RCSSCI 220 Chapter Notes - Chapter 15: Employee Retirement Income Security Act, Gender Inequality, Price Controls
Document Summary
Pension policy and income inequality in the 21st century . 1959: poverty rate for 65+ was 35% That number dropped to 30% by 1974. Pension plans and lower restrictions on pension vesting helped. In a world of changing social security and medicare, pensions may once again be a relevant tool to discuss. Private pensions in the us in 1900 were relatively non existent (railroads) Post depression, roosevelt appointed a committee who crafted social security. Tax hike and benefit cut in 1983. The elderly living just off of social security will be living at or near the poverty line. Meant as a supplement to private pensions and other savings. Pensions were often tilted to favor employers. Long time commitments until a vested payout. People were fired soon before they would qualify for the pension. Increased number of private pensions and the number of participants. Overfunding plans was inadvertently encouraged as was the ability for corporations to lean on the pbgc.
