 Congress Says 'No' to Social Security COLA Posted March 2010 In 2010 Social Security recipients will get a goose egg instead of a Cost Of Living Adjustment (COLA) from the federal government, making this the first year since 1975, that Social Security recipients will receive no COLA. Social Security Payments Overwhelm Payments Into Fund in 2010 Posted March 2010  According to the Congressional Budget Office, the bursting of the real estate bubble and the so called “Great Recession” that have stunned the job market, home prices and has also reduced payments the government receives to support Social Security. In 2010, the system is projected to pay out $29 billion more in benefits than it receives in payments. This milestone will occur six years before this was expected, reports the New York Times. On the Lookout for a New Retirement Standard Posted March 2010 Retirement USA (www.retirement-usa.org), a new national initiative is on the lookout for a way to have a standardized national retirement system. I.B.M., General Motors and Verizon Freeze Pension Plans As a New Year’s surprise to its employees IBM, which operates the third-largest corporate pension fund in the United States, said it would freeze pension benefits and only offer employees a 401(k) retirement plan in the future. In February General Motors the world’s largest automaker said it planned to freeze its retiree pension program, and introduce a defined benefit plan or cash balance plan, as well as make other changes in its retirement program for future retirees. Wall Street Says Corporations Are Burdened by Legacy Healthcare Costs The last few years have not been kind to America’s retirees. Recent years have seen the demise of several plans in the steel and airline industries. In 2004 United Airlines cast tens of thousands of its retirees into the welfare of the federal government run Pension Benefit Guarantee Corporation, forcing pension reduction of up to 70% for some retirees. |
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Pensions and Benefits |