Tag Archives: pensions

2015 White House Conference on Aging

logo-WHCOA2015This is the year for the decennial White House Conference on Aging.  However, the Older Americans Act, which traditionally has outlined the Conference process, has not been reauthorized and the President’s budget has not been approved.  As a result, there are very little structure and no additional funds for the 2015 Conference.

nora-super-140Ms. Nora Super is the Executive Director of the Conference.  Her background includes more than twenty years experience in aging policy and community outreach.  The four themes that have emerged from community input, so far, are Retirement Security, Healthy Aging, Long-Term Services and Supports, and Elder Justice.  There is a blog for the Conference at  http://www.whitehouseconferenceonaging.gov/blog/   A number of regional forums are also scheduled.  The closest one to SE Michigan is the conference in Cleveland, OH on April 27th.

The Administration is using social and electronic media as much as possible to receive grass roots input and conduct informational meetings.  Everyone can participate by going to the web site and signing up to receive notices of events, such as webinars, and opportunities to participate.  You can also provide your thoughts and/or a story about your experience with aging or aging services, such as Medicare, Social Security, or in-home services, by submitting them through the following link:  http://www.whitehouseconferenceonaging.gov/submissions/register.aspx

Here’s the contact information if you have specific questions:

White House Conference on Aging
200 Independence Avenue SW, Suite 637D
Hubert H. Humphrey Building
Washington, DC  20201
(202) 619-3636
info@whaging.gov
www.whitehouseconferenceonaging.gov

Aging touches everyone.  I encourage you to participate in this opportunity for civic engagement at a time when our society includes the greatest proportion of older adults in history.

Sue Sweeney, Chair, Department of Aging Studies, Madonna University

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Retirement Security

We know that the “three-legged stool” of retirement security has largely become a “two-legged stool” over the last several decades.   The “legs” of pension, Social Security benefits, and personal savings, have been reduced to personal savings and Social Security benefits for many.  Company and public pensions (defined benefit programs) are on the wane, while 401(k) or 403(b) plans (defined contribution programs) have become much more common.     While companies often contribute to defined contribution plans up to a given percent of income, the bulk of the contributions come from the employees, and represent personal savings in a tax deferred instrument. Thus the demise of the “third leg” of the retirement security foundation.

According to the Bureau of Labor Statistics, Monthly Labor Review of December 2012, pension coverage of private industry workers has declined from 35% in the last 1990s to 18% in 2011.  Of those who are covered by a pension plan, 1 out of 5 of them participate in frozen plans.  That is, new employees of their companies are not permitted to participate.  Only 10% of private industry companies offer a pension plan, and 48% of those are larger organizations with at least 500 employees. ( But 52% of U.S. workers are employed by firms with less than 500 employees.)  Among private industry employers, there is great variation in the existence of a pension program by industry sector .  Utilities and banking related industries far exceed any other industry sector in the frequency of including a pension among employee benefits.

The National Institute on Retirement Security is a non-profit research and education organization formed by member organizations who are concerned with retirement plans and policies. The Institute recently conducted a poll to assess the attitudes of American adults toward retirement security.  The poll was administered to 800 individuals aged 25 or older through telephone interviews held between December 3 and December 22, 2012.  The findings were released in a report, Pensions and Retirement Security 2013:  A Roadmap for Policy Makers.

The report reveals that 85% of those polled expressed anxiety about their prospects for a decent retirement income, and nearly as many feel that federal elected officials fail to understand their struggles to save toward retirement.  These attitudes are not limited to Baby Boomers (those born 1946-64).  Millennials  (those born after 1976) also express concerns, and 90% of them believe lawmakers need to make improvement of the retirement system a higher priority.  Sue Sweeney, Chair, Gerontology Department, Madonna University