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Pensions Cut 1.1 Trillion Spending Bill

Legislature is set to vote on a $1.1 trillion spending statement this week, one with a troubling stipulation for U.S. retirees. If the bill passes, the promised departure reimbursement of millions of workers could be slashed.

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Legislature is set to vote on a $1.1 trillion spending statement this week, one with a troubling stipulation for U.S. retirees. If the bill passes, the promised departure reimbursement of millions of workers could be slashed.


Maybe not accurate now. But a condition in a $1.1 trillion expenditure bill that Congress may pass this week could set a frightening model. It would allow the promised pension benefits of up to 1.5 million workers and retirees to be cut.

The 31 million people in so-called only employer plans wouldn’t be exaggerated by the bill. The bigger fear is about the 10 million workers and retirees in pooled plans. Ten to 15 percent of those workers are in plans that may require making cuts.

A retiree with a pension of $24,000 per year and 25 years of service could see his or her yearly advantage cut in half, according to the Pension Rights Center.

Retirees age 75 and older would be secluded from some advantage cuts, and so would disable retirees. In the last 15 years, the part of the U.S.’s largest companies offering defined-benefit pensions to new workers has fallen from 60 percent to 24 percent, estimates Towers Watson.

Perhaps. Nothing in the proposed bill affects shared plans that are in high-quality financial shape, or any of the plans offered by single employers. But if the bill passes, it will smash promises that employers complete to their workers, Karen Friedman of the Pension Rights Center told Bloomberg earlier this year. “It’s going to guide to a society where no one can depend on anything.”

 

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401 K

The IRS Collected More Than $5 Billion In 2011 From Penalties Incurred By Taxpayers Who Withdrew Money From Tax-Deferred Retirement Accounts

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The IRS collected more than $5 billion in 2011 from penalties incurred by taxpayers who withdrew money from tax-deferred retirement accounts before the age of 59 1/2. The people who pay the penalty include younger workers who switch jobs and don’t bother to roll over their accounts and older workers who believe they have no place else to turn.

The median size of a 401(k) is $24,400 as of March 31, with people older than 55 having $65,300, according to Fidelity Investments. Those funds can disappear quickly in retirement, and the early withdrawals indicate that the coming retirement crisis could be even more acute than expected.
According to a Gallup survey released May 2, 2014 48% of non retired Americans plan to rely on retirement accounts as a major source of income, up from 42% in 2009 though down from a high of 54 percent in 2008.

“We try to be employee-friendly and much of it is the employees’ money,” Callans said.
Cindy Cromie, World Health Organization worked with the Service staff International Union to reply to the outsourcing, is currently 57 and still out of work. She’s making an attempt to avoid sound her remaining pension plan, which might be subject to the penalty.

Read the full Story… at Bloomberg

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Entrepreneurship

5 Mistakes You Could Be Making In Your Small Business

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Are business owners reluctant to say they have made mistakes in their small business? If you are making these 5 mistakes you can easily not be taking advantage to save time, money and also might be holding yourself back from serious improvement.

It’s one thing to be in the niche of technology with new headsets, and new software every time Apple or Google sneezes. But, what is really important? Productivity and giving employees the tools they need to be successful at their job. Also laying the groundwork for successful workplace, and keeping up with the times, with aspects, so you’re not a one-man show.

Today everything is so automated, from marketing automation, to CRM and Customer service automation. Right now the big trends are so popular. “The one size fits all,” when salesmen try and sell you new software, seems to lack the care, details, and differences, that small businesses face, and they seem like the most logical answer.

Small business is definitely a pre-structured environment, that owners have control of.

Here are 5 Practical Guidelines for Small Business Owners today.

INFRGRAPHICS

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Personal Finance

What Worries America: Poll

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Eamon Javers has the latest results of Street Journal poll on how Americans feel about an entire array of things. He also including the economy, Congress, and poor approval ratings for President Obama. we could be looking at hundreds of thousands of people infected, with profound political, economic and security implications for all of us. Interest in midterm elections and congress approval lower.

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