19 11, 2018

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

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

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+00:00
7 11, 2018

DB pension returns power through a difficult autumn

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

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+00:00
18 10, 2018

Funded Ratio for Corporate Pensions Hits 10-Year High

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

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+00:00
9 10, 2018

Canadian DB Pension Funds’ Cup Runneth Over

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

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+00:00
2 10, 2018

Canadian DB pensions reach highest solvency in nearly two decades

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

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+00:00
18 05, 2018

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

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

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+00:00
16 05, 2018

Joint Select Committee on Solvency of Multiemployer Pension Plans

2018-05-17T09:42:39+00:00

Joint Select Committee on Solvency of Multiemployer Pension Plans held a hearing in May seeking input from stakeholders. The committee held the hearing to improve the solvency of multiemployer pension plans and the Pension Benefit Guarantee Corporation. “As the committee works to report on the solvency of multiemployer pension plans and the Pension Benefit Guarantee Corporation and provide recommendations to significantly improve their long-term health, I am interested in hearing from stakeholders,” Hatch said. “Information and insights, from both [...]

Joint Select Committee on Solvency of Multiemployer Pension Plans2018-05-17T09:42:39+00:00
16 05, 2018

Tax changes may give defined benefit plans new life

2018-05-16T13:58:45+00:00

Business owners who want to take advantage of the new 20 percent qualified business income (QBI) deduction under the 2017 tax law may want to consider having not only defined contribution retirement plans, such as 401(k) plans, but also defined benefit plans similar to old-fashioned pensions. Defined benefit plans may be especially interesting now to certain entrepreneurs, investors and professional practitioners with earnings too high to take advantage of the QBI, said Timothy Speiss, partner in charge of EisnerAmper [...]

Tax changes may give defined benefit plans new life2018-05-16T13:58:45+00:00
7 05, 2018

California’s most powerful voice on Wall Street? Its pensions

2018-05-07T09:40:31+00:00

The fight over public pensions in California is almost exclusively described as a dispute between people worried about tax hikes and public servants wanting to get paid what they were promised. But this is only part of the pension story — one focused on the "liability" side of the balance sheet. What's missing is the "asset" side of that balance sheet. California's worker-centered pensions have played an extraordinarily important role as investors over the last 20 years. Moves to [...]

California’s most powerful voice on Wall Street? Its pensions2018-05-07T09:40:31+00:00
26 04, 2018

Defined benefit plans are showing new signs of life

2018-04-26T09:47:33+00:00

Advisers and plan sponsors who have written off the defined benefit plan as a relic of the past may want to reconsider. While the number of participants in DB plans has declined somewhat in recent years, the number of DB plans has been rising. Specifically, the number of single-employer DB plans with fewer than 100 participants rose for the third consecutive year in 2015, up 2% from 2012, according to recently published data from the Department of Labor’s Employee [...]

Defined benefit plans are showing new signs of life2018-04-26T09:47:33+00:00
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