Despite playing a central role in many public and private employees' retirements, defined benefit pension plans are woefully underfunded. Moreover, the combination of a Baby Boomer retirement bulge and a struggling economy are putting even more pressure on defined benefit plans. This Note examines relevant background information regarding defined benefit pension plans and demographic data of the Baby Boomer generation. This Note then explores how and to what extent states and private employers have created contractual obligations through defined benefit plans and addresses what happens when those contractual obligations are breached. Finally, this Note suggests that litigation cannot provide a complete solution to pension under-funding and instead discusses and evaluates some of the options public and private pension systems have to combat potential disaster. This Note recommends linking retirement ages to average life expectancies and enforcing actuarial reductions based on early retirements as especially effective measures in combating the financial burden of Baby Boomer retirements [ABSTRACT FROM AUTHOR] Copyright of Chicago Kent Law Review is the property of Chicago Kent Law Review and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
Defined (Yet Uncertain) Benefit Pension Plans in America,
Chi.-Kent. L. Rev.
Available at: http://scholarship.kentlaw.iit.edu/cklawreview/vol87/iss1/9