April 2002 Jan. Vol. 23 Number 4 Feb. EBRI Notes (ISSN 1085-4452) is published monthly at $300 per year or is included as part of a membership subscription by the Employee Benefit Research Institute, 2121 K Street, NW, Suite 600, Washington, DC 20037-1896. Periodicals postage EBRI rate paid in Washington, DC. POSTMASTER: Send address changes to: EBRI Notes, 2121 K Street, NW, Suite 600, Mar. Figure 2 EMPLOYEE Washington, DC 20037-1896. Copyright 2002 by Employee Benefit Research Institute. All rights reserved, Vol. 23, no. 4. Figure 1 Actuarial Balance of the Social Security Figure 5 Figure 7 Figure 6 Figure 4 Historical Values for the Unemployment BENEFIT Apr. Program Under Various Unemployment Percentage of Population Over Age 50 Receiving Pension and/or Mean Annual Income from Pensions SS: Unemployment & Immigration, Median Annual Income from Pensions and/or Pension and Annuity Income Recipiency, Females Over Age 50: p. 1 Rate and Net Immigration RESEARCH Rate and Net Immigration Assumptions Percentage Receiving Pension and/or Annuity Income, With Mean Annuity Income, Selected Years, 1988–2000 and/or Annuities in Constant 2000 Dollars for Annuities in Constant 2000 Dollars for the May INSTITUTE Population Over Age 50, by Age, Gender, ® and Median Pension and Annuity Income by Age, Educational Attain- The Employee Benefit Research Institute (EBRI) was founded in 1978. Its mission is Population Over Age 50, by Age, Gender, Net Immigration ho we are Characteristics PANEL A: 1988 1991 1995 1998 1999 2000 to contribute to, to encourage, and to enhance the development of sound employee benefit Educational Attainment, Marital Status, and Educational Attainment, Marital Status, and W ment, Marital Status, and Income Quintile, 2000 Changing Only Unemployment Rate Assumption Pension Income, p. 5 Jun. programs and sound public policy through objective research and education. EBRI is the only private, nonprofit, Income Quintile, Selected Years, 1988–2000 Income Quintile, Selected Years, 1988–2000 Average Annual Other- Age a Year Unemployment Rate Legal than-legal For Those Receiving Pensions and Annuities nonpartisan, Washington, DC-based organization committed exclusively to public policy research and education on Long-Run Ages 50–55 6.5% 6.0% 5.5% 6.1% 5.9% 4.5% Percentage Characteristics 1988 1990 1995 2000 Characteristics 1988 1990 1995 2000 Unemployment Actuarial economic security and employee benefit issues. EBRI’s membership includes a cross-section of pension funds; businesses; Jul. Ages 56–60 15.2 15.2 13.4 13.7 13.5 13.5 1960 to 1965 5.5% Receiving Pensions Mean annual income Median annual income Rate Assumption Balance trade associations; labor unions; health care providers and insurers; government organizations; and service firms. Ages 61–64 25.7 26.9 24.7 26.0 25.0 24.4 Washington Update, Characteristics p. 9 and/or Annuities from pensions and annuities from pensions and annuities 1965 to 1970 and Survivors Insurance and Disability 3.9 Age single factor on the actuarial balance of in the economic stimulus package effective way to greatly improve the 1990 to 683,449 in 1996 distribution and a doubling of sity. Human Resource Strategies, Documents Available on IOMA’s highlighting both drivers of Age DC Plan Investing, HR Retirement Risk Survey: Report of don’t go far enough in protecting pension income of men without a importance of compound interest (a Employers, the fifth largest Taft- at the Palmer & Cay Annual Gender Tax Expenditures IVillageHealth director, Personal Income Tax ited organizations, $35; non- employees or a representative to Conclusion that only 28.5 percent of women retirement annuity and/or employ- U.S. Congress. Joint Committee on tional strategy for helping small ment, and in its measures for to –1.79 percent, while an WEBRI in Focus Retirement Annuity ashington Update New Publications & Ages 65–67 35.0 34.8 33.5 33.8 33.2 32.7 Aug. Ages 50–55 $13,048 $12,899 1970 to 1975 Insurance (OASDI) payroll tax, which in $12,766 $14,000 6.1 Ages 50–55 the OASDI program. For a similar study $15,875 $15,234 $16,738 $17,519 4.0% –1.66% funding status of the Social Security enacted by Congress in H.R. 3090 (Figure 1). Other-than-legal Stages of Development and the immigrants to 1,800,000 News, Human Capital I.Q. the Internet change and the key role of workers, Republicans counter that high school diploma (calculated major topic of the Summit). Meyer Hartley fund in the United Professional Development Findings employers provide health benefits to addressing program performance.” Planning, Ernst & Young; www.allhealth.com/ accredited organizations, $40. sit on panels that make retire- over age 65 received annuity and/ Taxation. Background Informa- increase to 6.0 percent of the ment-based pension income and age Ages 68–70 35.6 38.0 36.6 36.9 36.8 35.5 Gender is a particularly strong U.S. Congress. House Committee on A change in the level of net 1975 to 1980 Age 6.8 Ages 56–60 15,373 14,555 17,109 18,435 Ages 56–60 11,645 11,066 2002 is 6.20 percent on both the em- 13,993 13,200 4.5 –1.73 of the productivity growth assumption, By Stephen Blakely, EBRI Ages 71–75 34.3 37.5 37.4 37.3 36.5 36.7 and Employment- Inter can be reached at 202/775-6351 or net Resources Organization Size Survey. $99.95; workplace benefits design in EBRI’s work advances knowledge and understanding of employee benefits and their States. Seminar. He keynoted with an www.soa.org/sections/ Tracey Esherick, executive vice American Accreditation ment-plan decisions, and which (P.L. 107-147), the Job Creation and program, the current climate of net immigration is estimated annually, the resulting or pension income that year, with [Deloitte & Touche], HR Ages 50–55 tion Relating to the Investment of the Democratic proposals would go from Figure 3). Figure 3 also shows 3.6% employees and their families. The $12,759 unemployment rate would The operational weaknesses $7,773 peaks at ages 71–75 (Figures 5, 6, 1980 397,979 Ages 61–64 13,286 13,001 17,064 15,983 Sep. Ages 61–64 9,869 9,222 ployee and employer on the first $84,900 12,221 12,000 5.0 –1.79 see Craig Copeland, “Productivity Ways and Means, Joint Commit- factor in retirement annuity and/or immigration can have a large hat we do Ages 76–80 30.4 32.0 35.5 38.1 38.4 35.9 W 1980 to 1985 importance to the nation’s economy among policymakers, the news media, and the public. It Ages 56–60 8.3 9.9 Ages 65–67 12,965 12,096 11,301 11,569 9,720 13,780 EBRI in Focus, Ages 65–67 8,270 7,509 p. 1 7,693 10,000 1 SHRM members, $79.95. Society 100 Best Companies to Work For: EBRI Has New Director of future national economic growth • of an employee’s wages and salary. Thus, too far and force employers to cut how age, education, marital status, meyer@ebri.org Michele M. Weldon, director of address on the “2002 Economic rrs_report.pdf 5.5 –1.86 Growth and the Actuarial Balance of the MayoClinic.com president, Fidelity Personal HealthCare Commission/URAC, could indirectly force employees Worker Assistance Act of 2002 concern regarding immigrants would to have ranged from 225,000 actuarial balance estimate is mean pension income of $8,734. Magazine, and 7). After age 75, annuity and/or BenefitNews.com. Retirement Plan Assets in Em- [Note: To order publications from thecommission was created by the and broader management issues that cause the actuarial balance tee on Taxation and Senate Over age 80 26.5 28.3 employment-based pension income 30.8 impact on the actuarial 33.5 35.2 33.3 Based Pension Ages 61–64 19.9 9,924 7,464 1985 427,507 Ages 68–70 10,431 10,991 12,055 13,085 Ages 68–70 does this by conducting and publishing policy research, analysis, and special reports on employee benefits issues; holding 7,278 7,115 8,135 9,084 6.0 –1.92 an actuarial balance of –2.23 percent Social Security Program,” EBRI Notes, The Politics of 401(k) Reform Oct. make it difficult to implement this (JCWAA), following more than a to 300,000 during this same –0.42 percent. for Human Resource Manage- Related issues have also been External Affairs America’s Top Employers and corporate profitability. retirement benefits. So far, plan and income are related to annuity the Financial Services Industry Security Update: The Case for CTS public service an- Delaware General Assembly to were identified in PWBA’s enforce- Investments; and Terry Savage, 1275 K Street, NW, Suite 1100, www.mayoclinic.com/ to diversify their retirement Hence, a woman age 65 or older in ployer Stock. Order from GPO. U.S. Government Printing Office Over age 65 32.6 34.4 34.8 to worsen to –1.92 percent. 35.9 36.0 34.9 pension income recipiency tends to recipiency. Figure 3 shows that in Committee on Finance. Estimates balance of the Social Security Ages 65–67 24.4 10,470 6,444 Ages 71–75 5,822 5,660 1985 to 1990 7,042 8,400 5.9 Ages 71–75 9,576 8,834 10,835 11,926 6.5 –1.99 educational briefings for EBRI members, congressional and federal agency staff, and the news media; and sponsoring public would mean that the combined payroll no. 11 (Employee Benefit Research nouncements can be heard on the ment, 1800 Duke St., Alexandria, • Income www.fortune.com/lists/ On March 21, he joined a Consumer Medical Infor- Practice group of Workplace Benefits.” financial authority and author. Washington, DC 20005, (202) 216- accounts even though the strategy at the present time. The year of bitter debate over how best to period. Thus, total net 2000 was only 66 percent as likely Congress took initial steps toward getting the media’s attention, In contrast, if the age 1990 to 1995 Waring, M. Barton, Lee D. Harbert, Ages 68–70 sponsors have expressed their (GPO), call (202) 512-1800; to order and/or pension recipiency and to 6.6 30.0 Ages 76–80 develop a pathway to basic, afford- ment program could affect its ability 9,256 8,105 8,095 9,854 6,588 10,361 have an inverse relationship to age, Ages 76–80 5,010 5,270 5,837 Gender 6,672 7.0 –2.05 of Federal Tax Expenditures for On April 1, Jim Jaffe joined EBRI as opinion surveys on employee benefit issues. tax would need to be increased by EBRI’s Education and Research Fund 2000, 43.2 percent of men over age Institute, November 2001): 7–10. (EBRI-ERF) performs the charitable, program. Furthermore, the age Nov. Ages 71–75 30.3 8,707 5,820 1995 to 2000 4.6 Over age 80 7,297 7,212 8,352 9,864 Over age 80 4,526 4,742 5,424 Male 6,708 31.4 31.5 30.0 29.0 27.9 26.1 New Publications & Internet Resources, VA 22314-3499, (800) 444-5006. bestcompanies/ distinguished judging panel in • strongest opposition to the Demo- mation Sites CTS Web site at PricewaterhouseCoopers, LLP’s On March 26, he met with staff • MEDLINEplus Health Information On March 12, he was in Miami, 9010, fax: (202) 216-9006, legislation doesn’t directly p. 13 help revive the economy. The new short-range response to the events of immigration averaged distribution of immigrants is to receive an annuity and/or new 401(k) “protection” legislation for example, with an appear- which may be explained by the fact 2.23 percentage points to have projected and Laurence B. Siegel. It’s 11 congressional publications published the amounts males received in able health care for all residents. to effectively and efficiently carry out educational, and scientific functions of the Institute. EBRI-ERF is a tax-exempt organization supported by contributions and by Ken McDonnell, EBRI Fiscal Years 2002-2006. Order director of external relations for 65 received annuity and/or pension 9 distribution of the net immi- Net Immigration 1990 Ages 76–80 5.6 492,083 28.7 Over age 65 7,408 See Storesletten, 2000. Another 9,621 9,457 10,567 5,112 11,678 Over age 65 6,308 6,068 6,780 7,812 Female PANEL B: 16.1 17.7 17.4 18.4 18.8 18.3 revenues match projected costs. The Sept. 11 will most likely be a reduc- law includes a number of so-called between 800,000 and older-skewed (only approxi- ance by ASEC President Don New York to select “The Princi- grants. The American Savings Education Council crats’ bill, but also are unhappy with 2000; Figure 4 shows the same data www.choosetosave.org/tvradio/ Audit and Business Advisory of the House Small Business (ASEC) and the Consumer Health Education Council its responsibilities for enforcing the FL, for the first meeting of the medlineplus.gov/ www.urac.org. impose a limit on company stock (CHEC) are pension payment as her male last month, but headed off in very P.M. – Do You Know Where Your by GPO, call (202) 512-1808. To that persons over age 75 in 2000 EBRI. He replaces Danny Devine, Over age 80 28.3 income, with a mean amount of 8,465 from GPO. gration is also important. 5,784 1991 6.9 528,004 finding from Storesletton of higher- Changing Only Net Immigration Assumptions Dec. percentage of taxable payroll is the Gender Holding all other assump- Gender Educational Level programs of EBRI-ERF. They are coalitions of private- and public-sector institutions with the goals of public education on avpsas.htm Background Information Relating to pal 10 Best Companies for Over age 65 AIM DocFinder Services. Committee to discuss small- 28.5 8,734 Health Insurance Association of new CIGNA Participant Com- that can be held in a 401(k) 6,000 “technical corrections” to the 2001 tion in net immigration due to 1,000,000 during the 1990s. mately 30 percent of the counterpart. If she did receive one, different directions due to the Blandin on the NBC Today 1992 Employees’ Assets Are? several of the GOP-supported order U.S. General Accounting Office for females. 7.5 607,976 Invest- ERISA benefit plan provisions, GAO skilled immigrants having even a more worked in an era before the prolif- formerly director of public relations, $14,232 per year. Figure 4 shows Having the net immigrants standard metric for reporting the Male 13,601 13,129 15,086 16,2850402 Pension Plans/Retirement Male 9,555 9,222 10,847 12,000 Media Coverage on Savings Long-Run Net No high school diploma Actuarial Balance by Distribution 17.8 19.4 18.8 19.2 19.6 18.7 Introduction saving, retirement planning, health insurance, and health quality. ® tions constant, decreasing 1993 6.9 660,011 positive impact on the actuarial balance would be expected to have a corresponding the Investment of Retirement Employee Financial Security” • provisions. Judy E. Weiss, vice president in business pension issues (EBRI’s www.docboard.org/ Choose to Save , developed Quackwatch munications Board to develop America. The Health Insurance account. Sponsored by committee tax-cut law (known as EGTRRA), tougher restrictions on immigration different ways the Republican- her mean benefit was likely to be immigrants are age 30 or Show eration of employment-based In the Board of in a segment on youth Educational Level ment Insights (GAO) publications, call (202) 512- , Vol. 4, no. 2 said. The report made recommenda- actuarial balance of the Social Security Female 7,572 7,603 8,492 9,438 2002 Female 4,833 Social Security: 5,004 Immigration 5,424 High school diploma to 6,012 who accepted a senior-level position skewed toward the young—age Issues Continues to Expand 1994 6.1 598,796 than just being in their early to prime Disney, Richard, and Edward Work the net immigration assump- No high school diploma 14.0 5,005 3,060 Recent data from the March 2001 program. by ASEC and EBRI, is an ongoing negative impact. including (among other things) resulting from the “war” on terror- Trustees’ 2001 report, the younger), the actuarial financial literacy. Plan Assets in Employer Stock award winners. Other judges on Assumption charge of retirement and savings 2002 Small Employer Retire- associate’s degree Based on committee action Unchanged Young-skewed 23.2 Older-skewed 23.9 tions intended to strengthen 23.3 new approaches for increasing Industry Resource Guide 2001. chairman Sen. Edward Kennedy www.quackwatch.com/ 23.4 23.7 22.5 controlled House and Democratic- 61 percent of that received by a (October 2001). Free. Barton 6000; to order from the Congressional pension plans. in the Department of Veterans1995 5.6 537,146 Educational Level 30 or under—would have a Educational Level working years was not examined in this High school diploma to Whitehouse. Cross-Country (millions) Bachelor’s degree distribution distribution 30.3 distribution 29.2 The aftermath of the Enron bank- 27.6 tion value from 900,000 to 25.3 22.9 21.9 Unemployment and Figure 3 Current Population Survey 4 educational program that promotes Appelbaum, Eileen, et al. Shared This article investigates the impact www.house.gov/jct/x-1-02.pdf the panel included George 1996 Agency for Healthcare Research and business matters for Metropoli- ment Survey is scheduled for 5.4 EBRI Issue Briefs 683,449 No high school diploma are monthly periodicals providing expert evaluations of 5,801participation in 401(k) plans For order information, contact (D-MA), the bill would allow 5,843 6,636 7,435 numerous changes relating to ism and a weaker economy. Should intermediate long-run man in the same age group balance for the Board of controlled Senate are defining that EB No high school diploma RI 4,000 4,162 4,841 Waring, Barclays Global Inves- last month, here’s what is likely to Budget Office (CBO), call (202) 5,160 226- oversight and to enhance PWBA’s It is also worth noting that, See Board of Trustees of the Federal article. Affairs, and Teresa Turyn, formerly associate’s degree 18.9 8,417 positive impact on the actu- 6,000 ur publicationsGraduate degree 31.8 32.9 30.3 30.4 27.0 25.8 Pension and Annuity Income Recipiency, Males Over Age 50: Percent- Comparisons of Pensioners’ O 450,000 causes the actuarial High school diploma to 1997 4.9 employee benefit issues and trends, as well as critical analyses of employee benefit 596,873 High school diploma toruptcy and enactment of pension confirm earlier findings that th Old-Age and Survivors Insurance and of increases and decreases in the level of net Work - Valued Care: New Norms Herrera, president and CEO, happen in April on Capitol Hill: retirement saving through media tan Life Insurance Company. release in May). Quality WebMD and contribution rates. Others Rick Sauers, Naylor Publications, companies either to offer stock in Health net immigration fall by one-half from Sec. 415 limits, plan valuations, assumption value for the Trustees’ intermediate (calculated from Figures 3 term. although only 18.0 percent of Bachelor’s degree tors, 45 Fremont St., 34 2809.] 20.0 Fl., San 13,594 ability to deploy its resources and 10,000 10 0.00 –2.47% –2.42% –2.52% EBRI’s government liaison, who has Immigration arial balance, because the An important note for this result on Various ASEC Activities in 1998 age Receiving Pension and Annuity Income, With Mean and Median 4.5 494,642 associate’s degree 10,315 9,929 10,181 11,532 associate’s degree 7,278 6,863 7,905 Marital Status 8,400 policies and proposals. EBRI Notes is a monthly periodical providing current information on a variety of employee benefit Incomes. $47. Corporate Docu- Disability Insurance Trust Funds, The balance to fall from –1.86 EMPLOYEE Graduate degree 23.4 and retirement changes in the 18,741 16,200 st gender, marital status, age, 0.45 campaigns, printed materials, and –2.14 –1.82 immigration in the United States, since the –2.48 for Organizing Market Work and the Board of Trustees’ intermediate catch-up contributions, deduction unemployment rate was Budget of the United States Govern- assumptions would decline to United States Hispanic Cham- • • •Dana M. Muir, an associate On March 28, he was in New www.ahcpr.gov/ The House of Representatives better monitor the effectiveness of its working with the panel include Inc., 5931 N.W. 1 the form of matching contribu- my.webmd.com/ Place, and 4). The full House is likely to Francisco, CA 94105, (415) 597- persons ages 50–60 in 2000 were the actuarial balance: The unemploy- accepted a position with the U.S. 1999 Pension and Annuity Income by Age, Educational Attainment, Marital 4.2 495,000 Bachelor’s degree 300,000 17,482 individuals would have most, if 16,977 18,231 19,400 Bachelor’s degree 12,620 12,648 13,057 14,400 Married 21.8 22.4 21.9 22.1 21.3 20.2 March topics. EBRI’s by Craig Copeland, EBRI Pension Investment Report 2001 Annual Report of the Board of provides detailed financial information on the universe of defined benefit, defined ment Services, Helpline, 7 0.90 –1.86 –1.30 –2.45 economic stimulus package have percent to –2.14 percent education, and other demographic 2000 Marital Status strategic partnerships with a wide 4.0 540,000 Graduate degree 300,000 political climate toward immigration now ment rate would have to be persistently 23,133 Unpaid Care Work. $9.95. Eco- 20,476 24,223 24,072 ment, Fiscal Year 2003 ber of Commerce; Sandra Graduate degree 17,148 15,605 20,872 professor of business law at the York to give the keynote is poised to vote on a measure 20,000 Don Phillips, managing director Gainesville, FL 32607, (800) 369- tions or to offer the stock as an limits, and rollover rules. A useful assumption value, the actuarial 5.5 percent, while the –2.45 percent. The actuarial vote on a major 401(k)-related bill BENEFIT Women ages 50 or older in 2064. Widowed Status, and Income Quintile, 2000 28.7 30.9 operations. The GAO’s report is 31.0 32.5 34.3 33.2 receiving annuity and/or pension Trustees of the Federal Old-Age and Department of Labor. Jaffe comes to contribution, and 401(k) plans. EBRI Fundamentals of Employee Benefit Programs offers a straightforward, basic explanation not all, of their working years 1.35 –1.60 –0.83 –2.42 Demographics Married 12.0 10,003 6,600 Eastgate, Leeds, LS2 7LY, United • ASEC participated and higher (lower) than the present Board of (Figure 2, panel B). When Divorced or separated 16.7 17.2 combined to bring more and more 17.2 17.3 16.7 16.4 variables have a significant appears to be unfavorable. It also examines nomic Policy Institute, Attn: www.whitehouse.gov/omb/budget/ Hernandez, president, National Survivors Insurance and Disability Alternative Health News Online variety of public- and private-sector University of Michigan Business address on “Defined Contribu- crafted by the Ways and Means EBRI offers no endorsement of, and of Morningstar, Inc.; Dr. Barry 6220 ext. 3026 or (352) 332-1252. investment option in retirement summary of the key retirement- balance would decrease by intermediate long-run 2000 were born in 1950 at the this month (April). The Senate balance would fall to income, recipients had mean and Marital Status available on the World Wide Web at Marital Status of employee benefit programs in the private and public sectors. 1.80 –1.36 –0.42 EBRI Databook on Employee Benefits –2.39 is a statistical reference EBRI with extensive experience as a under the Social Security Widowed 32.6 8,374 5,712 RESEARCH Source: Board of Trustees of the Federal Old-Age and Survivors Trustees’ assumption. Consequently, a Never married 25.0 24.6 20.1 21.1 21.2 19.2 For Those Receiving Pensions and Annuities Kingdom, +44 0113 399 4040, made presentations at the immigration increases, a Insurance Trust Funds England, Robert Stowe. The Fiscal (Washington, DC: Married media attention to these issues. 12,791 12,115 13,994 15,061 Married 8,734 7,905 9,491 10,800 impact on the likelihood of a volume on employee benefit programs and work force related issues. Introduction 2.70 institutions. Fidelity Investments –0.96 0.28 the effect of changes in the unemployment –2.34 Zanetta Green, 1660 L St., NW, related provisions of the law is –0.28 percentage points, or about assumption for the level of –2.39 percent under the older- fy2003/index.html Association of Women Business School, specializing in employee tion Health Care: Fact or www.altmedicine.com/ Committee and the Education www.gao.gov/daybook/020315.htm Hewitt Associates. Health Care assumes no liability for, the cur- Sheckley, professor and section plans, but not both (as many latest. They are therefore part of a timetable is less certain, since the median incomes that were, on Insurance and Disability Insurance Trust Funds, Divorced or separated 14.9 The 2001 Annual Report 10,348 6,864 congressional staffer (he served as short-term recession that temporarily system before being eligible to Percentage Relocation Board of Trustees of the Federal Old-Age Widowed 7,750 7,957 8,376 9,165 Widowed 4,645 5,189 3.60 5,424 Income Quintile 6,000 –0.61 0.86 –2.29 www.corpdocs.co.uk. following conferences: EBRI, its team and pro- significant improvement in INSTITUTE Challenge of an Aging Industrial worker receiving a retirement ® Never married 20.9 12,678 8,850 of the Board of Trustees of the Federal Old-Age and Survivors Insurance has underwritten the Washington, rate on the financial status of the Social Suite 1200, Washington, DC Owners; Howard Wolosky, benefits law. Fancy,” for the Center for and Workforce Committee that increases the unemployment rate, with rency, accuracy, or availability of any head of the University of Expectations: Future Strategy companies currently do) unless available online at cybERISA.com 15 percent of the Board of Trustees’ net immigration was 900,000 Senate Finance Committee does not cohort of women who, on average, skewed age distribution with Receiving Pensions Mean annual income Median annual income average, comparable to or greater The strong economy during the late 1990s press secretary to the House Ways Divorced or separated 7,231 7,363 and Survivors Insurance and Disability 8,135 9,600 Divorced or separated 10,242 collect benefits. In contrast, 10,906 11,474 12,940 Lowest 4.4 4.6 3.0 4.7 4.0 3.7 and Disability Insurance Trust Funds (Washington, DC: Board of Trustees Fidelity Investments. Building National Defined Contribu- ® the actuarial balance occurs. 6 Runzheimer International. Survey World. $21.95. Center for Strate- grams, have been assisting the rate returning to its original path, annuity and/or employment-based Characteristics and/or Annuities from pensions and annuities from pensions and annuities Security program, in light of the recent 20036, (202) 775-8810. The Challenge of Managed Care associate publisher/executive The intermediate Income Quintile CMHS Knowledge Exchange Net- DC, Choose to Save Corporate Innovation senior stresses investment advice, program since Never married 11,417 information on these sites. Connecticut’s Adult Learning and Direction 2002. Free. Hewitt the plan sponsor also offers a 11,133 14,679 13,519 (www.cyberisa.com/ 2001 report’s value. Consequently, a annually. 1,800,000 of immigrants. spent fewer years in the labor yet have a package, and Finance will than those received by persons over Never married 8,734 7,905 Insurance Trust Funds, 2001). 8,368 EBRI Trustee Tom Second 9,600 PANEL C: 23.4 21.6 13.1 14.5 13.9 12.7 and Means Committee for 10 years), and into 2000 was an important factor in the having the net immigrants of the Federal Old-Age and Survivors Insurance and Disability Insurance IRS Releases Latest Employee Contact EBRI Publications, (202) 659-0670; fax publication orders to would have an insignificant impact on 1,2 Futures: How Workplace Savings tion Council 2002 Spring Lowest 3.5 2,675 If the assumed value doubles 2,412 & Analysis of Employee Reloca- gic & International Studies, 1800 hundreds of reporters, and have Middle Changing Both Net Immigration 40.3 40.6 33.4 34.8 34.5 33.0 pension payment in retirement. its inception in January 1998. increase in the unemployment rate relative Carre, Francoise, et al. Nonstandard change in the number of immigrants erisa_new_current.htm), the Web assumptions are considered Regulation: Making Markets editor, The Practical Accoun- McMahon of the Pacific Maritime health care executives’ seminar. work greater employee diversification Program; Rochelle Lamm, chief Associates LLC, Attn: Publica- traditional defined benefit plan. force than younger cohorts. indicate whether a bipartisan 5 age 60 (Figures 5, 6, and 7). These Income Quintile ubscriptions/orders improvement in the Social Security Trust Funds, 2001). Income Quintile and has worked in the Washington skewed toward older individu- See Kjetil Storesletten, “Sustaining Age the actuarial balance. However, if the S (202) 775-6312. Subscriptions to EBRI Issue Briefs are included as part of EBRI Second 13.5 Plan News 3,132 2,064 Fourth and Unemployment Rate Assumptions 33.4 34.6 39.4 34.9 34.8 33.8 Are Shaping the Future of Retire- Conference; “Financial a been featured in articles in the to 1,800,000, the actuarial Wall tion Policies & Costs. $360. K St., NW, Washington, DC There may also be a strong Other-than-legal net immigration is estimated to average between Lowest 2,173 2,198 2,316 2,681 Lowest 1,625 1,517 1,980 2,400 1 to the near-record lows in recent years. After Work: The Nature and Challenges Work? tant; William Carlino, Ages 50–55 mentalhealth.org/ rights, and greater notification 5.4% $20,709 executive officer of the Academy tions Desk, 100 Half Day Rd., The bill also calls for employer $18,600 site of TRI Pension Services will have an impact on the financial the Board of Trustees’ “best © 2002. Because of relatively lower labor package is possible. The issue has Association is a member of the Fiscal Policy Through Immigration,” recession does lead to a persistently data suggest that many persons who program’s 75-year actuarial balance. Middle 31.7 6,206 5,350 membership, or as part of a $199 annual subscription to EBRI Notes and EBRI Issue Briefs. Individual copies are available with private sector (both profit and Highest 24.2 25.4 25.4 als would have a negative 23.5 22.3 20.8 Unemployment Rate and 225,000 and 300,000 persons per year over the period 1980–1998. Second 3,995 3,558 2,975 3,370 ment. http:// Second Security in Later Life,” 3,202 2,720 1,993 Long-Run Net 2,132 Long-Run balance would improve to Runzheimer International, Ages 56–60 20006, (202) 775-3119, e-mail: 17.2 Street Journal The Internal Revenue Service has 21,674 , the Washington 18,000 correlation between these same Journal of Political Economy, Vol. 108, higher unemployment rate, the described Fourth 26.9 presenting the historical values of these 12,439 of Changing Employment Ar- 11,500 status of the Social Security pro- estimate” for the values of Employee www.hcfo.net/pdf/ editor-in-chief, prepayment for $25 each (for printed copies) or for $7.50 (as an e-mailed electronic file) by calling Accounting to participants (both regarding of Financial Services Studies, Lincolnshire, IL 60069, (847) 295- exemption for independent force participation rates, women in become highly politicized in the retired early in the 1990s may have Council. nonprofit) for Powell Tate and the According to the Board of Trustees of the impact on the actuarial Middle 8,065 6,939 5,598 6,571 Middle 7,505 6,456 4,922 EBRI Takes Research Results 5,600 Net Immigration CHEC’s Research Project in Immigration Unemployment Actuarial Ages 61–64 29.4 20,489 16,200 no. 21 (April 2000). Storesletton uses a result would hold. buildingfutures.fidelity.com/ or e- National Initiative Roll Highest 18.3 22,215 –1.36 percent. The actuarial 18,000 Runzheimer Park, Rochester, WI books@csis.org. Source: Employee Benefit Research Institute tabulations of the March 1989, 1992, 1996, 1999, 2000, and Post, just published the Winter 2002 the New York Times, USA EBRI or from www.ebri.org. Change of Address: EBRI, 2121 K Street, NW, Suite 600, Washington, DC 20037, (202) Benefit variables and the amount of important factors, the article describes the rangements. $29.95. Cornell gram—possibly quite large if the the factors affecting the managedcare.pdf Today; Deborah J. Lucas, PhD., Consumer and Patient Health the source of investment advice LLC, creators of adult learning 5000. investment advice; and manda- Senate, making it less than a 50 per- the older age group are more likely Fourth 14,115 13,042 11,757 13,634 done so because they were eligible Fourth 13,660 Old-Age and Survivors Insurance and 12,648 11,227 Assumption 12,312 Rate Assumption Balance Center for Budget and Policy Ages 65–67 41.4 15,802 balance. These results corre- 11,580 dynamic equilibrium model of population On the Road ERISA Advisory Committee Second Phase 2001 Current Population Survey. 11 mail: buildingfutures@fmr.com A change in immigration Out Conference sponsored 659-0670; fax number, (202) 775-6312; e-mail: Publications Subscriptions@ebri.org. Today, Los Angeles Times, Boston edition of balance would improve Employee Plan News, Membership Information: Inquiries 11 53167-0009, (800) 558-1702. Research pension income received from Highest 21,835 19,762 22,812 24,000 Highest 26,753 Again, the change in the level of net 23,387 24,955 27,571 SSASIM policy simulation model results University Press, Sage House, 512 Household International Ages 68–70 Information Section and the imposition of so-called 42.0 16,272 Pauly, Mark V., and John S. Hoff. programs for the retirement tory insurance against fiduciary 12,000 change is large. Social Security program’s cent likelihood that anything will be to receive pension income through for early retirement benefits and/or Disability Insurance (OASDI) Trust Funds, transition similar to that of Alan J. immigration—that allow for the Priorities). He can be reached at Source: Employee Benefit Research Institute tabulations of the March 2001 Current Population Survey. spond with the work described Members Named GAO: PWBA Repairs Still Needed regarding EBRI membership, ASEC partnership, and/or contributions to EBRI-ERF should be directed to EBRI President/ EBRI President and CEO Dallas (millions) immigration would have to be persistent, with your name, company’s name, by one of ASEC’s govern- Ages 71–75 44.8 –0.61 percent if the immigration 14,673 10,800 Institute- could possibly result in a The EBRI-ERF Consumer Health Globe, Financial Times, Newsday, which includes articles on SEP employment-based retirement Auerbach and Laurence J. Kotlikoff in concerning the actuarial balance of the East State St., Ithaca, NY 14850, solvency. Employer’s Tax Guide to Fringe Professor of Finance, Kellogg caphis.mlanet.org/ “blackout periods” when 401(k) industry; Charlie Ruffel, chief Responsible Tax Credits for breach of duty for 401(k) plans. 9 their husbands, as spouses or enacted into law before the fall 2002 were able to purchase a sizable 202/775-6353 or jaffe@ebri.org in 1997 the program’s actuarial balance was estimation of the OASDI program’s Entitlement Programs earlier by Storesletten. Source: Employee Benefit Research Institute tabulations of the March 1989, Source: Employee Benefit Research Institute tabulations of the March ASEC Chairman Dallas Salisbury at the above address, (202) 659-0670; e-mail: salisbury@ebri.org 0.00 7.0% –2.67% not transitory. Ages 76–80 46.7 13,117 9,000 U.S. Labor Secretary Elaine L. Chao Education mailing address, and phone change in the unemployment ment partners, the Dynamic Fiscal Policy Salisbury continued his series of (New York: assumption increases to 3,600,000. The General Accounting Office Education Council (CHEC) is in the San Francisco Chronicle, contributions; revised forms and plans. 2, 3 Social Security program, assuming different (607) 277-2211. Benefits: For Benefits Provided in School of Management, North- participants are prohibited from 1991, 1996, and 2001 Current Population Survey. executive officer of Health Insurance. $10. AEI Press, Many of these provisions were Plan Spon- election. Speaking at a bankers’ survivors, than through their own 1989, 1991, 1996, and 2001 Current Population Survey. annuity, and therefore no longer –2.23 percent of taxable payroll. actuarial balance, beneficiaries’ 0.00 4.0 By 2001,–2.27 Social Security Over age 80 41.4 11,407 Moreover, an increase in the 8.292 Endnotes Cambridge University Press, 1987). U.S. Congress. Senate Special and Research Editorial Board: Dallas L. Salisbury, publisher; Steve Blakely, managing editor; Cindy O’Connor, production. Any views expressed in this spring road trips in March, pre- named five new members to the number. rate as more or fewer indi- Cooperative Extension (GAO), the investigating arm of second phase of its Robert Wood income of the older population, the jsonline.com, publications; published employee than the March CPS. Part of this The actuarial balance can Milwaukee Journal For example, in 2000, 0.45 4.5 –2.01 the work force than men of similar Over age 65 43.2 values for the unemployment rate and the Mishel, Lawrence, Jared Bernstein, 14,232 10,200 2002 western University; John G. Directory of Health Organizations reallocating their assets). This sor c/o Publisher Resources Inc., 1224 also in a House bill introduced magazine; and Lynne Ellis, group in Washington on March 12, savings or employment. Widows needed to work for financial rea- it had improved to –1.86 percent of taxable benefits, and various indicators of 1 publication and those of the authors should not be ascribed to the officers, trustees, members, or other sponsors of the Employ receive annuity and/or pension unemployment rate has a ee Benefit Effects on Actuarial Balance ® Aaron, Henry J., and Robert D. 6 Committee on Aging. Moderniza- A present value comparison of the Fund. senting the results of EBRI 0.90 5.5 –1.86 Fung, Archon, Tessa Hebb, and Joel Choose to Save System (CES); and Has New The See Board of Trustees, 2001 p. 86 and also be affected by a change in disparity arises from NIPA’s ac- Advisory Council on Employee viduals compete for a similar Congress, released a report March Johnson Foundation-supported March CPS allows the most de- Sentinel, Houston Chronicle, USA plan guidance; a calendar of upcom- 27.4 percent of men age 50 and 4 7 level of net immigration. and John Schmitt. The State of www.irs.gov/pub/irs-pdf/p15b.pdf Borman, vice president of ages and tend to have lower-paying dirline.nlm.nih.gov package would allow workers to director of personnel and Heil Quaker Blvd., P.O. Box 7001, by Rep. George Miller (D-CA). Rep. John Boehner (R-OH), chair- constitute the largest proportion of sons. However, it is also likely that Research Institute, the EBRI Education and Research Fund, or their staffs. Nothing herein is to be construed as an attempt to Educational Level aid or hinder payroll. However, the decline in the the macro economy. negative impact on the actu- projected future revenues (payroll taxes 1.35 6.0 –1.66 income. All rights p. 72. Reischauer. Countdown to tion of Social Security and Medi- Welfare and Pension Plans (ERISA Using various values for the unem- number of jobs. If net immi- Rogers. Working Capital: The Director Boston Globe Personal research before a wide range of immigrants’ age distribution, that is, counting of lump-sum distributions the adoption of any pending legislation, regulation, or interpretative rule, or as legal, accounting, actuarial, or other such 15 concluding that further improve- research project to learn more tailed breakouts of individual No high school diploma 24.2 Weekend, Consumers’ Reports ing benefits conferences; and 9,095 6,540 and professional older with a graduate-level jobs, a situation due in large part Working America 2000-2001. finance and chief financial sell company stock contributions benefits, Spang & Company. La Vergne, TN 37086-7001, (800) and taxes on benefits) coming into the women over age 50 receiving man of the House Education and 3.60 7.0 –0.80 underestimates total income of the some persons ages 50–60 receiving tions in directly comparing the economy and increase in the unemployment individual retirement accounts Demographic characteris- arial balance, while a decrease reserved. 7 Reform: The Great Social Security care. Order from GPO. advice. High school diploma to ployment rate and the level of net organizations: Advisory Council) on March 15. The gration increases to 3,600,000 Power of Labor’s Pensions. $35. Finance Conference & ments are needed in the Department about the attitudes and practices of For more information on SSASIM, see incomes, allowing differences Consumers’ Research creation of a new technical clearing- the number of immigrants in each paid to younger workers as pension magazines, program versus the projected future education received an annuity 3.60 4.0 –0.43 In a related reorganization of duties,to leave taken from work to provide $24.95. Cornell University Press, Financial Services Fact Book 2002 officer, Eichleay Group; and eMedicine World Medical Library from their employers after three • Later in the month he was with 937-5557. Workforce Committee, said that annuities and/or pensions in 2000 retirement annuity and/or employ- elderly, especially if pension income rate both before and after Sept. 11 are likely income of individuals using CPS (IRAs). The term “annuities” is associate’s degree 27.3 14,424 11,400 Historical Values of the Unemployment tics such as education, marital in the unemployment rate has Martin Holmer, Debate – Revised and Updated for White, Joseph. False Alarm: Why Introductory Guide to Retirement Provisions in Unemployment Rate costs (benefits and administrative costs) immigration, the SSASIM simula- • On March 6, he was in Boston Cornell University Press, Sage Expo. age group. When the age distribution income. In addition, because some ERISA Advisory Council makes individuals annually and the of Labor’s Pension and Welfare employers affecting health care correlated with individual demo- Press Democrat, U.S. Newswire, house. The newsletter is available and/or pension income, compared EBRI Notes is registered in the U.S. Patent and Trademark Office. ISSN: 1085-4452 1085-4452/90 $ .50+.50 Sage House, 512 East State St., EBRI’s Cheri Meyer has taken over www.iii.org/financial/ Michelle Schmitt, past-presi- family caregiving. However, on Bachelor’s degree www.emedicine.com/ years, instead of waiting until 23.6 23,564 U.S. Congress. House Committee on the Denver Chapter of the 19,200 (32.6 percent). “political reality” limits the likeli- ment-based pension income were with that of other datasets. is simply misreported as originating to halt this improvement in the actuarial SSASIM (Washington, DC: Policy added because of the prevalence of a positive impact. A half a Source: Employee Benefit Research Institute estimates using SSASIM. Rate and Net Immigration status, and income remained steady outgoing from the program. The stan- 2001. $12.95. The Century the Greatest Threat to Social Economic Stimulus Law filming a set of education recommendations to the Labor tion model is able to estimate the House, 512 East State St., Ithaca, unemployment rate increases • Planning and preparation of the immigrants is skewed to the pension plans are administered by Benefits Administration, even When holding all of the other coverage made available through graphic characteristics such as age, Graduate degree 27.4 Buffalo News, Connect, Harrisburg online at www.irs.gov/ 27,151 24,000 responsibility for the Choose to with 24.2 percent of men without average, today’s younger women Ithaca, NY 14850, (607) 277-2211. dent, Society of Human Simulation Group, January 2002) they reach age 50, as many Western Pension Benefits Energy and Commerce. (1) hood of any significant legislative Widows receive the lowest dard time frame for assessing this forced out of the labor force involun- from other sources in the March balance. Furthermore, the events of that day th indicators of the likelihood and lump-sum distributions from percentage point change in the Foundation, 41 East 70 Security and Medicare Is the St., New changes in the actuarial balance of videos (that can be viewed on In five-year periods from 1960 to 2000, the Department on current employee NY 14850, (607) 277-2211. to 7.0 percent, the actuarial continued for the ® though PWBA has taken actions to the workplace. Meetings with gender, marital status, and educa- Patriot, retirementplans/display/ young (more than 95 percent are age third parties or are paid out in lump- President Bush March 9 signed into and The Denver Post. available at www.radix.net/~holmer/ a high school diploma—a differen- assumption values constant at the Marital Status calculation for the Social Security Save savings education campaign, tend to spend more time in the 2 Society for Human Resource Man- Legislation [in 2002] Affecting Resource Management. More FDA/Center for Drug Evaluation and plans require. Council at their annual confer- Medicare Reform: Providing mean and median retirement action on pension reform this year. tarily—by disability or layoffs—and CPS. However, given that NIPA also affected attitudes about immigration. The term “employment-based defined contribution plans. A amount of annuity and/or pension unemployment leads to a York, NY 10021, (800) 552-5450. Campaign to “Save” Them. Could we send a friend or colleague a complimentary guide.pdf. Did you read this as a pass-along? Stay ahead of employee benefit the OASDI program from the level Married www.yahoofinance.com) which 27.0 unemployment rate ranged from a low of 16,909 12,000 Hewitt Associates. (1) How Well Are program is 75 years. RetireMint™ conference 30 or younger compared with the sum distributions and managed by benefit issues. balance of the program would strengthen its enforcement activi- levels matching the Board of Trust- employers have been conducted in tion to be identified. However, Additionally, EBRI data were cited 0,,i1=57&genericId=6925,00.html law a bill that provides short-term tial of 3.2 percentage points agement. Layoffs and Job Secu- and is overseeing the development of Company Stock than a thousand companies work force than did women who Research ence making a keynote Prescription Drug Coverage for annuity and/or pension income consequently had to settle for below- Underlying the debate pensions” refers to income coming reports $120.8 billion more incomeA paper by Kjetil Storesletten retiree may take some or all of the 0.06 percentage point to a 4.0 percent and there is a decline in Widowed issues with your own subscription to 35.7 recipiency from 1988 through 2000 12,194 EBRI Notes for only $49/year 8,400 copy of EBRI Notes? Friedman, Sheldon, and David C. $42.50. The Johns Hopkins 8 update individuals and employ- 3.9 percent from 1965 to 1970 to a high of 2 using the Board of Trustees’ inter- Employees Saving and Investing and expo, to be held in New present assumption of approximately another party or the retiree himself relief to defined benefit plan spon- improve by 1.06 percentage points ties. ees intermediate levels, a change of Chicago and New York to probe the Generally, one would not just change there is some controversy sur- in Associated Press and other See Board of Trustees of the Federal (Figure 3). While notable, this rity Survey. $19.95; SHRM several new public service announce- www.psca.org/wash/pdf/ from across the nation competed were age 50 and older in 2000. • www.fda.gov/cder/drug/ The Senate Finance Commit- presentation on “Working Seniors. (2) The Potential for between Republicans and Democrats amounts among women of any Divorced or separated 18.5 15,993 12,000 average pension incomes. from an employment-based pension electronically e-mailed to you or $99/year printed and mailed. For from OASDI than the March CPS, examines the impact of immigration on the (Figures 5, 6, and 7). lump-sum distribution and pur- 0.07 percentage point change in the the net immigration to zero individu- Jacobs. The Future of the Safety University Press, 2715 N. Charles one variable when setting assumptions mediate assumptions. SSASIM can ers on new savings 8.3 percent from 1980 to 1985 (Figure 1). The new members are: Old-Age and Survivors Insurance and relative to the Board of Trustees’ in 401(k) Plans: 2000 Hewitt York City May 17–18 (more findings of an earlier Web-based rounding the validity of the March The report, Pension and newswire stories that have been two-thirds of the immigrants being or herself (e.g., in the form of an sors facing sharply higher 2002 and Never married 17.6 14,605 9,600 differential in receipt of an 0.5 percentage points in the unem- ments, a number of new education Hence, the aggregate pension and members, $9.95. Society for compstockleg.pdf for the prize, which is sponsored tee is likely to work on a bill. more information about subscriptions, visit our Web site at Longer: Bridge Jobs and Phased Discrimination in Health Insur- marital status (Figure 4). In 2000, is a basic dilemma: How to “reform” this suggests that the March CPS funding status of the Social Security pro- plan (defined benefit and defined chase an annuity. Data on for an estimation of the actuarial Social Security program’s actuarial als annually, the actuarial balance Disability Insurance Trust Funds, The Net: Social Insurance and Em- St., Baltimore, MD 21218-4319, Send an issue to closely replicate the results of the opportunities created by the With the exception of the period from 1965 • Universe Benchmarks. $350. David L. Wray, president of the information is available at age 30 or younger), the actuarial IRA), pension income may be intermediate assumptions, but is Welfare Benefits Administration: survey more deeply. A third is CPS data in relation to its informa- syndicated nationally, and in 2003 pension funding and PBGC annuity and/or pension income ployment rates leads to an approxi- www.ebri.org or complete the form below and return it to EBRI. 5 Income Quintile Human Resource Management, brochures for print and Web distri- by The Principal Financial annuity recipiency for women and HealthWeb Should they embrace the Senate Retirement in an Aging Na- ance Based on Predictive Genetic 10 protections for 401(k) participants the mean annuity and/or pension balance, as changes in certain variables contribution plans, including 1997 Annual Report of the Board of does not only underestimate pension gram. He found that a significant increase annuities and IRAs are included in Thus, a 9 percent change would fall to –2.27 percent, which is balance. ployee Benefits. $29.95. ILR (410) 516-6956. Endnotes Lowest 2001 tax law (EGTRRA). 4.6 to 1970 and the recent period of rapid 2,695 2,376 actuarial model used by the Social (2) Trends & Experience in 401(k) Profit Sharing and 401(k) www.retiremint.com). Age balance of the Board of Trustees’ misreported by respondents as premium obligations. The package 0.19 percentage points worse than if Opportunities for Improving Man- mate 0.06–0.07 percentage point planned for April 10 in Atlanta and tion about pension income and totalappearances on a number of televi- would be expected to correlate with Organization pales in comparison with the 1800 Duke St., Alexandria, VA Trustees of the Federal Old-Age and The MetLife Survey of American bution, and an update of the CTS Group of Des Moines, IA. the amounts they receive are likely www.healthweb.org/ Health, Education, Labor, and tion.” Tests. Order from GPO. income for widows was $8,374, without also increasing the regula- in the number of immigrants with medium 401(k) plans, sponsored by both income but may also underestimate an attempt to give a complete in the unemployment rate leads to 0.61 percentage points lower than if Second 10.9 4,034 2,376 Press, Cornell University Press, 1 Security Administration’s Office of changes in other variables. For example, Fidelity Investments produced Name economic expansion from 1995 to 2000, the Plans. $250. Hewitt Associates the unemployment rate had re- Council of America. agement of the Enforcement Program a fourth will be conducted in income of the older population. For sion and radio shows, and especially intermediate assumptions improves coming from other sources (e.g., also extends the tax code’s sunset Survivors Insurance and Disability differential in the The data in this article were amounts these change in the actuarial balance Web site at www.choosetosave.org to increase over time as these While it is not surprising that the 22314-3499, (800) 444-5006. • Attitudes Towards Retirement On March 23, he was in Pensions Committee (HELP) • On March 20, he opened the tory burdens and administrative compared with $12,678 for women total income received by the older to high job skills who are in their early- to private- and public-sector employ- Middle 34.7 picture of income generated from 6,986 5,952 Address approximately a 3.5 percent change when the inflation rate increases, the the net immigration number was P.O. Box 6525, 750 Cascadilla St., Insurance Trust Funds (Washington, DC: 8 the Actuary to produce the Board of the video, which also included unemployment rate averaged 5.5 percent or • LLC, Attn: Publications Desk, John J. Szczur, director of to –1.30 percent over the standard assets, personal savings). Neverthe- mained at the inter- mediate tabulated from the March Current rd (GAO-02-232), Phoenix. example, the 2000 National Income said the GAO “identi- For example, if in trade publications such as date for the 1996 Mental Health men received: In 2000, men with (Figure 2, panel A). Fourth 39.8 14,338 13,296 Health Care The first new PSA was completed in www.metlife.com/Business/ Williamsburg, VA, for the 23 younger generations retire. How- Intelihealth bill, then enactment this year is Organization likelihood of receiving an annuity 2002 Conference Board Em- costs to the point where employers who were never married nominal interest rate would also be ers), whether in the individual’s population. The extent to which the prime-working years could have a consider- employment-based plans through- Board of Trustees of the Federal Old-Age unchanged from the intermediate in the actuarial balance. Ithaca, NY 14851-6525, (607) 277- Human Resource Management Highest Harold Evensky, principal, 21.9 more. Even in the first half of the 1990s, the 29,592 26,207 Trustees’ estimates. SSASIM is City/State/ZIP 100 Half Day Rd., Lincolnshire, IL investments for the Central future 75 years from the –1.86 per- less, just because March CPS data Parity Act to Dec. 31, 2003, and assumption of 5.5 percent (Figure 2 Population Surveys, published fied weaknesses in PWBA’s the unemployment rate changed and Product Accounts (NIPA) On March 20, CHEC also Pensions and Investments, Defined graduate-level degrees, on expected to increase. Furthermore, time for the second National Summit Images/met_survey_aatr.pdf “State of the Union” talk on ever, women older than age 50 who www.intelihealth.com/ very unlikely. That measure and/or pension income increases ployee Benefits Conference in and Survivors Insurance and Disability (Figure 4). either stop sponsoring retirement able positive impact on the Social Security own name or as a survivor, and American Accreditation HealthCare March CPS underestimates income out an individual’s working career. While significantly increas- assumption with a 4.0 percent Address 2211, based on 13 economic and demo- Evensky, Brown & Katz; unemployment rate averaged 6.6 percent. panel C). For comparison, if the 60069, (847) 295-5000. Pension Fund of the Interna- management of its enforcement changes in the assumptions could have met with the Delaware Health Care survey reports over $214 billion Contribution News, cent before the skewing of the may understate pension income, it Society for Human Resource Man- makes medical savings accounts BNA’s Pension Insurance Trust Funds, 1997). average, received nearly four annually by the U.S. Census from 5.5 percent to 5.0 percent, the on Retirement Savings Feb. 27– are in the lowest income quintiles with age, it is interesting to note emerging developments in the contains some provisions similar New York with a keynote Your Name plans or cut back their matching On average, younger is unknown because of the limita- program’s funding status, reducing the need Source: Employee Benefit Research Institute tabulations of the March 2001 Current Population Survey. Commission/URAC. URAC ing net immigration could be an unemployment rate. offsetting effects. However, this study is www.cornellpress.cornell.edu. graphic assumptions—including the Martin Nissenbaum, national The level of legal net immigration tional Union of Operating immigration distribution (Figure 2, does not necessarily follow that it agement and Fisher College of unemployment rate decreases to Bureau. Of all datasets reporting strategy and investigative process, in actuarial balance would improve Commission to discuss an educa- more income from private pensions City/State/ZIP & Benefits Reporter, Plan Sponsor, (MSAs) available through 2003. 3 times the median annuity and/or Mar. 1, and focuses on youth and the employee benefits environment may continue to be least likely to to the House measure, but which that the direct relationship between address on “Trends in Benefits,” Taxable payroll is the amount of wages contributions. While Democrats tend women today spend less time in Directory of Accredited Organiza- to increase taxes or cut benefits. Therefore, a only an illustration of the effect of a during the 1990s ranged from 492,083 in unemployment rate and level of net Engineers and Participating panel B). With young-skewed Business, The Ohio State Univer- The provisions are contained its overall human capital manage- from –1.86 percent of taxable payroll and salary that is subject to the Old-Age would go further by allowing to argue that the GOP proposals reduction in immigration of skilled workers tions and Resource Guide. Accred- Mail to: EBRI, 2121 K Street, NW, Suite 600, Washington, DC 20037 Mail to: EBRI, 2121 K Street, NW, Suite 600, Washington, DC 20037 or Fax to: (202) 775-6312 or Fax to: (202) 775-6312 A monthly newsletter from the EBRI Education and Research Fund 16 12 14 6 4 2 10 8 EBRI Notes • April 2002 EBRI Notes • April 2002 EBRI Notes • April 2002 EBRI Notes • April 2002 EBRI Notes • April 2002 EBRI Notes • April 2002 EBRI Notes • April 2002 EBRI Notes • April 2002 EBRI Notes • April 2002 EBRI Notes • April 2002 EBRI Notes • April 2002 EBRI Notes • April 2002 EBRI Notes • April 2002 EBRI Notes • April 2002 EBRI Notes • April 2002 EBRI Notes • April 200213 15 11 9 3 5 7 1 Notes Notes