6 5 4 2 3 President’s Report —Dallas L. Salisbury Census Bureau Current Populat • we have 20 underwriters f Consumerism April 30, 2009, VanDerhei in Health Care or the surve and Cr ion Sur y aig Copeland, EBRI senior resear . If vey, March Supplement you would like to see the results of the 2009 RCS, ch associate, made a pres please visit entation New Developments Fall 2009 On Sept. 10, the 2009 RCS Web site. the Census Bureau released the March 2009 Supplement to the Current Population Survey, EBRI Research on Health • at the Spring May 2009 Notes 2009 article, Pension Care Reform “Consum Research Council Conference on “Restructuring Retir er Engagem ent in Health Care: The Use of Lower Cost Sha ement Risk ring”— showing that the nation’s poverty rate went up, income went down, and the uninsured rate remained In June 20 Managem This survey exam 09, EBRI released two ent in a Defined Contributi ined opinions regardin Issue Briefs on World,” sp g the appro on health care that contributed t eaking priate use of lower cost on “The Role of Private Defined Benefit o u shari nderstanding ng as an incentive to of the stable at 15.4 change the way Pension Plans in US Retirem Media Coverage of the 20 percent. EBRI uses this dataset individuals use the heal 09 RCS ent Inco me: th care sy Past, Prese extensively in our w stem nt and Future . ork, and Scenarios.” it forms the basis of our health care reform debate. These briefs generated significant chatter on various blog sites, resulting in at Septem From ber 2009 April 1EBRI Issue Brief 4, 2009, to Sept. 1, on the num 2009, partial tracking found ber of Americans wit the 2 hout 009 RCS m health insurance and sources of entioned in 154 least 600 visit ors to the www.ebri.org site in August 2009. coverage for those who hav newspapers, 39 periodicals, and 13 e health insurance coverag news wires. In ad e (also used in dition, 261 Web-based outlets (such as Chapters 26 and 27 of EBRI’s Health Care Plan Particip Paul Fronstin, director of EBRI’s Healt ant Demographics h Research and Education Program: • “Addressing Health Care Reform Through an Insurance Exchange: Essential Policy Databook MarketWatch on Employee , MSN Money Benefits); the num ) posted hea ber of A dlines and lin mericans partici ks to the surv pating in an em ey on their W ploy eb sites. AP Radio ment-based • • Sept. 16, August 20 Components, 2009, Fronstin ga 09 Notes the Public Pl article, ve a presentat “Health Insurance Coverag an Option, a ion on “Heal nd Other Issues to Consider” th e Reform of Indivi and the Future of Em duals Ages 55–65, 1 —This Issue Brief 994 ploy –20 m exa e0 nt 7-Based m ”— ines retirement income plan (upco featured an interview with Jack VanD ming Issue Brief erhei; ABC Ra and Chapter 10 of dio featured an interview with Craig Copeland. the Databook); and sources of income Health Coverage” to the Portland, OR, EBRI estimates fro issues related to m m the latest Current Populatio anaged competition and the use chapter ofn Su the Western Pension and Ben rv of a ey data sho health insurance exchange for the pur w adults ages 55– efits Conference. 64 were one of pose 2009 has been a busy and eventful year for EBRI. The combination of a new administration, a new for the po A satellite pulation age 55 a media tour sponsored by nd over (Chapters 6, 7, an Principal Financial Group on d 8 of the Databook April 14 ge ). nerated about two dozen two groups—the other was children—most likely to have health insurance coverage in 2007. That • Sept. 15, of addressing cost, quality 2009, Fronstin gave a presentat , and accesis to health car on on “Healthe s Reform ervices. It dis and the Future of Em cusses issues that m ploym ue st be nt-Based Congress, the health reform debate, concern over continued erosion of defined benefit plans, sharp losses TV and radio interviews on the results of the survey. year, 1 addressed wh 2 percent of adults en designing ages 55–64 w an exchange in order to ere uninsured, com reform pared with about the health insu 32 rance market and al percent of adults ages so Health Coverage” to the Seattle, WA, chapter of the Western Pension and Benefits Conference. in defined contribution plans, SEC and DOL review of target-date funds, plan fees, investment advice, Presentations by EBRI Staff 21–24, 26 per examines st cent of those ages 25–34, a ate efforts at health reform nd 23.5 that use an exc percent of all hange. younger adults. There were 4 million • June 10, 2009, Fronstin gave a presentation on “The Future of Employment-Based Health Insurance” and more, have keep our computers humming and the team jumping. Our unique 401(k) and IRA Lump-Sum Distributions The follow are presentations and testi adults ages 55–64 without health insurance in mony by EBRI Staff since A 2007, accounting for 9 percent of pril 2009: the 45 million at the Society of Actuaries Health Spring Meeting. databases continue to grow, and requests from the administration, Congress, and all arms of the media for • “The 2009 Health Confidence Survey: Public Opinion on Health Care Reform Varies; Strong • July 2009, Notes article, “More Detail on Lump-Sum Distributions of Workers Who Left a Job, individuals under age 65 who were uninsured. • special analy May 1, 2009, Fronstin gave a presentati ses are growing apace. on on “Coverage and Access on the Long Road to Reform” Support for Insurance Reform and Public Plan Option, Mixed Response to Tax Cap”—Findings Dallas Salisbury: 2006”— This article examines workers’ decisions to a take a lump-sum distribution—a one-time • Further information on health insurance participation by the nonelderly is in Chapter 26 of the for the American Academy of Dermatology Association. indicate that Americans have already formed strong opinions regarding various aspects of health payment—from an employment-based retirement plan when changing jobs, while remaining in the • Sept. Databook 10, 18, and and by workers in 24, 2009, Salis Chapter 27 bury gave presentations at three N of the Databook. RECA Regional Meetings on Web usage and downloads are at all-time highs, for both www.ebri.org and www.choosetosave.org, with • April 28, 2009, Fronstin gave a presentation on retiree health for Oppenheimer Funds. reform, even before details have been released regarding various key factors. These issues include ® labor force. It builds on earlier, top-line data from the 2004 Survey of Income and Program “What Will Drive the Future of Employee Benefits?” over 135,000 viewers making use of the Ballpark E$timate worksheet for planning their savings in so far health insurance market reform, the availability of a public plan option, mandates on employers TM Participation (SIPP). The study provides estimates of the percentage of workers changing jobs and Retiree Health Care • June 25, 2009, Salisbury testified before the House Committee on Financial Services, Subcommittee in 2009. Savingsman PSAs continue to be aired around the nation. Our new media activities continue Research—Retirement and individuals, subsidized coverage for the low-income population, changes to the tax treatment leaving their assets in their former employers’ plan, compares the standard of living of individuals on Financial Institutions and Consumer Credit hearing on “Improving Consumer Financial Literacy • to expand June 2009 our reach to Notes article, younger age groups. “Savings Needed for Health Expenses in Retirement: An Examination of 401(k) Plans: of job-based health benefits, and regulatory oversight of health care. These opinions may change age 55 or older with that of their early 50s, and assesses how the current near-elderly and elderly have Under the New Regulatory S Persons Age 55 and 65 in 2009” ystem —This .” report updates earlier EBRI research on estimated savings Since April of 2009, EBRI has released three Issue Briefs on 401(k) topics: as details surface, especially as they concern financing options. fared after making a lump-sum decision. • June 24, 2009, Salisbur needed to cover health insuran y participated in a White ce to supplement Medic House town hall meeting on hea are and out-of-pocket expenses for health care lth care reform. Membership has remained strong, allowing us to move through the year on-budget for both revenue and • August 2009, “Individual Account Retirement Plans: Analysis of the 2007 Survey of Consumer expenses. We budgeted operating expenses to excee services in ret • “Capping the irem Tax Exclusion for Employ ent. It finds that men age 65 in ment- d operating re 2009 retiring this based Health Coverage: Implications for venue by year will need any $550,000, in orde where from r to • June 23, 2009, Salisbury moderated a panel discussion for the Divided We Fail Campaign’s Finances, with Market Adjustments to June 2009”—This Issue Brief assesses the current status of Retirement Plan Participant Demographics $68,000–$173,000 in savi Employers and Workers ngs to cover ”—The January 20 health insurance prem 09 Issue Briefiu provide ms and out-of- s further discussion on pocket expenses in maintain all program activities, and to make new investments in systems and systems security required by “Retirement Realities: Examining the Economic Downturn’s Impact on Savings from the Employer Americans' savings for retirement by examining the incidence of individual account plans among • May 2009, Notes article, “Income of the Elderly Population Age 65 and Over, 2007”— In 2007, retirement if they reforming the tax cap optio want a 50–50 chance o ns. f being able to have enough money, and $134,000–$378,000 our expanding databases. Total reserves of nearly and Employee Perspective.” He also moderated the Em $10 million, built up over 30 ployer Perspective panel. years, allowed us the families, as well as the average amount of assets accumulated in these accounts. The 2007 Survey of Social Security continued to be the largest source of income for those currently age 65 and older, flexibilit if the yy t prefer a 90 percent chance. With t o stay focused on mission fulfillment in heir greater longevit spite of the unstable economic environment. y, women will need more: A women • June 11, 2009, Salisbury moderated a panel discussion on “Benefit Trends” for the Chief Human Consumer Finances (SCF), the Federal Reserve Board’s triennial survey of wealth, is the basis for accounting for 38.6 percent of their income on average. Pension and annuity income was 401(k) Plans retiring at age 65 in 2009 w and IRAs ill need anywhere from $98,000–$242,000 in savings to cover health Resource Officer Academy. this study, as it is a leading source of data on Americans’ wealth, provides detailed information on 18.6 percent, income from assets 15.6 percent, and income from earnings was 25.3 percent. insurance premiums and out-of-pocket expenses in retirement for a 50–50 chance of having enough This m • onth, invoices will be distributed for 2010 EB EBRI is at the forefront of database developm RI ent for 401(k) and IRA data. Our first releases membership and ASEC partnership. Your • May 5, 2009, Salisbury participated in a panel discussion for the Prudential Retirement Client retirement plan incidence and account balances among families, and is the latest available. • Further details are available from Chapter 7 of EBRI’s Databook on Employee Benefits. continued support is vital. money from , and $164,000–$450,000 for a 90 percent ch our new IRA and new com Please consider an increas prehensive k/IRA da e in ance. For thos your funding for EBRI, tabases will be issued in the e seeking a median (50 per ASEC, or both, and for months ahead. cent) Advisory Board. • July 2009, “What Does Consistent Participation in 401(k) Plans Generate?”—The annual EBRI/ICI chance of having enough money for health care in retirement, these estimates are about 9 percent our subscription projects like the Retire These unique databases provide first-of-a-kind capabilities with ment Confidence Survey, the Health C multi-y onfidence Survey ear micro data from , and the • May 20, 2009, Salisbury testified before the Senate Special Committee on Aging, at a hearing on 401(k) database update report is based on large cross-sections of 401(k) plan participants. Looking at Public Plan Assets higher than a across providers and em year ago for men and ployers. married couples, and 16 percent higher for single women. Consumer Engagement in Health Care Survey. “The Pension Benefit Guaranty Corporation.” consistent participants in the EBRI/ICI 401(k) database over the eight-year period from 1999 to 2007, • • April 200 Further infor 9, No mation on sources of health in tes article, “Public Pension Plans Asset surance for the elderl Allocations y populati ”—This article reviews actual on is in Chapter 36 of the • April 29, the average 401(k) account 2009, Salisbury testified before the Sena balance increased at an an te Co nual growth r mmittee on Homeland Security ate of 9.5 percent over the period, and public pension plan contribution behavior from 2001 to 2006, pension asset allocations from 2003 to On behalf of Databook. m yCh self and the tea apter 37 serves as a guide to EBRI rese m at EBRI, I extend my grateful appreciation to arch on employment-bas our Mem ed retiree healt bers, whose h • Since October 2008, EBRI has been issuing updates of 401(k) balance estimates as the markets Government Affairs subco to $137,430 at year-end 2007, and mmittee on the the median federal workforce at a hearing on “ 401(k) account balance (half above, half below) The Federal 2007, and the effect that investment performance has on employer contribution volatility. moral and financial co insurance. change, based on Chapters 39–4 mmitm data from ent to our 1 of the the EBRI/I Dat mission and v abook CI 401(k) provide ision contin further infor database, the ues to mm ation on M m oa st co ke all our work mprehen edicare. sive database possible. Your on Government's Role in Em increased at an annual growth rate of 15.2 percen powering Americans to Make Informed Financial Decisions.” t over the period, to $76,946 at year-end 2007. dedication and support are vital to our • Further information on state and local governm ability to continue to “tell it li ent plans is availab ke le in it is” with “just the facts.” And I Chapter 19 of the Databook. 401(k) plan participants yet assembled. Click here for more information by release date. • • June 2009 April 28, 2009, Salisbury , Notes article, “Many gave a present 401(k) Sponsors Sus ation on “Thep Im ending pact of the Recent Financial Crisis on Matching Contributions Also Fund ® thank the many others with whom we work. American Savings Education Council and Choose to Save 401(k) Account Balances” Defined Benefit Pension Plfor Wachovia Retirement Services. ans” —A review by EBRI of 251 401(k) plan sponsors that have ® Media Coverage of EBRI’s “401(k) Balances and Changes Due to Market Volatility” Updates: Research —Health Care For an update on the activities of ASEC and Choose to Save, please see the Spring 2009 ASEC suspended 401(k) matching contributions for their 4.4 million workers finds that those employing 50 • April 16, 2009, Salisbury participated in a staff briefing for the Senate HELP Committee on “How From October 1, 2008, to August 31, 2009, partial tracking found EBRI’s “401(k) Balances and Health Care Reform percent of the workers also maintained a Workers Are Offered Health Coverage Throug n open h defined benefit plan the Voluntary Emplo . An additio yer-sponsor naed S l 16 percent of ystem, The Chairman’s Report. Changes” updates mentioned in 37 newspapers, 44 periodicals, and five news wires. In addition, See above, EBRI Research on Health Care Reform, under “New Developments,” for further details. workers were with employers that were still obligated to fund a frozen defined benefit plan. Further, Facts about the System and The Challenges Facing Employers of All Sizes.” 25 Web-based outlets (such as MarketWatch, MSN Money) posted headlines and links to the 8 percent of the workers were with an employer that had both an open and a frozen defined benefit • April 7, 2009, Salisbury participated in a panel discussion for Barclays Global Investors on Health Confidence Survey EBRI page on their Web sites. The infor mation was used in a July 2009 GAO report, Private plan that carried funding obligations. “Restoring Confidence: Saving the Future of Retirement.” Dallas Salisbury Pensions: Alternative Approaches Could Address Retirement Risks Faced by Workers but Pose In June 2009, EBRI released the results of the 2009 Health Confidence Survey. See EBRI Research on • May 2009, “Plan Demographics, Participants’ Saving Behavior, and Target-Date Fund Investments” President & CEO Trade-offs. GAO summary, and full report (the full report is 77 pages long). Health Care Reform (above), under “New Developments,” for further details. —This analysis explores (1) whether plan demographic characteristics would affect individual Jack VanDerhei, EBRI research director: EBRI participant contribution rates and target-date fund investments and (2) equity glide paths for • Sept. 23, 2009, VanDerhei participated in an ICI workshop on “Enhancing Understanding of Target • Media Coverage of the 20 In August 2009, EBRI released data on IRA pl 09 HCS an balances for mid-June 2009, see “Research— participants in relation to plan demographics by considering target replacement income and its Retirement Date Funds.” From Retirement” (below) for details. June 11, 2009, to September 1, 2009, partial tracking found the 2009 HCS mentioned in 87 success rate. • Sept. 17, 2009, VanDerhei testified before the ERISA Advisory Council hearing on “Approaches for _____________________________________________________________________________________ Web-based outlets (such as MarketWatch, MSN Money) posted headlines and links on their Web • Chapter 13 of EBRI’s Databook on Employee Benefits functions as a guide to additional EBRI Retirement Security in the U.S.” ASEC Partners Meeting Oct. 21, 2009, will be at AARP’s Brickfield Center. You can register online. For more sites. In addition, 1 newsweekly, 10 periodicals, and 11 newspapers wrote articles utilizing the 2009 • Target-Date funds have received a great deal of attention due to their performance in the financial research on 401(k) plans. • Aug. 10, 2009, VanDerhei participated in an ISCEBS annual symposium, “What Will Happen to information, e-mail mcdonnell@asec.org HCS. crisis. EBRI has released two Issue Briefs on target-date funds (see “Research—Retirement,” Retirement Income for 401(k) Participants After the Market Decline?” below) and EBRI Research Director Jack VanDerhei testified on the issue before a joint hearing Retirement Confidence Survey EBRI Policy Forum #65, Dec. 10, 2009, will be at the Kaiser Family Foundation. For more information, e-mail • June 18, 2009, VanDerhei testified before the joint DOL/SEC hearing on target-date funds. of the Department of Labor and Securities and Exchange Commission (see “Presentations by Planning f willis@ebri.o or t rgh e RCS 2010 is under way. The first meeting of the review committee will be Oct. 21, • May 20, 2009, VanDerhei made a presentation at the President's Economic Recovery Advisory Board EBRI Staff— Jack VanDerhei,” below). 2009. The survey will be fielded in January 2010 and results will be released next spring. As of Sept. 4, Retirement and Savings Working Group.