Abstract

Pension Plans on Thin Ice
Prisendorf, Anthony | February 6, 1967 issue

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Private pension plans — those set up by employers for their personnel are meant to be a vital element in achieving the right to a meaningful retirement. The $6 billion that corporations contribute annually to various plans is tax-deductible as a business expense, a concession granted by the government to stimulate the continued growth of plans. Employees who receive retirement benefits do not pay taxes on them until they begin to draw them, usually when their incomes and consequently their tax rates are lower. The basic flaw of these plans is that they do not afford those covered adequate protection against the loss of their accrued benefits.

See Also:

PENSIONS; RETIREMENT; TAXATION; COMPENSATION management; EMPLOYEE fringe benefits; EMPLOYEES
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