Don't Count on It!: Why Your Pension May Be in Jeopardy-- And How to Protect Yourself

Predicting a worse disaster than the S&L debacle, Barron's Weekly editorial-page editor Donlan (Supertech) charges that lax government regulations during the last decade have allowed employers to loot pension funds, thereby threatening the retirement security of millions of Americans, especially baby boomers. The author cites examples of such abuses as forced early retirements and executives taking huge, lump-sum retirement benefits; the latter drains the funds needed for salaried workers' pensions, which are based on percentages and years worked-losses only partially covered or not covered at all-by federal insurance. To avoid catastrophe, Donlan advocates, among other measures, that ``voluntary'' pension plans receive contributions from employers as well as employees. He also recommends that workers postpone retirement and inform themselves about company plans. ``Run your own savings plan,'' he further counsels-including, for example, IRAs. His is good advice. (Oct.)