19 02, 2019

How are defined benefit plans in the UK affecting southern European companies?

2019-02-19T12:00:02-08:00

Private sector defined benefit (DB) pension plans are uncommon in Spain and Italy. However, DB plans remain an important issue for companies in the United Kingdom. They can have a significant effect on the financial performance of multinational companies.MBW International, Milliman’s joint venture with Barnett Waddingham, recently analysed 20 multinational companies in Spain and Italy with around £51.7 billion of UK DB pension liabilities between them. The analysis by Isabel Coles and Andrew Vaughan considers the effect UK DB [...]

How are defined benefit plans in the UK affecting southern European companies?2019-02-19T12:00:02-08:00
13 02, 2019

DB pensions best option for Canadian employers, economy

2019-02-13T11:13:26-08:00

Defined benefit pension plans aren’t just better for Canadian workers, but for the country’s economy in general, according to a new study by the Canadian Public Pension Leadership Council. Statistics Canada data from 2018 showed 37.5 per cent of Canadian workers have some type of pension or retirement savings plan through their workplace, and 25.2 per cent have a DB plan. Far more (88 per cent) employees in the public sector participate in some form of retirement savings plan compared to the private sector [...]

DB pensions best option for Canadian employers, economy2019-02-13T11:13:26-08:00
7 02, 2019

Tell Congress to Save Multiemployer Pensions, Support the Butch Lewis Act

2019-02-07T15:09:09-08:00

The Machinists Union is fighting to save troubled multiemployer pension plans while fully protecting the earned and vested benefits of current and future retirees. While the IAM pension plan is financially sound, the Pension Benefit Guaranty Corporation (PBGC) estimates that over 100 multiemployer pension plans, covering more than 1 million participants, are in “critical and declining status” and will become insolvent within the next 20 years. The best solution to accomplish this goal is to pass the Rehabilitation for [...]

Tell Congress to Save Multiemployer Pensions, Support the Butch Lewis Act2019-02-07T15:09:09-08:00
16 01, 2019

Pension legislation should balance DB sustainability with pension promise

2019-01-16T11:30:27-08:00

Any modifications to federal pension legislation should encourage plan sponsors to continue offering defined benefit pension plans, while helping them fulfil their pension promises to plan members, according to the Canadian Institute of Actuaries. “Fulfilling pension promises is especially important for those plan members who can least afford the risk of benefit reductions, such as those with a modest monthly pension and those who are at an age where pension losses cannot easily be made up with new savings,” wrote the CIA in [...]

Pension legislation should balance DB sustainability with pension promise2019-01-16T11:30:27-08:00
19 11, 2018

When it comes to DB plans, what do members want to know?

2018-11-19T16:18:26-08:00

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 [...]

When it comes to DB plans, what do members want to know?2018-11-19T16:18:26-08:00
7 11, 2018

DB pension returns power through a difficult autumn

2018-11-07T13:28:58-08:00

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 [...]

DB pension returns power through a difficult autumn2018-11-07T13:28:58-08:00
18 10, 2018

Funded Ratio for Corporate Pensions Hits 10-Year High

2018-10-18T14:07:34-08:00

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 [...]

Funded Ratio for Corporate Pensions Hits 10-Year High2018-10-18T14:07:34-08:00
9 10, 2018

Canadian DB Pension Funds’ Cup Runneth Over

2018-10-09T09:26:01-08:00

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, [...]

Canadian DB Pension Funds’ Cup Runneth Over2018-10-09T09:26:01-08:00
2 10, 2018

Canadian DB pensions reach highest solvency in nearly two decades

2018-10-02T10:41:53-08:00

In the third quarter of 2018, Canadian defined benefit pension plans reached their highest solvency ratio of any quarter since November 2000, according to Mercer’s latest pension health index. Representing a hypothetical plan, the index reached a 112 per cent solvency level as of Sept. 28, 2018, up from 107 per cent at the ned of the previous quarter. As well, more than 60 per cent of plans are now fully funded and only five per cent stand at a [...]

Canadian DB pensions reach highest solvency in nearly two decades2018-10-02T10:41:53-08:00
18 05, 2018

Some Union Retirees Could See Pension Benefits Cut 90%, PBGC Chief Warns

2018-05-18T17:20:49-08:00

Some union retirees could see their pension benefits cut by 90 percent, Pension Benefit Guaranty Corporation Director Tom Reeder warned today. A retiree getting $8,000 annually now could be cut to less than $1,000.That is a danger, cautioned Reeder, if Congress doesn’t act soon to shore up troubled multiemployer union pension plans and the PBGC’s insurance program that backs them up. A multiemployer pension plan is typically a workplace retirement savings program created by a union and companies in [...]

Some Union Retirees Could See Pension Benefits Cut 90%, PBGC Chief Warns2018-05-18T17:20:49-08:00
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