New Pension Proposal Gives Pension Benefits To Part-Time Employees

Pension Expert Explains How Proposal Would Help Part-Time Employees Make Ends Meet

PLAINVIEW , NY (MMD Newswire) May 11, 2010 -- As of April 2010, 18.9% of the U.S. workforce was unemployed or working part-time but still looking for full-time work. Many part-time workers are having trouble paying their bills as their part-time job doesn't pay well. However Congress has proposed new legislation that may help part-time employees pay their bills. The proposed legislation will mandate that part-time employees be covered under corporate pension and 401k plans.

Brett Goldstein, a Plainview, New York-based pension administrator and President of The Pension Department, Inc., states, that The Retirement Fairness Act would require companies to include part-time employees in the discrimination testing.

Current law requires that at least 70% of the employees must receive pension or 401k benefits to pass the discrimination testing. Employees who do not work at least 1,000 hours during the year or 20 hours per week are not included in the discrimination testing under current law. Under the proposed legislation, part-time employees would no longer be excluded from the discrimination testing. If the 401k or pension plan fails the discrimination testing, part-time employees would have to get pension or 401k benefits to keep the plan compliant.

"This will be a great help to those part-time employees who need money to pay their bills," says Goldstein. "Part-time employees may be able to borrow against their new pension benefits allowing them to stay current with their lenders. The downside to this legislation is that small business owners and self-employed people don't have the cash flow to offer part time employee's 401k benefits or pension benefits. The proposal also makes drastic changes to certain types of pension and 401k designs, which wont be good for small business owners. If this proposed legislation is passed, small business owners may close their 401ks or significantly reduce retirement benefits. Even the American Society of Pension Professionals and Actuaries thinks that this proposal could result in the termination of many 401k plans and they have written letters opposing this proposal."

CREDENTIALS: Brett Goldstein is a pension administrator and President of The Pension Department, Inc., a consultancy based in Plainview, New York. He is a speaker and media personality who specializes in providing businesses and individuals with affordable retirement planning solutions. Goldstein's timely advice and tips have been featured on Fox Business, the New York Daily News, The Chicago Tribune, Newsday, National Public Radio, MSNBC.com, Kiplingers, and many more. Investment services are offered exclusively through: Cadaret, Grant & Co., Inc. Member FINRA/SIPC.

AVAILABILITY: Greater New York City area; nationwide by arrangement via telephone; available for interviews in print or broadcast.

Contact:
Brett Goldstein
This e-mail address is being protected from spambots. You need JavaScript enabled to view it or This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Phone: (516) 346-2999 or cell 516-314-3289

###