Agency
recommends Congress establish a retirement security commission
The three pillars of the
American retirement system — Social Security, workplace retirement plans and
individual savings — will not provide adequate retirement security for a
growing number of people, according to a report issued Wednesday by the U.S.
Government Accountability Office.
Part of the risk, the report
said, comes from federal programs like Social Security, which is projected to
be unable to pay full benefits by 2035, and "substantial liabilities"
of the Pension Benefit Guaranty Corp.' multiemployer program.
In addition, "the federal
government is on an unsustainable fiscal path, largely due to spending
increases driven largely by health-care programs, demographic changes and net
interest on government debt," said Gene Dodaro, head of the GAO head and
comptroller general of the United States.
Saving more is key to secure retirement, PLSA panelists
contendDC plan execs can learn something from Mr. Spock and Homer
Simpson, keynote speaker saysWashington offers hope over retirement securityExecutives urged not to delay use of best practicesDefault deferral rates for DC plans get a nudge up
Other factors are a
"marked shift" to defined contribution plans instead of defined
benefit plans offered to employees, who have increased risk and responsibility
for their retirement security. Increased debt and health-care costs further
compound that risk, the report found.
Mr. Dodaro noted that the last
comprehensive federal evaluation of retirement security was 40 years ago, from
the 1979 Commission on Pension Policy. The GAO report recommends that Congress
establish an independent commission to recommend policy goals and ways to
improve the system.
The report, "The Nation's Retirement System: A
Comprehensive Re-evaluation Is Needed to Better Promote Future Retirement
Security," was sent to Congress and will be on the GAO website.
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