The Report of the President’s Cabinet Committee on Private Pension Plan Regulation: An Appraisal
The growth of private employee pension plans in the American economy is astonishing. From 1953 to the end of 1964, the accumulation of assets of private pension funds has grown from 16.9 billion dollars to 75 billion dollars, with a projected accumulation of 225 billion dollars by 1980. At present, private retirement plans cover approximately 25 million workers, which is one-half of all employees in private non-farm establishments. Moreover, unions increasingly stress both the creation of pension plans where none exist and increased benefits from current plans. Thus, during the recent United Auto Workers negotiations the union sought and received extensive increases in benefit payments. Finally, unions are also attempting to establish pooled joint retirement funds where smaller companies are involved, thereby permitting employers who previously could not afford to maintain funds to provide pension benefits for their employees.