Employee Benefits


Phased-in retirement plans—in which, for example, employees receive a portion of their pension benefits while earning a salary—are attracting attention as skilled labor shortages persist and many older employees work past normal retirement age to supplement their inadequate savings. A new report from the Employee Benefit Research Institute says educational institutions and state and local governments face fewer legal and regulatory obstacles to such plans than do private-sector employers and, therefore, are more likely to adopt them. ( www.ebri.org/prrel/pr576.htm )

Much of the opposition to proposals allowing workers to invest their Social Security contributions in stocks is based on misconceptions, says a new study from the Cato Institute. For example, researchers say, the Social Security Administration’s ability to pay retirement and survivors’ benefits would not—contrary to some reports—be diminished by letting wage earners invest a portion of their withholdings in equities. Instead, they argue, such a strategy would inject $10 trillion to $20 trillion into the U.S. economy and nearly triple benefits for workers—assuming only a 4% real return. Consequently, the study’s authors recommend granting workers a greater role in the financial management of their retirement contributions—a process now governed solely by the SSA and over which taxpayers have no direct influence. ( www.cato.org/pubs/briefs/bp68.pdf )

SPONSORED REPORT

2018 financial reporting survey: Challenges and trends

Learn the top reporting challenges that emerged in a survey of more than 800 finance, accounting, and compliance professionals across the world, and compare them with your organization's obstacles.

PODCAST

How the skill set for today’s CFO is changing

Scott Simmons, a search expert for large-company CFOs, gives advice for the next generation of finance leaders and more, including which universities are regularly producing future CEOs and CFOs.