LABOR AND EMPLOYMENT LAW SECTION Discusses Pension Issues

Abstract

At the New Orleans meeting, the Labor and Employment Law Section sponsored a Symposium session on “New Issues on Growing Older: Pensions as Part of the Contract of Employment.” Papers were delivered by Lorraine Schmall (Northern Illinois University), Susan Stabile (St. John’s University) and Charles Jeszeck (U.S. General Accounting Office[GAO]). Commentary was provided by Howard Wial (U.S. GAO) and Howard Shapiro (McCalla, Thompson, Pyburn Hymowitz & Shapiro, LLP). Each of the three papers addressed a different type of pension plan. Schmall focused on retirement incentives typically arising in the context of traditional defined benefit pension plans, plans which promise employers a specific annual pension benefit based on a pre-determined formula. Stabile addressed defined contribution plans, plans in which participants have individual accounts to which contributions are made, with the ultimate pension benefit based on contributions to and investments returns on the account Jeszeck spoke about cash balan plans, a hybrid plan in the sen that although it legally is a defined benefit plan (and like a defined benefit plan uses a formula to determine pension benefits), it contains features resembling a defined contribution plan.