Posts Tagged "worker"

Wanted: Workers without College Degrees

The PBS NewsHour has some terrific reporting on an important topic: the job market for the two-thirds of working-age adults who don’t have a college degree.

The problem facing many of them is that, despite their hard work, they will earn much less over their lifetimes than college graduates. In stories for the NewsHour, Paul Solman highlights the opportunities available to workers without degrees at a time that many employers are scrambling to find smart, energetic people to fill good-paying jobs with benefits in light manufacturing and the skilled trades.

Women of color are catching on and entering fields like carpentry and plumbing – in fact, they are over-represented in the trades. But Solman talked to employers early this year who cannot find enough young adults willing to consider working in the trades.

This new NewsHour video (above) features IBM, which has to compete for employees with flashy firms like Apple and Google. IBM created an internship program to train people like Reinaldo Rodriguez for “new-collar jobs” that don’t require a bachelor’s degree. The former supervisor for a drug store chain that cut his pay after he was promoted now works in an IBM electronics lab.

Opportunities like these pay enough for people to support their families. And they are a great alternative to borrowing a lot of money for a bachelor’s degree that won’t necessarily guarantee a job. …Learn More

Silhouette of a detective with glasses

$4 Billion in Pension Payments Returned

It’s the employer’s responsibility to find former employees and keep them apprised of any retirement benefits they left behind.

But that hasn’t always worked out. Some employers don’t have former workers’ current contact information, and others don’t bother to track them down. Worst-case scenarios are often fallout from a merger: the company being acquired has kept shoddy pension plan records and the acquirer doesn’t update them.  Some companies have even deleted a participant’s name from the records.

Tyler Compton, an attorney with the Pension Action Center, which connects workers with lost pensions and 401(k) savings plans, said people frequently contact a former employer because they think they might have a plan. But if the worker is told he’s not in the records, he might drop the matter, she said.

The U.S. Department of Labor decided several years ago that employers’ efforts weren’t good enough. The department’s Employee Benefits Security Administration (EBSA) began investigating the problem and pushing companies to improve their methods for finding workers who had quit or been laid off but were owed pension benefits or had savings sitting in an old 401(k).

EBSA has gotten results. Since 2017, more than $4 billion in past due defined benefit pension payments have been returned to millions of plan participants.

By making clear what is expected of employers, regulators “put a lot of pressure, in a good sense, on plan administrators to really up their games,” Jeffrey Holdvogt, a legal partner with McDermott Will & Emery, said in a recent webinar hosted by the Pension Action Center at the University of Massachusetts, Boston. …Learn More

Family under an umbrella

5 Million Families Caught in an ACA Glitch

The states’ health insurance marketplaces will sell subsidized family policies to workers who have employer coverage on one condition: their employer premiums are deemed unaffordable.

But this condition has a quirk. Under the Affordable Care Act (ACA), a worker is eligible to buy a subsidized family plan only if he can’t afford his employer’s premiums for an individual policy, defined in the law as exceeding 9.83 percent of his income. Policymakers argue this is the wrong standard, because the ineligible worker needs a family policy, and employers’ family policies usually have much higher premiums than their individual policies.

The Kaiser Family Foundation estimates some 5.1 million workers are in this predicament, which is known as the “family glitch.”

The majority of workers who are not eligible for the ACA’s family coverage are buying the policies at work, and they spend an average of 16 percent of their income on premiums, Kaiser said. The people who can’t afford the employer insurance are forced to go without.

Tina Marie Mueller’s family is caught in the family glitch. She recently wrote in Health Affairs that her husband pays $1,500 per month for employer health insurance for the family, including their two children. “So, after paying for our family insurance, my husband brings home $400/wk,” Mueller said. “We are beyond frustrated that this part of the ACA hasn’t been fixed.”

The COVID relief package passed in March did temporarily expand access to the exchanges for more middle-class Americans by dramatically increasing the premium subsidies. But “people in the family glitch will still not be helped,” said Krutika Amin, a health care expert at the Kaiser Foundation. …Learn More

Teacher teaching a class

Smaller Pensions Don’t Spur More Saving

Most state and local governments provide their employees with traditional pensions, which are nice to have. But not all pensions are equally generous.

The monthly benefits vary from one place to the next, and some governments have cut costs by reducing pensions for their newest hires. Further, one in four public-sector workers aren’t currently covered by Social Security, because their employers never joined the system.

A logical back-up plan for these workers would be to contribute money to the supplemental savings plans that most public-sector employers provide. When the workers retire, they can add the money saved in their accounts – a 401(k), 401(a), 457 or 403(b) – to their pension benefits.

But researchers at the Center for Retirement Research (CRR) find that workers are only slightly more likely to participate in a savings plan if they work for government employers with less generous pensions – a criterion based on how much of the worker’s current income will be replaced by the pension after they retire.

This lackluster response may not be surprising. Workers can see what’s deducted from their paychecks every week but don’t necessarily understand how these deductions – combined with their employer’s contributions – will translate to a pension.

Public-sector workers are probably more aware of whether their employers are part of the Social Security system. But apparently workers don’t consider that either. …Learn More

Grocery Store worker

Disabilities and the Toll of Irregular Hours

Irregular hours, last-minute schedule changes, and rotating shifts are now a fixture of the work world.

This isn’t necessarily a bad thing. Gig economy workers often tout the appeal of having the freedom to set a schedule that suits their lifestyle. In reality, many workers with unpredictable schedules, notably in retail and in lower-paid and part-time jobs, do not determine when they work. Their schedules are set by their employers.

These jobs can be hard for anyone to juggle. Arranging childcare on an irregular schedule is a good example. But workers with disabilities face unique challenges, because they often need special arrangements, such as a caretaker to help them get ready for work or an accessible van to transport them.

This would suggest that it’s important to work for employers who give them predictable schedules. In fact, a new study of workers in their 20s and early 30s with disabilities found they more often have irregular schedules than the young adults who do not have disabilities.

Here are some of their specific findings. A larger share of the workers with disabilities told the U.S. Census their work hours varied, and their hours swung more widely from week to week than people without disabilities. Consistent with this, young adult workers with disabilities reported in a second survey – the National Longitudinal Survey of Youth – that they are less likely to have regular schedules.

They are also more likely to have jobs with rotating shifts – an employer might assign the 5 a.m.-1 p.m. shift one day and the 1 p.m.-9 p.m. shift the next. Further, rotating shifts have become more common in recent decades, the researchers found. …Learn More