The Rhode Island Pension Reform Background There are over a million residents living in Rhode Island between the ages of 21 to 65. The majority of the Rhode Island population is not employed by the state nor does an individual concern oneself with state issues (Randazzo, 2013). The Employee Retirement System of Rhode Island (ERSRI) was originated to cover state employees and teacher’s retirement, disability, survivor, and death benefits (Randazzo, 2013). In 1987 and 1989, the State Police Retirement Benefits Trust and the Judicial Retirement Benefits Trust were established (Randazzo, 2013). All pension plans in Rhode Island are managed by the state and the funds are commingled for investment purposes in determining the actuarial value …show more content…
The twelve-member board consisted of 2 Community Business Representatives, 5 Union Officials, 3 researchers, Rhode Island Department of Administration director and the Mayor of Cranston (Randazzo, 2013). The Advisory Board purpose was to gather information and generate a report for the General Assembly special hearing (Randazzo, 2013). The board met consistently for two months to review solutions to the pension crisis and actively listen to the public, pensioners, and state workers for feedback on ways to resolve the ERSRI problems (Randazzo, 2013). All meetings were publicized for transparency and board members used the opportunity to educate the public on the new retirement reform bill through radio and television broadcasts (Randazzo, 2013). EngageRI, a nonprofit organization was invited to join the board to assist with implementing an all-inclusive pension reform resolution and advocate to the General Assembly (Randazzo, 2013). The combined house and Senate Finance Committee held four meetings that included 30 hours of public testimony (Randazzo, 2013). Enough information was collected to recommend the current retirement reform bill. Governor Chafee and Treasurer Raimondo introduced legislation of the new retirement bill to the house and the Senate. The changes are (Randazzo, 2013): • How the
As you approach age of 60, it’s time to take benefit of your life long hard work in terms of pension benefits. First, you need to decide at what age you would like to begin your CPP pension benefits. As this decision will impact your total pension benefits for the rest of your life, caution is advised. This article will help you to understand when the best age is to being your Canada Pension Plan (CPP) benefits.
Despite the fact that PEPRA develops new levels of both safety and –non-safety employees with lower benefits, PEPRA’s pension benefits changes do not cover most of the employees. According to Nava and Christensen (2015), following the implementation of PEPRA, most of the public employees in California were promised health coverage for life, which is one of the major components of other post-employment benefits (17). Nevertheless, the state and local governments have no strategy and are not setting the funds required to cover the future obligations aside. A report by Tatum (2014) assessed the financials of 690 post-employment benefits (OPEB) plans in California and found an unfunded pensioner health care liability that amounts to $157.7 billion. The pensioner health care system was part of Governor Brown’s 12-point pension reform plan but was not included in PEPRA (Halper & York, 2012).
The Massachusetts model is considered by many to be the blueprint for the national health care reform. It was introduced in the year 2006 and was fully implemented by 2010. The state previously had a “free care” pool through which it funded the health care given to people who were uninsured and ineligible for Medicare, Medicaid and private health insurance. The then federal government insisted that either the state reduced this funding or it lost $385 million in Medicare funds (Lizza, 2011, June 6). The uninsured population in the state at that time was 10.9%, which was much less than the national average of 15.8% (Day & Nardin, 2011) making the state relatively more suitable for any health
The Sears Canada situation has put the former and current employees at the risk of not getting their full pensions and other benefits paid as promised by the company. This problem was raised due to the underfunding of the pension plan by the company. this deficit has but over 16,000 former and current Sears Canada employees at risk of not getting their full pensions. (MacDonald, 2017) This is due to the pensioner not having any priority’s when a company goes through their bankruptcy process. In order to help those who are affected by this, the government should take actions towards protecting and preserving the pension of the employees. The help of the government would help reduce other problems that will arise due to employees not getting their full pension. Such problems that would arise are; the burden on taxpayers to pay for the loss of the employees and how it is unfair and unethical for the employees to suffer from the company’s faults.
Due to variations in state public policy, several different independent variables will be used to examine the extent to which states have enrolled Medicaid recipients in managed care. The elderly and disabled require skilled nursing care, which has proven very expensive. Since the Boren Amendment, interpreted by the Supreme Court, refused to allow states to freeze their reimbursement rates to nursing homes and hospitals, states have seen the cost of long-term care rise rapidly. As the Baby Boom generation ages, it is expected
Riordan’s top retirement plan is 401(k) savings plans with the one goal in mind, helping an employee retire, (Martocchio, 2009).
For the jurisdiction of British Columbia, the Registered Pension Plan member contributions are due within thirty days after the end of the month in which the deductions occurred. In practice, there may be agreements with pension administrators that require earlier and/or more frequent remittances. The monies withheld from the employee and the employer contributions must be held in trust prior to remittance. The Registered Pension Plan types would be either a Defined Benefit Plan or a Defined Contribution Plan.
The first policy change, abolishing the actuarial reduction, would tend to lower the average retirement age. The actuarial reduction is intended to make workers approximately indifferent between
The Central States Pension Fund is faced a serious problem, because of the financial crisis, they can not pay for the retirees pension as much as in the past, which means the Fund don't have enough money to pay all of it. There are two choice they can make: One, if the Fund continues to pay for retirement pension at current rate, the project of company will out of money and end in 2025. And if this happen, the Fund would not be able to pay the pension for retirees and that would impact 407,000 retirees. The another one choice is the Fund cuts approximately 23% pension, that would have 50% percent of chance can let the company remain operation for 30 years. Fortunately, that would not influence the future retirees' pension, but would have a negatively impact of current retirees.
For an extended period, state and local policymakers and labor unions ignored as the growing public pension obligations became an increasingly fiscal burden. The pension problem was enormous and associated with irresponsible financial practices connected to defined benefit pension plans (Thompson, 1980). Following this, the state of California and its local government have a problem of unfunded public pension liabilities that was estimated to be around $583 billion. Because of this, as Lu and Otto (2003) claim, several cities in the state have had a difficult duty of balancing budgets in a balanced way to the public employees and taxpayers, while continuing to provide public services to the
On August 17, 2006 the Pension Protection Act of 2006 (the Act) was signed into law. The Pension Protection Act ("PPA") [P.L. 109-280] originated as a single-employer defined benefit pension funding reform bill to strengthen the DB pension system. However, it is best known for the number of provisions to enhance 401(k) and 403(k) plans, especially the auto enrollment feature. Among other noteworthy provisions are those intended to remove legal obstacles to, and create new incentives for, automatic enrollment 401(k) and 403(b) plans. It represents one of the most comprehensive pension reform legislation since ERISA was enacted in 1974. The Act has lead to many companies changing the way their plans are designed and administered, amend plan documents, increase plan funding, and make additional plan disclosures in regulatory filings and to plan participants. The Act made many sweeping changes but for the sake of brevity, only the automatic enrollment plan made by employers on the behalf of its employees is addressed in this report as to the rationale behind the passage of the PPA. Even though the provisions generally apply both to 401(k) and 403(b) plans, for explanatory purposes all references will refer only to 401(k) plans.
The years 1996 to 1997 brought about another wave of health care reform for Massachusetts. The expansions in 1996 and 1997 resulted in an increase in the number of people enrolled in MassHealth (Massachusetts Medicaid program). As well, one of the key elements of Massachusetts’s safety net is
The organization that I have decided to research is the U.S. Department of Agriculture, human resource management policies and procedures. The Department of Food and Safety agency is responsible for the nation’s poultry, meat and eggs. Therefor this agency recruits veterinaries, human resources specialist, contract specialist, administrative officer, and public health analyst. This paper will analyze the retirement the federal government. The federal government retirement policy needs to be changed. The federal government has two types of retirement plans, the Federal Employees Retirement System (FERS) which went into effect in 1986 and the Civil Service Retirement Act which went into effect in 1920. The Civil Service Retirement Act
The Nobel Peace Prize recipient, Kofi Annan, once said, “We may have different religions, different languages, different colored skin, but we only belong to one human race”. When someone is given advantages or disadvantages because of their skin color, that is racial inequality. African Americans have a disadvantage when it comes to police, jobs, and even education. It is not right for people to be treated different just because of their skin color. America has not yet received racial equality, even after hundreds of years.
Unlike Thailand, Indonesia and Vietnam, the Philippines have a relatively complicated benefit calculation. Replacement rates were too high for non-high earners, up to 78.1% for an average earner, therefore not achieving the pension goal of providing old-age financial security. Learning from the Philippines, we see that actuarial valuations need to be done every few years to review the sustainability of the pension fund and