Retirement Heist

198 companies maintained they could receive the subsidy: Ellen E. Schultz and Theo Francis, “U.S. Drug Subsidy Benefits Employers,” The Wall Street Journal, January 4, 2004.

204 shift the risk to the PBGC: For a detailed look at the most prominent instances of companies passing the buck to the PBGC, see Fran Hawthorn, Pension Dumping: The Reasons, the Wreckage, the Stakes for Wall Street (New York: Bloomberg, 2008), and articles by Mary Williams Walsh of The New York Times, who has also provided extensive coverage of the fate of pension plans in bankruptcies, particularly at automakers and airlines.

206 Many excellent books have been written: Among them: Teresa Ghilarducci, When I’m Sixty-four: The Plot Against Pensions and the Plan to Save Them (Princeton: Princeton University Press, 2008); Karen Ferguson and Kate Blackwell, Pensions in Crisis: Why the System Is Failing America and How You Can Protect Your Future (New York: Arcade Publishing, 1995). This lucid and readable book focuses on pensions, but it has an excellent discussion of the problems with 401(k)s and other defined contribution plans, and it clearly explains “discrimination” rules. Recent reports on 401(k)s include The Failure of the 401(k), a report by Robert Hiltonsmith, a policy analyst at Demos, November 2010: http://www.demos.org/pubs/thefailureofthe401(k).pdf. See also Private Pensions: Some Key Features Lead to an Uneven Distribution of Benefits, GAO-11-333, March 2011, http://www.gao.gov/new.items/d11333.pdf. The Congressional Research Service has done a number of studies on 401(k)s, including 401(k) Plans and Retirement Savings: Issues for Congress, July 2009. Its reports can be found on the CRS Web site: http://www.pensionrights.org/report-topic-areas/defined-contribution-plans-such-401ks-and-iras.

209 reducing borrowing costs by as much as 40 percent: Analysis by Theo Francis; Ellen E. Schultz and Theo Francis, “Companies’ Hot Tax Break: 401(k)s—Why Firms Stuff Plans with Stock,” The Wall Street Journal, February 11, 2002.

210 fifty million workers lost a total of at least $1 trillion in their 401(k)s: Center on Retirement Research, Boston College.

210 D’Andrea, forty-eight, cashed out her account: Author interview.

210 one-quarter of top executives at major U.S. companies had gains: Analysis by Tom McGinty, based on Compustat data; Ellen E. Schultz and Tom McGinty, “Executives Enjoy ‘Sure Thing’ Retirement Plans, The Wall Street Journal, December 16, 2009.

211 “executives in fixed plans were happier than hogs”: Bob Nienaber, director, benefit RFP, Sacramento, California, telephone conversation with author.

214 In the public plan sector: For a history and analysis of how public plans can become seriously underfunded, see Roger Lowenstein, While America Aged: How Pension Debts Ruined General Motors, Stopped the NYC Subways, Bankrupted San Diego, and Loom as the Next Financial Crisis (New York: Penguin Press, 2008). See also Mary Williams Walsh’s extensive coverage of public pensions in The New York Times.

Index

A

AARP

accounting issues

health plans and

investing pension assets and

pension income and

see also Financial Accounting Standards Board

ACF Industries

Ackerman, Chuck

Actuarial Sciences Associates (ASA)

Advantage Medical Services (AMS)

Aetna

Aging Diagnostic

Air Transportation Stabilization Board

Alcatel SA

Allied-Signal

Alltel Corp.

Amara, Janice

Amegy Bank

American Benefits Council

American Council of Life Insurers

American Electric Power

American Greetings

American National Can

American Society of Pension Actuaries

Amoco Corp.

Aon Corp.

Archer, Bill

Asarco

AT&T

excess pension assets of

health care reform and

Lucent and

pension cutting at

prescription drug benefits at

Automatic enrollment

B

Bankers Life and Casualty

Bank of America

BOLI at

bank-owned life insurance (BOLI)

banks

Beisler, Randy

Bell Atlantic Corp.

benefits test

Bert Bell/Pete Rozelle NFL Player Retirement Plan