12/04/2014 – A Strategy for Pensions at Risk of Extinction (The New York Times)

Dec 08, 2014 Comments Off by

When people are old, should governments guarantee they have incomes? In the 19th century — 125 years ago — Germany became the first country to answer yes to that question, adopting an old-age pension system at the behest of Chancellor Otto von Bismarck.

That concept spread to the United States in the 20th century. Eighty years ago, President Franklin D. Roosevelt appointed a Committee on Economic Security, whose proposals led, a year later, to establishment of the Social Security system.Forty years ago, President Gerald Ford signed the Employee Retirement Income Security Act, which enshrined the concept that pension promises were sacred. Companies could change, or even eliminate, pension plans, but workers were entitled to the benefits they had already earned. A government agency was set up to guarantee that pensions would be paid even if the sponsoring company went broke.

Read the full article at The New York Times.

 

Financial Security 2014

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