The Broken Promise of Pension Funds

Global Journal of Business Research, Vol. 1, No. 1, pp. 55-63, 2007

Posted: 17 Feb 2010

See all articles by Ellen M. Kraft

Ellen M. Kraft

Richard Stockton College of New Jersey

Anne B. Fosbre

Millennium Teaching University

Nelcy M. Davila-Aponte

Millennium Teaching University

Date Written: 2007

Abstract

It’s 2007, do you know where our pension is? It was part of the American Dream, a pledge made by corporations to their workers for their decades of hard work, that they would be assured of retirement benefits such as pension and health care. Now more and more companies are rescinding their promise, leaving millions of Americans at risk. Unfortunately, many companies have already been struggling with underfunding their employees’ pension funds and as a result many employees are losing their pensions. The Pension Protection Act of 2006 was passed by Congress and signed by President Bush with a broad overhaul of rules. The Law gives private companies seven years to shore up funding of their traditional pensions. Special rules for seriously underfunded companies require them to pay higher premiums to eliminate their shortfall. A gradual disappearance of pensions is occurring in favor of saving accounts such as 401(k)s that require workers create their own retirement plans.

Suggested Citation

Kraft, Ellen M. and Fosbre, Anne B. and Davila-Aponte, Nelcy M., The Broken Promise of Pension Funds (2007). Global Journal of Business Research, Vol. 1, No. 1, pp. 55-63, 2007, Available at SSRN: https://ssrn.com/abstract=1542880

Ellen M. Kraft (Contact Author)

Richard Stockton College of New Jersey ( email )

101 Vera King Farris Drive
Galloway, NJ 08205
United States

Anne B. Fosbre

Millennium Teaching University ( email )

900 Lakeood Avenue
Lakewood, NJ 08701-2697
United States

Nelcy M. Davila-Aponte

Millennium Teaching University ( email )

900 Lakeood Avenue
Lakewood, NJ 08701-2697
United States

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