Data & Research September 21, 2012

Access to Retirement Plans Varies in Private Sector

Nearly two-thirds of private-industry workers had access to some form of retirement plan, according to data from the U.S. Bureau of Labor Statistics (BLS). 
Reported by

Access to retirement plans varied significantly by major occupational group, full- or part-time status, bargaining status and wage category. Management, professional and related occupations had nearly twice the access rate and more than three times the participation rate of service occupations. (Some examples of service occupations are health care support, protective service, food preparation, maintenance and personal care workers.)   

Similarly, full-time workers had nearly twice the access rate and three times the participation rate of part-time workers. Union workers showed very high access (92%) and participation (85%) rates for retirement plans.  

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High-wage workers (those in the top 25% of all wage earners, with earnings at or above $24.81 per hour) had significantly higher rates of access and participation in retirement plans than those of low-wage workers (those in the lowest 25% of all wage earners, with earnings at or below $10.69 per hour). High-wage workers had access rates of 85% and participation rates of 75%. In other words, 89% of the high-wage workers who were eligible for retirement benefits participated in the plan (known as the take-up rate), a significantly higher share than the take-up rate of 45% for low-wage workers.   

Workers in large establishments (500 workers or more) had a retirement participation rate that was more than twice that of workers in small establishments (less than 100 workers). In addition, the take-up rate for workers in large establishments was 20 percentage points higher than the rate for workers in small establishments.  

The BLS’ “Beyond the Numbers” report also provides an overview of medical and paid leave benefits for private-industry workers.  

The report is here.

Products September 21, 2012

NY Life Rolls Out Income Plus Variable Annuity

New York Life launched Income Plus, a variable annuity designed to meet the needs of pre-retiree Baby Boomers who seek a guaranteed future lifetime income stream amid volatile markets.
Reported by

The New York Life Income Plus Variable Annuity is a long-term investment that provides consumers the opportunity for tax-deferred savings, a variety of investment options to pursue market growth, access to their savings and future protection for beneficiaries through a death benefit.

First, a consumer purchases a deferred income stream that starts from two to 40 years in the future. Between the purchase date and the income date, consumers can invest in a selection of mutual funds and benefit from potential equity growth. If the value of their investment account grows to exceed what is needed to fund their future income stream, participants can take the surplus as additional income or use it as they wish. The guaranteed future income payments cannot decrease from poor equity investment performance.

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Income Plus also includes a free Income Benefit Rider, enabling clients to use their money in the annuity to purchase guaranteed lifetime income streams that begin when they want them to, but does not provide the minimum level of guarantee at purchase.

The optional Guaranteed Future Income Benefit Rider provides a minimum level of guaranteed lifetime income payments, which can be increased if markets perform well. The rider is available for an annual cost and can only be purchased with a single premium amount at the time of application.

More information is available here .

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