This data shows that most people who have access to a

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This data shows that most people who have access to a DB plan participate in it, although there are still some people missing out. We can also see that union-membership and governmental employment increase access to a DB plan exponentially. Employee Access to DC Plans The chart above is also from the BLS study in 2016. It shows employee access to defined contribution plans at work. We see a similar pattern as we did with the DB plans with a few notable standouts. Larger civilian employers are still more likely to offer a DC plan, but small employers have greatly increased employee access and governmental employers have substantially decreased access. Full-time employees
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still have the advantage over part-timers, but union employers have lost their edge relative to non-union employees. One troubling trend is the much higher percentage of people who have access to a DC plan but fail to participate. Don't let this be you! We will likely see a shift in some of the governmental sector in the future. Many municipalities and school districts are waking up to the reality that they over-promised in terms of retiree benefits. Their collective weak funded status is a testament to this fact. Some jurisdictions have already begun the task of converting DB plans into cash balance plans and then installing a new plan like a 401(k) or an MPPP. This trend will likely become more pronounced and more needed as plan assets will be even more challenged by the next market disruption and retirees continue to live a long time while drawing benefits. Q: Which group(s) has (have) the highest level of access to defined benefit plans? (select all that apply) A: a unionized workforce & government employees Q: Considering firm size, in which group are you most likely to have defined benefit coverage in the civilian workforce? A: 500+ employees Q: Full-time employees who have access to a defined contribution plan at work are more likely to participate in the plan than are part-time employees. Which statement below is correct relatvie to the preceding sentence? A: Yes, this is correct. Full-time employees are more likely to participate in plans to which they have access than are part-time employees For the full-time employees in the civilian workforce, we see approximatley 71.64% (48%/67%) of the people who could participate doing so. The parcentage for part-time employees is 51.61% (16%/31%). Planning Needs of Female Clients Regrettably, the specific needs of female clients are sometimes overlooked. According to the Institute for Women’s Policy Research, women’s average pay is 76.5% of men’s average pay. Low pay means lower ability to save for retirement unless they are married, in which case they may have increased ability due to the factor of combined incomes. Lower pay may also mean lower contributions to their retirement savings accounts.
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  • Spring '14
  • VOSS,JAMESA
  • Cash balance plan

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