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Show E2 The Salt Lake Tribune Friday, June 4, 1999 CENTERPIECE CONSUMER CORNER . BUSINESS Pension Plans Shrink as Boomers Gray “SVAILE! FP) Experts blamefederal regulators. Employerstendto boost pay instead ofretirement funds WASHINGTON re The lowdown in contributions TODAY WASHINGTON baby bes longe Thepopular but the antibiotic Provan ts too dangerous The nation’s 7 expect to live long nits than pre and into the 1990s has been in small cmplo; like defined benefit pensions: Reruuse of the 150 percent ceiling. some Jarge craployers with well-funded plans, such as rs terminated their ct, \nother legal constraint on companies us ing traditional pension plans is that tax laws limit how much e: utive cory be susideredto $160,000. And the funded in 1991, according to Intern rage pay in thelast three sulling firm Watson W: million Amesicans are enrolled — on the con nterested in the plan offered rank and servative assumptions made by federal regu lators. They continue to estimate kers eturn on assets of less than 6 percent dest » federal policies are shortsighted, said Patiick Mefeague, a Topsham, Maine, attorney who has represented worker groups When workers lose their jobs because of a mill closing or when anelectric utility spins ) bie-digit returns recorded by many pension stronger steps against food-borne plan investment managers in recent years Employers also share some of the account bacteria TheCenters for Disea e Control report said the amerare strain of ability. A 1998 surveyof1.200 public, private and nonprofit employers by the consulting bacteria that caus ed the outbreak erage of 5.25 percentof their p: off a subsidiary. companyadministrative expenses but not So cial Security taxes — was down from 7 1 per pitment hearing. “The employer, if properly motivated, can reach an accommodation with cent in 1997 and 67 percent in 1993.94 employeesin difficult times. That's because. pension experts say. many employers areputting their payroll priorities pounds of hot dogs and lunch meats in December. the largest on items that employees appreciate With increasing life spans and more peopleintheir 50s andlate 40s preparing for more. such ashigher pay and health benefits But on balance, said Sylvester Schieber meat recall ever. retirement, you just can't beat a plan that will provide you a guaranteed incomefor therest your life,” said Martha Patterson, director vice president of Watson Wyatt's research MardaIssues Warning About 1999 Miatas liter engines. carmaker said. Owners should take their vehi- cles to an authorized dealer for re- during downturns whenprofits may be down companies by law must make extra payments within a reasonable amount of if their plans are underfunded pair. Ifa free remedyisn’t received sions have the backing of the fede ment. If theplan's sponsor goes belly up, the pension is federally insured up to $36,614 in share of Comstock. With about $215 million in assets, Comstock hasfive branches in Reno, Sparks and Carson City. First Security is the largest Utah-based bank and among the largest in the West 0 Ski Utah has resdesigned its Web site at www.skiutah.com. For the first time, information about summer events and activities will beavailable. Ski Utah is a trade organization that promotes Utah’s ski resorts and related industries. oO Jomega Corp.of Roy has rede annual benefil signed its www.iomega.com Web ployee Retivement Securily Act was passed. It storage devices are now ableto be That insurance dates to 1974. when the Em- fablished the Pension Benefit, Guaranty Corp. to oversee heaithy nlaand. assume stewardship of plans thal fail. After 24 years. the PBGC manages 2.665 failed plans and mails monthly payments to 209,000 pension By 2006. the agency calculates, defined benefit plans will have moreretirees than ac. site. The company’s portable data purchaseddirectly from thesite u Astore in Layton at 1020 North Main Street has become a Big Kmart store. The new format in cludes greater amounts of food items, oO tive workers. In part. that’s because the num ber of plans have plummeted. But also, fewer workersintheir 20s and 30sarebeing hiredin old-line industries, such as manufacturing and transportation, where these plans are concentrated “Clearly the system is stagnant,” acknowl edged avidStrauss, executive director of the PBGC, The current problem with defined benefit pensions isn't setting off alarmbells because Wapinski's Inc. of Salt Lake Cily has become an Amazon.com associated company. This allows Internetusers to order any of Ama- zon.com’s book or compact disctitles from Wapinski’s wapinski.net at the same price oO Galaxy Enterprises Inc. of 0 754 E. Technology Ave The pe is an operator of an electronic mall and provides Internet-related services. The newfacilities are located in a business com could be wiped out by poorinvest — can makethedifference between a defined benefit plans if laws and regulations softwareprovider Novell Inc. retirement spent enjoying life and one bor. deringon subsistenceliving and expensive to manage, many experts in government and privateindustry agree cnployer-offered retirement plan. And a growing number — more than two regulated,” said Mar! oretz, president of the ERISA Industry Committee representing check and personal savings, traditional pensions — created by an earlier and morecau- tious genevation who had learned that a life ployers from keepingtheir plans well funded income for retirees andtheir spouses continues until death, evenif retirement stretches past age 100 Like Social Security, defined ber Security common stock for each Orem ie movedits corporateof When added to a monthly Social Security Most workers — nearlysix in 10 — have no When business is booming. companies are handcuffed from bolstering their plans, but investmenis perform. And that fixed monthly Reno, Nev. Under the termsof the agreement, Comstock shareholders will receive 0.675 shares of First benefits. Nor is the federal government about to be saddledwith the bill anytime soon In fact. the PBGC has beenin the black the last three years and has a $5 billion cushion to weather thenext recession. office of KPMG Some experts believe that has had the unin tendedside effect of discouraging many em \ damaged harness maycause a short circuit to occur, resulting in a blown fuse anda stalled engine, the All savings are pnt into one investment pool, and retirees are promiseda certain ben efit regardless of how well or poorly those First Security Corp. of Sait LakeCity has completedits acqui sition of Comstock Bancorp of pensioners are not in danger oflosing their mployeebenefits policy in the Washington center, “I think the slowdown in contributions during thelatter part of the 1980s andinto the 1990s has been in response tu public policy initiatives Congress, lookingfor tax revenue, declared in 1986 that pensions cannot be funded at more than 150 percent of their obligations. Mazda has issued a warning about 1999 Mazda Miatas with 1.8 be noted These excess funds provide a safety valve.” McTeague said at a recent Labor De- tirementcosts. That figure — which includes million ess pension funds used tu enhance early retirement benefits, he firm KPMG found they wereallocating an ay- was foundin packages of Bil Mar hot dogs madeat theZeeland plant It said the bacteria was likely pres ent inthe plant five months before theoutbreak began years, whichever is less As a result, many employers haveset up separate deferred compensation andstock option plans for executives. who then become Many experts blame continuing shortfalls in funding these plans — in which some 42 DETROIT. Mich. — A federal in ation ¢an maximum innual pension is $130,000, or 100 percent of nue Service data analyzedby the benefits con vestigation of a fuod poisoning out breakthat left 15 dead concludes the source was hot dogs from a Bil Mar meat plant, and recommends General Electric, have taken so called contribution holidays,” not putting more money into plans becausethey are at the limit to 16 perc that still is slight! more than the 15 percent that were Hot Dogs Blamed in FoodPoisoning Cases 15 FRENTE And while the percents plans has de 50 percent in 1946 skesman Lawrence Bachorik petition carefully recalled Pension researcher The number of defined benefit plans which guarantee monthly payments for life dropped by move than half from 101.7 52 in 1991 to ut 44.000 last year, as mainly said the FDA would consider the Mar But Washington currentlyis filled withtalk of overhanling Social Security toincludeindi vidual retirement accounts. The current So cial Security systemis, in somerespects,alot are not fully funding them reported among Trovan users haustedin their twilight years Chances are small that more workers will be Sylvester Schieber economic goodtimes. Employers art ingtu establish pension plans for their work ers. and many companies that have such plans While most recovered after stopthe antibiotic, five patients prudently manage lest their income is ex vases regulatory burdens. ip fact itis Shrinkingdes drug despite evidence it could harmpatients’ livers. Since February 1998, 140 cases of serious liver damage haye been count that offer lumpsumsthat workers must offereda traditional pension anytimesoon un less Congress and the While House takes a surprising turn and improves tax breaks and responseto public policy “G. initiatives.” safety net ue traditional define dd hene fitbe sion plansis not growing to meet their on the market, a consumer ‘'y groupcontended in a pe lition filed Thursdaythat accuses the government of approving the Bil during the latter part of the 1980s million s Group Petitions FDA For Ban on Trovan out of 10 — will rely only on employer-sponsored planslike a 401(k) or thrift-sayings ac- Employers might increasetheir support for werenotsorestrictive, complex to administer Wethink they[plans] are probably mis- 125 of the largest companies in the United States. time. call Mazdaat (800) plex owned by networking Qo EFI Electronics Corp. of Salt LakeCityhas reported a netloss of 00 or 13 cents per share on revenueof $13.9 million forthe fis- cal year ending March 31. That comparestoa net loss of $246,000, or 5 cents per share, on revenue of $16.4 million forfiscal 1998. DILBERT DOGBERT CONSULTS (NEXT) ( sPRa THIS TEFLONS”) | ON YOUR BODY TO BETTER IGNORE THE | INPUT OF YOUR if : \SUBORDINATES.]| Ad 8E a0 Gg wl ©. ~ ; (Q andits abundanceof recreational opportunities. “It’s not a hard sell, but you do havetosell it Reilley said But he said Utah is not right for somepeople. The statealso has to tle. The shortage is nationwide And Utah does take some selling for people who have never been here said Reiley of Novell cent The task has gotten easier in re. years Novell touts Utah's quality of life. its cost of «TATED PRESS LOS ANGELES Times Mir chairman, president and (hO Mark H (Saves ca WELL \ \ YOUR SHORT LIST J) OF DREAM CARS UT CMa nate ¥ (4, with such technology The abundance of informa tion-technology companies in those cities means more career opportunities In Silicon Valley. there'sa say ing you don't have to change parking lots and you can change jobs,” Genereaux said Utah is hometo its share of in formation technology companies Novell is in resurgence. Intel Corp. plans to build what could be afuture r esearch center, Evans & Sutherland is prospering. And such companies as Tenfold Em ware and Powerquest areonthe THE NEW JAGUAR STYPE FROM$42,500" rise ‘The downsideof that is it means more competition among Utah companies And, in all likelihood the laws of supply and demand will favor people with technology skills for years lo come In the short term, going to ¢ hange thal is THE JAGUAR XK8 CONVERTIBLE FROM $70,750" nothing is going to be very significant Genereaux said living Kathryn Downing New Publisher Ofthe L.A. Times Hk WHAT YOU SHAKE 3s centers as Austin, Boston or Seat @ Continued from E-1 (Gono CARES) TIME, :|] @EFORE 2)| USING ay ‘|_ = compete 2] $ cE EL 7a Head-Hunt Driving Up Utah Tech Wages =|] MOE I RR WD ENA SY APR NCATIPONANRAT Intermountain Power Agency Notice of Redemption of Power Supply Revenu » Refunding Bonds, AY July 12001 CUSIP SUH LOST IY 2021, CUSIP 151097 W238 CUSIP Ne. F588 LOK SEY 1989 Series LORY Series A Mui TOBY Series AY THE JAC FROM$55 200° Willes relinquished the job of Angeles Times pub lisher on Thursday and promoted Times executive Kathryn M Downing to the post Downing, 46, retains her cur nt titles of president and chief itive officer of the Times Wiles, 57, who addedthe pub: lisher s job to his responsibilities in 1997, said he was giving up the post just as plans to improve cir ulation and financial perfor mance were bearing uit He said the Times y as on tr k to boost circulation and to increase oper The new ar S:TYPE joinsthe distinguis d family of ‘RUT Like the Jaguar XK8 and XJ8, it offers seductive styling uperb performance and rich Connolly leather Which le aves you with a pleasing dilemma How do you just one? THE BLENDING 0f ART and MACHINE ling profils, which have declined for five consecutive quarters Downing jcjoined Times Mirror in 1995 as president and chief ex ecutive ufficer of Mosby Matthew Bender. a legal and medical pub: lishing unit that Times Mirror sold last year Shp wax named ficer t and chier executive of. f the Times in March 1998. State KEN GARFI JAGUAR Salt Lake City, UT (801) 29 Street | |
