said it had no requirement to contribute to its $1.4 billion plan in 2007 or 2008, even though it was underfunded both years and fell $1 billion short of obligations at the end of last year. Macy's plans to contribute $295 million to $370 million to the plan by January, the company said in its annual report. Macy's spokesman Jim Sluzewski said the company aims to keep the plan at least 80 percent funded to avoid required contributions.
Even if a company goes bankrupt, the federal government protects worker benefits through the Pension Benefit Guarantee Corp., which collects premiums from thousands of plans, including more than 200 in Oregon covering a half-million employees.
Last year, the agency took control of Portland-based Pope & Talbot Inc.'s plans when the timber products company liquidated. The agency expects to assume a pension for 500 former employees of Joe's Sports, Outdoor & More, the retailer that went bankrupt in March, spokesman Jeff Speicher said.
Historically, 85 percent of workers whose pensions are assumed by the federal agency get the money owed at termination, Speicher said. Payments assumed this year are guaranteed up to $54,000 a year for 65-year-olds. But highly paid employees and early retirees stand the biggest chance of benefits declines when the feds move in.
The agency has its own problems, with a deficit of $33.5 billion. Outside experts say it can meet existing benefits for years to come. But failures in the U.S. auto industry could stress the insurer even further. No pensions at Nike Many newer companies and banks either never offered or abandoned traditional pensions.
Nike, Oregon's largest publicly traded company, offers profit-sharing and 401(k) plans but no defined-benefit pension.
Intel, the region's largest tech employer, replaced its underfunded pension with a profit-sharing plan in the 1980s, with contributions determined annually by Intel's chief executive. Retirees only receive payments from the pension plan if the balances of their profit-sharing accounts fall below their pension benefit, company officials said.
"Generally, profit sharing has been sufficient," spokesman Chuck Mulloy said.
Given the nation's depleted retirement funds, most workers need to substantially boost their savings, plan on working longer or face a lower standard of living in old age, experts said. One-third of U.S. households own no retirement account, researchers told Congress in April. Seven in 10 households headed by persons aged 55 to 64 had retirement account balances below $100,000 in 2007.
"Don't panic," said Salisbury of the Employee Benefit Research Institute, "but choose to save."
brenthunsberger@news.oregonian.com www.oregonlive.com/itsonlymoney
See related story: Aggressive investing backfires on companies
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