29 02, 2024

A good time for pensions: Why the time is ripe for a secure future

2024-02-29T16:20:43-08:00February 29th, 2024|Categories: Defined Benefit Plans|Tags: , |

Source: National Public Pension Coalition In the years following the Great Recession of 2007-2009, billionaire-backed opponents of defined-benefit pensions presented a reasonably straightforward case. The financial crisis sent equities tumbling, funding ratios of pension plans cratered, and it was easy for opponents of public employees to spread doom and gloom about pension plans. To make matters worse, pension opponents often deliberately sowed envy among non-pension recipients. At the NPPC, we believe everyone deserves a stable retirement. It’s a false [...]

27 02, 2024

Americans want pension plans, worry about retirement security – NIRS

2024-02-27T15:07:05-08:00February 27th, 2024|Categories: Retirement|Tags: , |

By Rob Kozlowski Source: Pensions & Investments National anxiety about retirement security continues to grow, and the vast majority of Americas believe all workers should have a pension plan, according to a new report from the National Institute for Retirement Security. According to the report, 79% of respondents to a national public opinion poll of working-age Americans believe that the nation faces a retirement crisis, up from 67% that expressed that sentiment in 2020, the last time NIRS conducted [...]

14 02, 2024

Faced with recruiting crisis, Alaska mulls reopening of 2 pension plans

2024-02-14T10:02:21-08:00February 14th, 2024|Categories: Pension Funding|Tags: , |

By Rob Kozlowski Source: Pensions & Investments Nearly two decades after the Alaska Legislature closed the state's two defined benefit plans for public employees and teachers, the state is closer than ever to reopening those plans as it faces a recruitment and retention crisis for general employees, teachers and public safety officials. While the bill has passed the Alaska Senate, expectations are muted regarding its chances in the conservative-controlled House of Representatives due to concerns about costs, although an [...]

21 11, 2023

IBM to end 401(k) match, offer a ‘hybrid pension’: Will other employers follow suit?

2023-12-15T10:56:33-08:00November 21st, 2023|Categories: Pension Funding|Tags: , , , |

By Kristen Beckman Source: Benefits Pro IBM, once a leader in the shift away from defined benefit plans to defined contribution plans in the United States beginning in 1984, is now heading in a new direction with its retirement savings benefit for employees. Many industry observers wonder if other employers will follow IBM’s lead again. IBM notified employees earlier this month that it will suspend its 401(k) match and 1% automatic contribution as of Jan. 1 and will instead [...]

7 06, 2023

NIRS to hold webinar on Alaska’s experience moving public employees from pensions to defined contribution plans

2023-06-07T13:00:40-07:00June 7th, 2023|Categories: Retirement|Tags: , , |

Source: National Institute on Retirement Security Please join us for a webinar on Monday, June 12, 2023, at 2:00 PM ET, Alaska's Experience Moving Public Employees from Pensions to Defined Contribution Plans. Click here to register. In 2005, Alaska closed its two statewide defined benefit pension plans for teachers and public employees. Since July 1, 2006, all new Alaska hires participate in a defined contribution plan rather than a pension plan. The retirement plan change has had the unintended [...]

24 04, 2023

JP Morgan Analysis Says Corporate Defined Benefit Pension Plans Deserve A Fresh Look

2023-05-24T15:19:37-07:00April 24th, 2023|Categories: Defined Benefit Plans|Tags: , |

By Dan Doonan Source: Forbes Since the Great Resignation in 2021 when employees across industries quit their jobs in large numbers, private sector employers have begun revisiting their benefit offerings to align with current employee preferences. As cited in a recent JP Morgan Asset Management report, “Pension Defrost: Is it Time to reopen DB pension plans- or at least stop closing and freezing them?,” 40 percent of private sector employees who separated from their employer during the Great Resignation [...]

29 06, 2022

Pensions & Retirement Security

2022-06-29T16:18:32-07:00June 29th, 2022|Categories: Retirement|Tags: , |

Source: National Education Association All educators deserve the ability to retire with financial security. Pensions provide educators with a guaranteed, reliable source of income in retirement. They are also a tool to attract and retain qualified, experienced educators to the profession. Schools and students succeed when talented young people in search of a challenging career are recruited into the profession, and stay in it for the long term. Pensions help do that. Pensions provide excellent retirement security. A traditional pension [...]

7 02, 2022

City of San Diego Will Retroactively Replace Thousands of Employees’ DC Plans With Pensions

2022-02-07T15:57:10-08:00February 7th, 2022|Categories: Defined Benefit Plans|Tags: , |

By Anna Gordon Source: AI-CIO.com The city of San Diego will be offering retroactive defined benefit (DB) pension plans to thousands of city employees who were previously only offered defined contribution (DC) 401(k)-style plans. The decision comes after the California Supreme Court overturned 2012’s Proposition B, a law that was passed after being voted on by the public. Proposition B shifted all city employees except police officers away from pensions to DC plans. The law was in effect from [...]

20 01, 2022

Pension plans cheaper overall than 401(k)s, researchers find

2022-01-20T10:47:21-08:00January 20th, 2022|Categories: 401(k), Defined Benefit Plans|Tags: , |

By Emile Hallez Source: Investment News A pension research group has a message for employers: The switch from defined-benefit plans to 401(k)s has made retirement saving more expensive. That conclusion takes into account the costs borne by both employers and employees. Switching to a defined-contribution plan can of course save companies money, but the overall cost of the benefit increases, according to the National Institute on Retirement Security. The nonprofit this month published its third iteration of a paper [...]

18 08, 2021

Milliman: Multiemployer pension funding rises to 92%

2021-08-18T16:29:06-07:00August 18th, 2021|Categories: Multiemployer Plans|Tags: , |

By Rob Kozlowski Source: Pensions & Investments The estimated aggregate funding ratio of multiemployer defined benefit plans in the U.S. reached 92% as of June 30, up from 88% at the end of 2020, according to a study from Milliman. The first six months of the year continued a strong market recovery that had already brought funding levels to their highest ratio since Dec. 31, 2007, when the level was 85%. The estimated investment return for Milliman's simplified portfolio [...]

9 07, 2021

PBGC and IRS Issue Guidance on Special Financial Assistance for Financially Troubled Multiemployer DB Pension Plans; Comments Requested

2021-07-09T15:17:41-07:00July 9th, 2021|Categories: Multiemployer Plans|Tags: , , , |

Source: IFEBP The Pension Benefit Guaranty Corporation (PBGC) and Internal Revenue Service (IRS) issued guidance on Special Financial Assistance (SFA) for financially troubled multiemployer defined benefit (DB) pension plans. PBGC issued an interim final rule implementing a new SFA Program. The American Rescue Plan Act of 2021 (ARPA) — passed by Congress and signed by President Biden on March 11, 2021 — contains provisions to provide an estimated $94 billion in assistance to eligible plans that are severely underfunded. Additionally, it assists [...]

5 05, 2021

Variable Benefit Plans a Solution for All Types of Plan Sponsors

2021-05-13T08:05:26-07:00May 5th, 2021|Categories: Retirement|Tags: , , |

By Rebecca Moore Source: Plan Sponsor Plan sponsors and others in the retirement plan industry have been showing an increased interest in new defined benefit (DB) plan designs that minimize cost volatility and/or provide risk sharing. During a recent webinar on the subject, Rachel Barnes, a member of the pension committee at the American Academy of Actuaries, noted that many corporate plan sponsors have been taking steps to transfer or eliminate their traditional DB plan obligations. While some have [...]

21 04, 2021

DC Plans More Vulnerable to ERISA Litigation Than DB Plans

2021-05-13T08:05:23-07:00April 21st, 2021|Categories: ERISA|Tags: , , |

Source: AI-CIO.com Defined contribution (DC) retirement plans are far more susceptible to Employee Retirement Income Security Act (ERISA) lawsuits than defined benefit (DB) plans, lawyers argue in a lawsuit filed against The Wesco Distribution Inc. Retirement Savings Plan. “The potential for imprudence is much greater in defined contribution plans than in defined benefit plans,” said the lawsuit. The complaint, which alleges Wesco neglected its fiduciary duties by allowing excessive fees, said that companies with DC plans are much more [...]

24 03, 2021

Too embarrassed to ask: what’s the difference between a defined benefit pension and a defined contribution pension?

2021-03-24T14:53:59-07:00March 24th, 2021|Categories: Defined Benefit Plans|Tags: , |

A pension is simply a tax-efficient savings vehicle, or “tax wrapper”, that allows you or your employer to invest for your long-term future.  For most of us, the main goal of a pension is to provide us with money to live off in later life, usually once we’ve retired from full-time employment. The rules governing pensions can seem confusing, particularly as the government fiddles with them at almost every other budget. But at the most basic level, there are [...]

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