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- Title
A National Pension System.
- Authors
Wood, James O.
- Abstract
The private retirement system in the U.S. is, in large part, a creature of federal tax policy and exists only through federal tax incentives. Although heavily subsidized, the system fails for many workers whom it should protect. The most apparent reason why many employers are terminating their retirement plans is the increasing costs of pension plan administration against the limited benefit derived by the employer. The big losers when pension plans are terminated are the non vested employees, employees vested in only small amounts and almost every employee not already eligible for retirement. In this article, it is being recommended that there should be a national pension system that is less complex, less expensive, simpler to administer, and still fair to all participants in order to resolve the issue. For any system to operate successfully, it must offer sufficient incentives for the employer to make the investment of time and capital worthwhile. The author suggests that the first step is for Congress to recognize that vested pension benefits are wages and compensation belonging to the employee. They do not belong to the employer.
- Subjects
UNITED States; PENSIONS; RETIREMENT planning; RETIREMENT income; RETIREMENT benefits; EMPLOYEE benefits; COMPENSATION management
- Publication
Benefits Quarterly, 1993, Vol 9, Issue 2, p49
- ISSN
8756-1263
- Publication type
Article