Louisiana Retirement Funds Increase in Value

Louisiana’s four state retirement systems are heading into the new year with a better outlook for 2010 than they were in 2009. While the systems started out 2009 with losses, retirement investments gained in value throughout the year.

The two largest Louisiana retirement systems - those for state government employees and schoolteachers – enjoyed 14 percent in returns over the first five months of the new fiscal year, which started July 1.

Working Seniors in British Columbia, Canada

In October 2009, 11.35 percent of British Columbians 65 years old and over were in the workforce, either with a job or looking for work. In January 2001, that number was at an all time low of 3.78 percent. In June 2008, at the start of the recent economic turmoil, participation was 10.38 per cent.

For those slightly younger, in the 60 to 64 age category, labor-force participation went from 35.2 per cent in December 1999 to 54.63 per cent this past October.

Senior Investments 

Total investable assets for retail investors ages 55 to 70 are expected to grow to $24.2 trillion by 2012, up from $9.1 trillion in 2008.

Air Force Webinar

The U.S. Air Force Personnel Center has launched a series of Web conferences, Webinars, designed to provide retirement-eligible Airmen the information they need to submit their retirement applications.

According to the Air Force Retirement Procedures Manager: "We designed these Webinars to better serve our customers and enable more direct communication between the members and AFPC."

There are four Webinars held on a rotating basis the second Thursday of every month.: Retirements-101, for enlisted members; Retirements-101, for officers; Navigating the virtual MPF to submit a retirement application; and "I'm approved for retirement -- Now what?" They consist of a 30 to 45 minute briefing followed by a question and answer period. Subject-matter experts will stay on the line until all questions have been answered.

The upcoming schedule is as follows:

• Jan. 14, 2010 -- "I'm approved for retirement -- Now what?"
• Feb. 11, 2010 -- "Retirements-101, for enlisted members"
• March 11, 2010 -- "Retirements-101, for officers"
• April 8, 2010 -- "Navigating the virtual MPF to submit a retirement application"

Members may view the Webinars using Defense Connect Online (DCO).To attend these Webinars live follow the link on AFPC's secure "Ask" site. Once the live session is complete, members can view recorded Webinars as long as they have a DCO account. There is a link to the DCO Web site on the page.

MassMutual Leaving the Retirement Business?

In 2005, Massachusetts Mutual Life Insurance Co. (MassMutual) became one of the first insurance companies to announce formally that it was building a business designed to target investors near or at retirement. Its retirement product was based on a mutual fund wrap program with an immediate-income-annuity option.

Now, almost five years after entering the retirement income market, the firm has shut down the division devoted to the retirement business. According to experts, MassMutual’s product was both ahead of its time and too difficult to understand.

Executives from the firm say they are not backing off from the retirement income market  but are merely changing course.

Lack of Retirement Savings

According to an annual poll conducted by the Royal Bank of Canada, 32 per cent of Canadians in 2009 said they hadn't started saving for retirement in contrast to 24 per cent in 2008.

Canadian Retirement Post-2020

By 2020, 425,000 Canadians will be retiring annually, according to Canada's Urban Futures Institute.

Early Retirement at the University of Alberta

The University of Alberta (Canada) is offering early retirement incentives to experienced employees in a bid to trim an anticipated $59-million deficit in its spring budget. The offer is being made to all workers who will be 55 or older as of July 31 next year and who have at least 10 years of steady employment at the institution.

The university has been trying to find ways to cut costs since August,

Retirement Q and A

The Wichita Falls (Texas) Times Record News recently published a Q & A about retirement. Here are some of the highlights.

“Question: How much can I earn and still get Social Security retirement benefits?

“Answer: Starting with the month you reach your full retirement age, you will get your full benefits with no limit on your earnings. Social Security uses the formulas below, based on your age, to determine how much your benefit may be reduced:* If you are under your full retirement age: when you start getting your Social Security payments, $1 in benefits will be deducted for each $2 you earn above the annual limit. For 2010, that limit is $14,160. The earliest age you can receive Social Security retirement benefits remains 62, even though the full retirement age is rising.* In the year you reach your full retirement age: $1 in benefits will be deducted for each $3 you earn above a different limit, but only counting earnings before the month you reach full retirement age. For 2010, this limit is $37,680.

“Keep in mind that although your benefits may be reduced due to earnings, you may receive a higher benefit later. After you reach full retirement age, we will recalculate your benefit amount to give you credit for any months in which you did not receive a benefit because of your earnings. In addition, as long as you continue to work and receive benefits, we will check your record every year to see whether the additional earnings will increase your monthly benefit. Find out your full retirement age at www.socialsecurity.gov/pubs/ageincrease.htm. Learn more by reading our publication, How Work Affects Your Benefits, at www.socialsecurity.gov/pubs/10069.html.

“Question: Do I have to pay income tax on my Social Security benefits?

“Answer: You will have to pay federal taxes on your benefits if you file an individual federal tax return and your total income is more than $25,000. If you file a joint return, you will have to pay taxes if you and your spouse have a total income that is more than $32,000. For more information, call the Internal Revenue Service toll-free at 1-800-829-3676 (TTY 1-800-829-4059) and ask for IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits, available online at www.irs.gov/publications/p915/index.html.

“Question: How much is my benefit reduced if I begin drawing checks before my full retirement age?

“Answer: Social Security has published a fact sheet called When To Start Receiving Retirement Benefits …. [It is] online at www.socialsecurity.gov/pubs/10147.html.

“As most workers know, your choice of a retirement age - from 62 to 70 - can dramatically affect your monthly Social Security benefit amount.

“If you choose to start receiving benefits early, the monthly payments will be reduced based on the number of months you receive benefits before you reach your full retirement age. The rate of reduction will depend on the year you were born. The maximum reduction at age 62 will be:* 25 percent for people born between 1947 and 1958.* 30 percent for people born after 1959.

“If you wait until your full retirement age, your benefits will not be reduced. And if you should choose to delay retirement, your benefit will increase up to eight percent a year from your full retirement age until age 70. However, there is no additional benefit increase after you reach age 70, even if you continue to delay taking benefits.”