21 08, 2019

NIRS: No money saved for 4 states that shifted to DC from DB plans

2019-08-21T08:17:37-07:00August 21st, 2019|Categories: 401(k), Defined Benefit Plans|Tags: , |

Four states that shifted to defined contribution from defined benefit plans did not save money, said new and updated case studies from the National Institute on Retirement Security. NIRS researchers updated prior case studies on Alaska, Michigan and West Virginia and created a new study on Kentucky. All of the states have switched new employees to defined contribution-only accounts to deal with pension underfunding and rising costs. According to an NIRS report on the studies, the changes increased overall [...]

12 08, 2019

New postal workers would no longer earn a pension under preliminary business plan

2019-08-12T08:44:46-07:00August 12th, 2019|Categories: Defined Benefit Plans|Tags: |

The U.S. Postal Service, facing pressure from Congress to propose initiatives to ensure the agency’s long-term viability, is floating a business plan that would include significant cuts to employees’ take-home pay and benefits. USPS included a hike to the employee contribution level for pensions in a first draft of a 10-year business plan presented to lawmakers and stakeholders, according to multiple people who were briefed on it, as well as phasing out pensions altogether for new hires in favor of [...]

24 07, 2019

What Congress Could Do To Stop a Pension Crisis

2019-07-24T15:20:25-07:00July 24th, 2019|Categories: Defined Benefit Plans|Tags: , |

A looming retirement crisis is facing the U.S. taxpayer that will become an economic tsunami if Congress doesn’t act. The pensions of 1.3 million workers in certain multiemployer pension plans and the federal government’s Pension Benefit Guaranty Corporation (PBGC) are set to collapse. Only Congress can prevent this from cascading throughout the economy, to taxpayers and into healthy pension plans and their employers. How things spiraled into this crisis is complicated, but important to understand. Some say it’s a multiemployer problem, [...]

14 05, 2019

Feds approve pension cuts to W.Pa. Teamsters fund; 22,000 ballots to be mailed

2019-05-14T13:04:22-07:00May 14th, 2019|Categories: Defined Benefit Plans|Tags: , |

About 22,000 ballots will be mailed to pension plan participants in Western Pennsylvania for a vote on a 30% benefit cut proposed by the plan’s board. The ballots are being authorized after the U.S. Department of Treasury approved the Western Pennsylvania Teamsters and Employers Pension Fund’s request submitted last September to cut benefits. The plan represents about 17,000 retirees and 5,000 people who are working and paying into the fund. In a letter dated May 7, the Treasury Department sent [...]

29 04, 2019

Employer Contributions Aid in DB Plan Funding Progress

2019-04-29T13:51:34-07:00April 29th, 2019|Categories: Defined Benefit Plans|Tags: , |

An analysis from the Society of Actuaries suggests the majority of defined benefit (DB) plan sponsors are doing a good job of making contributions that help reduce unfunded liabilities. The study compares employer contributions to single-employer DB plans to benchmarks for measuring whether pension plan contributions—absent other influences—reduced unfunded liabilities or met other benchmarks, such as regulatory requirements. The study considers five benchmarks that represent the contribution needed to: Satisfy the minimum required contribution (MRC) as defined by Internal [...]

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 [...]

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