11 04, 2019

Report card gauges union pension fund assets’ ties to building trades jobs

2019-04-11T08:44:00-07:00April 11th, 2019|Categories: Defined Benefit Plans|Tags: , , |

Some real estate and infrastructure fund managers dealing with building trades pension funds are doing better than others when it comes to connecting pension fund assets and union jobs, according to a report card released Wednesday at the North America's Building Trades Unions' Washington legislative conference. Building trades unions with a collective $600 billion in pension fund assets are increasingly demanding that connection, with a goal of moving $70 billion in pension assets over the next 10 years into [...]

1 04, 2019

The Federal Government Gave Up on Retirement Security

2019-04-01T13:25:49-07:00April 1st, 2019|Categories: Defined Benefit Plans|Tags: |

Recently, the U.S. Treasury said that it is perfectly okay for companies to swindle employees out of their pension by offering one-time payments worth less than the pension that those employees are giving up. The Department of Labor, nominally responsible for protecting workers in retirement plans, said nothing. This isn’t the first time the government stood by as American businesses shifted risks onto their employees and retirees. Treasury and Labor, whose decisions shape the retirements of millions of people, [...]

1 04, 2019

Bipartisan retirement security package introduced in House

2019-04-01T13:23:20-07:00April 1st, 2019|Categories: Defined Benefit Plans|Tags: |

A bipartisan group of legislators Friday introduced a bill that features core provisions of the Retirement Enhancement Savings Act and adds other measures that aim to bolster retirement security. The Setting Every Community up for Retirement Enhancement Act of 2019, referred to as the SECURE Act, includes provisions that would make it easier for smaller employers to join open multiple-employer plans, ease non-discrimination rules for frozen defined benefit plans and add a safe harbor for selecting lifetime income providers in [...]

12 03, 2019

The Chicago Symphony Goes on Strike Over Pension Plan

2019-03-12T09:55:09-07:00March 12th, 2019|Categories: Defined Benefit Plans|Tags: |

A new round of labor upheaval hit the classical music world on Sunday night, when the musicians of the Chicago Symphony Orchestra, one of the finest ensembles in the nation, went on strike in an effort to preserve their defined-benefit pension plan. The players — who are among the best-paid in the field, earning a minimum annual salary of $159,000 last season, and often more — began walking a picket line outside Orchestra Hall on Monday morning. In recent [...]

19 02, 2019

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

2019-02-19T12:00:02-07:00February 19th, 2019|Categories: Defined Benefit Plans|Tags: |

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 [...]

13 02, 2019

DB pensions best option for Canadian employers, economy

2019-02-13T11:13:26-07:00February 13th, 2019|Categories: Defined Benefit Plans|Tags: |

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 [...]

7 02, 2019

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

2019-02-07T15:09:09-07:00February 7th, 2019|Categories: Defined Benefit Plans|Tags: |

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 [...]

16 01, 2019

Pension legislation should balance DB sustainability with pension promise

2019-01-16T11:30:27-07:00January 16th, 2019|Categories: Defined Benefit Plans|Tags: |

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 [...]

19 11, 2018

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

2018-11-19T16:18:26-07:00November 19th, 2018|Categories: Defined Benefit Plans|

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 [...]

7 11, 2018

DB pension returns power through a difficult autumn

2018-11-07T13:28:58-07:00November 7th, 2018|Categories: Defined Benefit Plans|Tags: |

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 [...]

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