous (98.1%) in their support of legislation that would protect retirees whose defined benefit (DB) pensions have or could be sold off by their former employers in a transaction referred to as pension de-risking, resulting in the loss of ERISA protections.

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