A legislative tax package with several retirement savings ideas promoted in both the House and Senate was introduced late Monday by House Republicans. One part of the 297-page tax package is the proposed Retirement, Savings and Other Tax Relief Act of 2018. It builds on the Family Savings Act passed by the House in September and incorporates several provisions from the Senate's proposed Retirement Enhancement and Savings Act of 2018, which has not been voted on. A House version [...]
About CORPaTHThis author has not yet filled in any details.
So far CORPaTH has created 984 blog entries.
The number of Americans retiring daily has nearly doubled since the year 2000. Currently, roughly 10,000 people turn 65 each day, the standard age for retirement, according to a Deutsche Bank note published Tuesday. And according to Census forecasts, that number is set to rise. It will reach nearly 12,000 people within the next 10 years. By 2030, according to the Census Bureau, all baby boomers will be older than 65. The growth in retiring baby boomers will have [...]
Lawmakers on Capitol Hill are considering a multibillion-dollar bailout for retirees who are members of certain collapsing pension plans, The Washington Post reported Tuesday. The proposal, a draft of which was obtained by the Post, would require the Treasury Department to spend as much as $3 billion annually to subsidize payments for retirees enrolled in designated pensions. The bailout is one of several proposals under consideration by a special congressional committee wrestling the pension crisis. Lawmakers are also considering solutions such as new [...]
In the midst of financial literacy month, what does member education look like in a defined benefit world where members don’t have to actively make investment choices? And how much do members need to understand about investments? While financial literacy is important, DB plans allow members to prepare for retirement without being financial experts themselves, says Derek Dobson, chief executive officer of the Colleges of Applied Arts and Technology pension plan. But member education in the DB space is [...]
For the first time since the Financial Services Commission of Ontario began monitoring defined benefit pension solvency in 2009, the province’s DB plans posted a median solvency ratio above 100 per cent in the third quarter of 2018. As of Sept. 30, the solvency ratio reached 101 per cent, up from 97 per cent the previous quarter. The FSCO attributed the improved status mainly to the reduced liabilities stemming from higher long-term Canadian bond yields. Conversely, Canadian equities suffered from the uncertainty surrounding [...]
As a long-time pension fund board member representing trade unions and pensioners, I have been active in the field of responsible investment by pension funds since the nineties. I firmly believe that PRI has played and must play an important role in mainstreaming responsible investing for institutional investors. This is especially the case for pension funds, as they play such an important role in generating benefits for an aging population. As responsible investment continues to move towards mainstream acceptance, [...]
The funded status of the 100 largest corporate defined benefit pension plans rose to 94.5% during September from 93.3% at the end of August, its highest level in a decade, according to consulting firm Milliman. The latest data from the Milliman 100 Pension Funding Index (PFI) shows that the pension plans experienced a $21 billion increase in funding as a result of an increase in the benchmark corporate bond interest rates used to value pension liabilities. The last time [...]
Critical and declining multiemployer pension plans are not likely to recover without help from Congress, a study released Tuesday by Segal Consulting concluded. Critical and declining plans classified as being in the red zone are projected to be insolvent, generally within the next 20 years, putting participants, including retirees, at risk of reduced benefits. Segal Consulting analyzed red-zone multiemployer plans over the past 10 years, and found that for plans that were in the red zone in 2010, there [...]
When you're in your 20s, retirement can seem impossibly far away. Investing for something that's some 40 years in the future may feel a bit like taking scarce resources that you need right now, and locking them away for a time that might never come. And even it if will, there's no need to start planning for it today. Later will be fine. Of course, older people know different. They recognize (often with regret over having failed to take [...]
A strong US equity market and rising bond yields helped boost the funded status of Canadian defined benefit pension plans to levels not seen in nearly two decades, according to reports from consulting firm Mercer and professional services firm Aon. At the end of the third quarter, the solvency position of Canadian defined benefit pension plans climbed to 112%, up from 107% at the end of the previous quarter—its highest level since November 2000, according to the Mercer Pension Health Index, [...]