Private Pensions: Improving Worker Coverage and Benefits	 
(09-APR-02, GAO-02-225).					 
								 
Private pensions help assure that workers receive adequate	 
incomes in retirement by supplementing Social Security. Although 
an important source of retirement income for many workers,	 
millions of others have no individual pension coverage. Since the
1970s, only half of the nation's workers have been covered by	 
private employer sponsored pensions, and currently, only 52	 
percent of retirees receive pension income. Traditional reforms  
to the voluntary, single-employer-based pension system have	 
limited potential to expand pension coverage and improve benefits
for workers who traditionally lack pensions. Reforms have focused
mainly on improving tax incentives and reducing the burden of	 
pension regulation on small employers. Many proposals attempt to 
affect pension coverage and benefits by modifying the framework  
of rules governing pensions. However, the intended modifications 
of some pension rules may be counteracted by employers and	 
workers responses. Further, efforts to increase retirement saving
by restricting workers' ability to receive and use lump sum	 
distributions could limit participation and contributions to the 
plans. Three categories of reform--pooled employer reforms,	 
universal access reforms, and universal participation reforms are
outside the voluntary, single-employer-private pension system.	 
Pooled employer reforms increase the number of firms offering	 
pension coverage through centralized third-party administration  
and increase employee pension portability. Universal access	 
reforms increase retirement savings by providing an opportunity  
to save through a payroll based account without mandating an	 
employer contribution. Universal participation reforms ensure	 
coverage and retirement income for all workers by mandating	 
pension availability and participation, similar to the existing  
Social Security system. 					 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-02-225 					        
    ACCNO:   A02893						        
  TITLE:     Private Pensions: Improving Worker Coverage and Benefits 
     DATE:   04/09/2002 
  SUBJECT:   Employee benefit plans				 
	     Federal social security programs			 
	     Income maintenance programs			 
	     Retirement pensions				 
	     Employee retirement plans				 
	     Medicare Program					 
	     Social Security Program				 
	     Supplemental Security Income Program		 
	     Earned Income Tax Credit