The Evolving Pension System: Trends, Effects, and Proposals for Reform

Index

Accounting: actuarial accrued liability, 39– 40, 41; entry age normal cost method, 36; pensions and, 135; projected unit credit actuarial cost method, 36 Accrued benefit security ratios, 27 Achenbaum, Andrew, 16 Aetna Inc., 23 Age Discrimination Act Amendments (1986), 79 Aging and issues of the elderly: financial status, 104; older workers, 16, 17, 20, 21, 22 American Express, 12 American Savings Education Council, 61 Anderson, Patricia M., 93–94 Annuities: adequate retirement income and, 177; appreciation of, 72; cash balance plans, 54; characteristics of, 2; contributions and, 143; defined benefit plans and, 52, 67, 68, 130, 171–72, 175; defined contribution plans and, 53, 66, 68, 105, 170, 171, 175–76; ERISA and, 24, 25, 201; inflation adjustment and, 175, 183; PBGC and, 149; pension payouts and, 150, 174; Studebaker and, 23; tax-deferred and -sheltered annuities, 143, 201; tax factors, 35; terminated plans and, 8, 34–35, 149; value of, 20 Attanasio, Orazio P., 109, 113, 114 Auerbach, Alan J., 117 Avery, Robert B., 110 Baby boom and baby bust: bridge jobs and, 97; cash balance plans and, 47; effects of, 129–31; funding of retirement benefits, 36, 41–42; pensions and, 129–30; retirement security of, 4, 47–48 Back-loading. See Benefits Baltimore & Ohio (B&O) Railroad, 12–13 BankAmerica, 57 Banks and banking issues, 13–14, 197 Benefits: accrual of, 69–73, 79–82, 87, 89, 93, 114, 133, 138; back-loading, 52, 53, 54, 64, 69–70, 80, 169–70, 171; beneficiaries of, 138–39; benefits testing, 170, 172–73, 177n22; calculation of, 81; cash outs, 67, 68; effects on employment and retirement choices, 80, 87–95; inflation and, 175–76; limits on, 141, 142, 184–85; rolling over, 53, 55, 67n36, 82, 105, 173–75; Social Security and, 88, 89; vesting and, 52, 80, 88–89, 90. 219 Index 11-3117-5 index.qxd 11/16/05 3:10 PM Page 219 See also Pensions; Retirement plans; Social Security; individual plan names and types Benjamin, Daniel J., 127 Blum, Walter J., 28 Brugiavini, Agar, 129, 133 Budgets and budget issues: budget deficits, 30–31, 32, 134; effects of pensions, 137–38, 156; fiscal 1981 budget, 29; fiscal 1982 budget, 29; fiscal 1984 budget, 32; fiscal 1988 budget, 33; President’s budget, 29 Bureau of Labor Statistics, 187 Business and corporate issues: acceptance of ERISA, 25; contribution holidays, 46; corporate equities, 124; expenditures for pensions, 15, 69; firm size and industrial distribution, 62, 85; fringe benefits, 29; fund assets and, 34–35, 52; funding of retirement, 17, 69; human resource needs, 79; investments, 133–34, 143–44, 172, 175–76, 177; nondiscrimination rules, 7, 16, 21, 33, 142, 151, 164–66, 168–69, 183; PBGC and, 148, 149; pension reform and, 201–05; pension supplementation, replacement, or substitution , 57–73; productivity, 5–6, 64, 77, 78, 82, 83–84, 86, 97; reasons for noncoverage of workers, 164–65; retirement incentives, 81, 86–92, 95, 105, 106, 115, 117; senior-executive retirements, 38; Social Security and pensions, 20–21; termination of pension plans, 25, 65, 147–48, 184; taxes, 14–15, 65, 139, 156, 159, 160, 176, 177, 180–83, 203–04; total compensation, 111, 159, 181, 200. See also Employers; Employment issues; Labor issues Career average plans, 8, 171–72, 173 Carnegie, Andrew, 13 Cash balance plans: characteristics of, 47, 133; conversion to, 51, 54–55, 57, 62, 133; early retirement and, 172–73; effects of, 4; job mobility and, 8, 172; problems of, 133; shift to, 64–65, 130; traditional defined benefit versus cash balance plans, 69–73. See also Defined benefit plans Central and Southern States Pension Fund, 22–23 Chamber of Commerce. See U.S. Chamber of Commerce Clark, Robert L., 5, 6, 62, 63, 77–101 Class action suits, 198 Clinton (Bill) administration, 180 Coile, Courtney, 94, 95 College Retirement Equities Fund (CREF), 176, 205 Colleges and universities, 13. See also individual institutions Commerce, Department of, 25 Committee on Economic Security, 17 Congress (U.S.), 23 Congressional Budget Act (1974), 29 Consumer Price Index (CPI). See Economic issues Cornell University, 13 CPI (Consumer Price Index). See Economic issues CREF. See College Retirement Equities Fund Current Population Surveys, 63, 138, 161, 173 Deficit Reduction Act (1984), 32 Defined benefit plans: accounting methods, 36, 110; benefits of, 5, 26–27, 31, 32, 33–34, 37, 43, 46, 52–55, 65–73, 80, 81, 84, 142, 143, 147, 169–73, 177, 178, 1844; characteristics of, 2, 12, 26, 44–45, 52–55, 109, 130, 133; compensation limits...