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The 2014 Pension 40: Teresa Ghilarducci

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Teresa Ghilarducci
Labor Economist
New School for Social Research
PNR

“Work is not retirement.” That’s the refrain of Teresa Ghilarducci, 57, a labor economist and economic policy professor at New York’s New School for Social Research, whose approach to pension reform debunks the notion that retirees are not facing a crisis as long as they still work. “The reality is it’s just not practical to have a retirement policy based on work,” says the author of the recently published When I’m Sixty-Four: The Plot Against Pensions and the Plan to Save Them. Instead, Ghilarducci recommends a mandatory pension on top of Social Security benefits. Several states, including California, Maryland and Minnesota, have adopted her approach, and she is advocating for a similar system at the federal level. In her ideal solution every worker would be required to contribute 5 percent over and above Social Security into a private guaranteed retirement account. “The approach of encouraging people to voluntarily save more is definitely not working,” she says. The plan has received some bipartisan support. Republicans like a private sector solution, whereas Democrats favor its contribution to retirement income security. Both sides, however, also have reasons to hate the idea: Democrats don’t like private solutions, and Ghilarducci believes Republicans want older people to work longer. Still, she believes her idea has “a really good chance.”

The 2014 Pension 40

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Bruce Rauner
Illinois
John and
Laura Arnold

Laura and John
Arnold Foundation
Randi Weingarten
American Federation of Teachers
Rahm Emanuel
Chicago
David Boies
Boies, Schiller & Flexner
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Randy DeFrehn
National Coordinating Committee for Multiemployer Plans
Damon Silvers
AFL-CIO
Laurence Fink
BlackRock
Chris Christie
New Jersey
Robin Diamonte
United Technologies Corp.
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Ted Eliopoulos
California Public Employees’ Retirement System
John Kline
Minnesota
J. Mark Iwry
U.S. Treasury Department
Gina Raimondo
Rhode Island
Phyllis Borzi
U.S. Labor Department
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Orrin Hatch
Utah
Abigail Johnson
Fidelity Investments
Ted Wheeler
Oregon
Caitlin Long
Morgan Stanley
James Hoffa
International Brotherhood of Teamsters
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Amy Kessler
Prudential Financial
Alejandro
García Padilla

Puerto Rico
Christopher Klein
U.S. Bankruptcy Court for the Eastern District of Caifornia
Steven Rhodes
Bankruptcy Court for the Eastern District of Michigan
Kevin de León
California
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David Draine
Pew Charitable Trusts
Jordan Marks
National Public Pension Coalition
Sam Liccardo
California
Joshua Rauh
Stanford Graduate School of Business
Karen Ferguson and Karen Friedman
Pension Rights Center
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Timothy Blake
Moody’s Investors Service
Kathleen Kennedy Townsend
Center for Retirement Initiatives, Georgetown University
Edward (Ted) Siedle
Benchmark Financial Services
Daniel Loeb
Third Point
Judy Mares
Employee Benefits Security Administration, U.S. Labor Department
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Andrew Biggs
American Enterprise Institute
Andy Stern
Columbia University
Kenneth Mehlman
KKR & Co.
Teresa Ghilarducci
New School for Social Research
A. Melissa Moye
U.S. Treasury Department


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