Retirement Plan

WASHINGTON -- More than 1 of every 3 workers at retirement age in the 2050s will have nothing saved in a 401(k)-style account, according to a government study released yesterday. On average, workers born in 1990 will save enough to replace about 22 percent of pre-retirement income, or $18,784 per year in 2007 dollars, according to the Government Accounting Office. "Today's workers will more likely struggle to make ends meet during retirement than previous generations," said Democratic Rep. George Miller of California, who had requested the report.

NEW YORK -- If you need a retirement investment, should it be a life insurance policy -- even if you don't need the insurance?Cash-value life insurance is being widely sold today as the best way of building up money for the future. It's often called a "private pension plan." The insurer pays interest or dividends on the cash that accumulates in your policy. Those payments build up tax-sheltered.There are, as you might suspect, some risks to this plan that the agent may or may not explain.

County police officers are rushing to cash in on their retirement benefits before proposed changes in their pensions can take effect, stripping the department of some of its most experienced officers.Since June, when County Executive John G. Gary proposed sweeping changes in Anne Arundel's pension system, 15 corporals, one sergeant and one lieutenant, all with 20 or more years of experience, have retired, according to police spokesman Sgt. Jeff Kelley.That is more than twice the seven officers that retired during the same period last year, although much fewer than the 54 who retired between June and September of 1992, when the 20-year retirement plan was introduced.

More than a year after questions arose publicly about the state of Baltimore Behavioral Health Inc.'s retirement plan, the financial company that oversaw the plan has gone on record as saying that the West Pratt Street mental health clinic all but stopped making contributions after Sept. 2009. An official with the Lincoln National Life Insurance Co. made the statement in an affidavit late last month. It was filed in federal court by the attorney for employees who allege in a lawsuit that BBH executives “diverted and stole” money intended for their retirement plans.

In an effort to attract and retain government workers, the Carroll commissioners are considering a proposal that would enhance the county's 401(k) retirement plan. "I am especially concerned about people at the lower end of the pay scale, who may not have much money to invest," said Commissioner Donald I. Dell. "These improvements would broaden their options." Under the proposal, Carroll employees would be able to contribute to the 401(k) retirement immediately, and would be eligible to receive the maximum match in county dollars after three years.

Crofton's town manager proposed a budget last night that allows for promotions and other bonuses for the community's employees without increasing the property tax rate of 28 cents per $1,000 of assessed valuation.But the budget would raise spending by 7 percent and exceed the special tax district's 5 percent cap on budget increases.The board of the Crofton Civic Association must either cut the proposal to get it under the cap or call a special town meeting to override that restriction.Crofton officials tried to pass a budget that exceeded the 5 percent cap in January.

The prospects of allowing Howard County police officers and firefighters to retire after 20 years on the job grew even more remote last night, but a legal battle is growing more likely.The County Council's Republican majority -- long skeptical of the 20-year retirement that the county negotiated with county police and firefighters -- spoke not a word at a council work session on the issue last night."Some things are not worth saying," Councilman Darrel E. Drown, an Ellicott City Republican, said after the meeting.

At an age when many workers are thinking about winding down their careers, Victoria Baldassano of Silver Spring says she can't afford to give retirement a thought. The part-time English professor at Montgomery College said her income has been too low for too long to save for retirement, and she's carrying about $40,000 in credit card debt racked up to pay living expenses. "It's an awkward situation to be in at 61," said Baldassano, who said she thinks more about day-to-day bills than retirement.

Five county residents are being sought to serve as members of the Pension Oversight Commission, overseeing management of the county's new employee retirement system, county officials announced last week.Commission members will serve five-year terms.Applicants should be knowledgeable about pension administration and funding but should have no connection with the county government or businesses involved with the county and state retirement systems.In April, 987 county employees switched from the current state ++ retirement plan to a new county plan.

THE BOARD responsible for managing the federal government's retirement plan will oppose the addition of a real estate investment fund because it would cost too much and duplicate other investments in the plan's portfolio, the agency announced this week. In testimony submitted to a congressional subcommittee Tuesday, the board's executive director, Gary A. Amelio, said that the Thrift Savings Plan already holds $1.1 billion in real estate investment trusts, called REITs, making it the nation's 13th-largest investor in such funds.