Spouses & Survivors of Federal Employees: Watch Out For This Loophole

The Pension Rights Center sent a letter to Kathie Ann Whipple, Acting Director, U.S. Office of Personnel Management, urging the agency to notify Civil Service Retirement System (CSRS) employees about the “potential loss of pre-retirement survivor annuities should they leave federal employment and die before applying for retirement benefits”.

This Retirement Cost Could Scramble Your Nest Egg

Nursing Home Care Costs. With annual costs averaging nearly $80,000 a year, this has to be one of the most serious considerations you have to give in planning for your retirement.  Your first thought, and it was mine too, was to say there’s no way I’m going to end up in a nursing home or need home health care.  Well if you haven’t noticed lately, studies confirm that we are living longer.  But remember, living longer doesn’t necessarily equate to living healthier. Take a look at this survey’s finding.

The Case of the Missing 401(k) Matching Contribution

Have you heard? There’s been a disappearing act going on with employer matching 401(k) plans over the last few months. About 2% of large employers have cut or suspended 401(k) matching contributions according to researchers at Hewlitt Associates, Lincolnshire, Ill, and 5% say they plan to do so this year.

Nationwide, companies including Sears, FedEx, Motorola, General Motors, Ford, Eastman Kodak have also have suspended matching contributions.

About 4 percent of U.S. workers have stopped contributing to their 401(k) plans over the past few months, largely in reaction to stock market losses, according to Hewlitt Research.

Nearly 80 percent of U.S. employers provide some sort of employee-contribution match, according to a fall 2008 survey by the Profit Sharing/401(k) Council of America in Chicago. Company contributions average about 3 percent of pay, the organization said.

A $400,000 Lesson in Crossing The t’s And Dotting The i’s

If there ever was a lesson to be learned from last month’s Supreme Court ruling on pension pay-outs, then this is definitely one for the books: Make sure that your designated beneficiary forms are up-to-date on your pension and retirement forms.

The court ruled that DuPont Co. was correct in paying $402,000 to a deceased worker’s ex-wife, Liv Kennedy, even though she had given up her rights to the pension some 22 years ago during their divorce.