17 08, 2020

Pensions preferred over higher pay

2020-08-17T12:26:51-07:00August 17th, 2020|Categories: Defined Benefit Plans|Tags: , , |

Eighty per cent of Canadians would rather have a better pension plan, or any pension plan, instead of a higher salary, according to a new survey. “[This idea that] people would actually forego some salary increase to get a higher pension is something that I think surprises, just the level of commitment to that,” says Jim Keohane, president and CEO of the Healthcare of Ontario Pension Plan (HOOPP) in Toronto, which commissioned the survey. The 80 per cent is [...]

3 08, 2020

Canadian defined benefit pension plans enjoy best quarter ever

2020-08-03T11:56:43-07:00August 3rd, 2020|Categories: Defined Benefit Plans|Tags: |

Canadian defined benefit pension plans experienced a pronounced upsurge in the second quarter, posting a median return of 9.6 per cent, according to the RBC Investor & Treasury Services All Plan Universe.  This marked the highest single quarter return in the universe’s history, reversing the steep Q1 losses and raising the median plan’s return to 1.4 per cent on a year-to-date basis. The gains followed a series of aggressive fiscal and monetary support measures introduced in March to address [...]

22 04, 2020

McConnell rules out pension aid for states

2020-04-22T15:27:04-07:00April 22nd, 2020|Categories: Defined Benefit Plans|Tags: , |

States should be able to pursue bankruptcy rather than relying further on the federal government during the coronavirus pandemic, and any federal assistance should not be spent on addressing pension underfunding, said Senate Majority Leader Mitch McConnell, R-Ky., Wednesday during a radio interview. Radio host Hugh Hewitt asked whether Mr. McConnell would insist on reforms of state pension plans if states get more funding from the next COVID-19 assistance measure expected from Congress. "There's not going to be any [...]

22 04, 2020

CORPaTH’s letter to Congress Leaders

2020-04-22T13:52:55-07:00April 22nd, 2020|Categories: Defined Benefit Plans|Tags: |

CORPaTH has reached out to Congressional leaders to offer a variety of powerful and pragmatic ideas to assist in creating positive solutions to the pension crisis affecting millions of Americans who are currently retired or who hope to retire in the future. Click here to read the letter. Click here to read the letter.

22 04, 2020

NIRS Reponds to The New York Times on Public Pensions

2020-04-22T08:10:43-07:00April 22nd, 2020|Categories: Defined Benefit Plans|Tags: |

In response to a New York Times article published April 2, 2020, an article regarding public pensions, NIRS writes that characterizing these retirement plans that serve 15 million working and 11 million retired employees of state and local government as “time bombs” borders on journalistic malpractice. Indeed, public pension funds face challenges that will arise because of the unprecedented economic conditions facing all investors. But, the vast majority of these plans are built to last. The letter indicates that when [...]

21 04, 2020

Public pensions survived the Great Recession. They will survive coronavirus, too

2020-04-21T10:25:22-07:00April 21st, 2020|Categories: Defined Benefit Plans|Tags: , |

For most Americans these days, timing is everything when it comes to retirement. At the moment, it looks like those who recently retired or who are on the cusp of retirement may have picked a bad time to be born. For them, the steep drop in the investment markets caused by the coronavirus pandemic came at just the wrong moment. History tells us that the markets will recover and that cycles of ups and downs are inevitable. But under [...]

6 03, 2020

Safeway, Giant agree to guarantee pension payments for UFCW members

2020-03-06T09:19:36-08:00March 6th, 2020|Categories: Defined Benefit Plans|Tags: , , |

Members of two United Food & Commercial Workers locals in the Washington region reached a collective bargaining agreement with Safeway Inc. on Wednesday that guarantees full funding of pension benefits for current employees and retirees. A similar agreement was also reached with Giant Food of Maryland, which in February reached a tentative agreement. Union officials said that the more contentious Safeway agreement, ratified by local members hours before a planned strike, was one of very few agreements guaranteeing pensions. [...]

18 02, 2020

McClatchy files for Chapter 11 protection while PBGC talks continue

2020-02-18T14:26:36-08:00February 18th, 2020|Categories: Defined Benefit Plans|Tags: , , |

McClatchy Co. filed for voluntary Chapter 11 bankruptcy protection Thursday while it continues to seek support for a reorganization plan from key stakeholders, including the Pension Benefit Guaranty Corp. In its bankruptcy announcement, the company said the goal is to emerge from the process in the next few months after resolving legacy debt and pension obligations. "We are moving with speed and focus to benefit all our stakeholders and our communities," President and CEO Craig Forman said in the [...]

22 10, 2019

FedEx Marches to Its Own Beat on Pension De-risking

2019-10-22T10:33:27-07:00October 22nd, 2019|Categories: Defined Benefit Plans|Tags: |

Many big companies are looking to de-risk their pension plans by offering lump-sum payouts or cutting deals with insurance companies. Some, however, are taking a different route. FedEx, for example, recently announced plans to contribute $1 billion to its U.S. pension plans before the end of its fiscal year ending May 29, 2020. That’s $300 million more than its expected minimum required contribution. It’s not a brand-new strategy: the company has annually been contributing at least $1 billion to the [...]

22 10, 2019

GE joins corporate brethren in trend to put DB plan in the rearview mirror

2019-10-22T09:46:35-07:00October 22nd, 2019|Categories: Defined Benefit Plans|Tags: |

General Electric Co.'s recent announcement that it is freezing its U.S. defined benefit plan as a means of reducing its pension liabilities is just the latest example of corporations abandoning their DB plans and moving participants into a defined contribution plan. As a means of reducing its pension deficit by $5 billion to $8 billion, GE said Oct. 7 it is freezing its U.S. pension plan for 20,000 salaried employees and supplementary pension benefits for another 700 employees who [...]

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