Article Abstract:
The Supreme Court refused to honor the appeal for review of plaintiffs who claimed to represent two classes of some 84,000 General Motors Corp (GM) retirees who opted for early retirement between 1974 and 1988. The appeal concerned the decision of the US Court of Appeals for the Sixth Circuit which held that the retirees had no valid claims against GM after the carmaker changed its health care plan to invalidate the retirees' no-cost lifetime health care benefits. The Appeals Court ruled that GM had the right to make the alteration as it had earlier unambiguously reserved the right to change or terminate its health care benefits plan.
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Article Abstract:
A Congressional Budget Office study stated that majority of the baby boomers are likely to attain higher real incomes in retirement than their parents' generation, provided that real wages will continue to grow, private pensions will remain intact and health care costs will not exceed other gains. This is supported by the fact that both real household income and the ratio of household wealth to income surpasses the average for baby boomers ages 25-44 in 1989 than was for young adults of similar age in 1959 and 1962, respectively.
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Article Abstract:
The emerging trend of deferred compensation schemes for corporate directors is increasing. A number of companies use deferred compensation plans to associate directors' compensation with that of their shareholders. Directors benefit from the scheme as directors' fees are deferred into stock investments and are not taxed on the value of the stock units. Moreover, investment returns from the deferred compensation schemes are larger than the traditional compensation packages.
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