4 05, 2021

Dutch funding ratios continue to rise

2021-05-13T08:05:26-07:00May 4th, 2021|Categories: Pension Funding|Tags: |

By Natalie Tuck Source: European Pensions The average Dutch coverage ratio increased to 109 per cent from 108 per cent in April, according to Aon’s latest analysis. Its Pension Thermometer found also revealed that policy funding ratio has increased to 98 per cent. This funding ratio is above the adjusted temporary statutory minimum requirement of 90 per cent. Aon believes that the increases over the past three months mean that most pension funds are “out of harm’s way” and [...]

21 04, 2021

What Comes After 2051 Pension Relief Sunset? It Depends, Attorneys Say

2021-05-13T08:05:23-07:00April 21st, 2021|Categories: Pension Funding|Tags: |

By Austin R. Ramsey Source: Bloomberg Law Now that special financial assistance has been signed into law for union-brokered pensions, all eyes are on the year 2051—the date through which a federal stimulus package is intended to prop up the most underfunded of those plans. Actuarial assumptions federal agencies are poised to make now about who qualifies and how much money multiemployer plans will receive could determine whether those plans survive after that date. Without financial assistance, about 124 [...]

21 04, 2021

Public pensions funded ratio continues strong recovery; hits new high-water mark of 79.0% in Q1 2021

2021-05-13T08:05:20-07:00April 21st, 2021|Categories: Pension Funding|Tags: |

By Rebecca A. Sielman Source: Milliman The first quarter (Q1) of 2021 marked a fourth consecutive quarter of high-water marks for both assets and liabilities for public pensions, with the estimated funded status of the 100 largest U.S. public pension plans growing from 78.6% at the end of December 2020 to 79.0% at the end of March 2021, as measured by the Milliman 100 Public Pension Funding Index (PPFI). The deficit between estimated assets and liabilities closed slightly from [...]

9 04, 2021

Florida Senate bill seeks to close state pension plan to most new hires

2021-04-09T15:40:01-07:00April 9th, 2021|Categories: Pension Funding|Tags: , |

By Rob Kozlowski Source: Pensions & Investments Florida's Senate approved a bill that would close the $183.1 billion Florida Retirement System Pension Plan to most new hires. The bill, approved Thursday 24-16, would close the defined benefit plan to most new hires starting June 30, 2022 and automatically enroll them in the Florida Retirement System Investment Plan, the state's $15.3 billion 401(a) plan. New hires currently have the option of joining either plan when they become state employees. "Special [...]

25 02, 2021

COVID-19 Relief Bill Could Rescue Union Retirees’ Pensions

2021-02-25T14:42:15-08:00February 25th, 2021|Categories: Economy, Pension Funding|Tags: , , |

The COVID-19 pandemic relief legislation set for a vote this week in the House contains a provision to save struggling union pension plans that experts say has a good shot at passing, forecasting a possible end to a $65 billion funding crisis that threatens one million retirees' pensions. The American Rescue Plan, which cleared the House Budget Committee on Monday, would provide direct assistance to roughly 200 financially struggling union pension plans through the federal government's safety net for [...]

22 02, 2021

Prospects Brighten for Much Needed Pension Rescue Bill as It Heads to House Floor Vote

2021-02-22T13:45:51-08:00February 22nd, 2021|Categories: Pension Funding|Tags: , , |

The House Ways and Means Committee significantly boosted the prospect for passage of much needed pension relief that would protect the hard-earned and promised benefits of active and retired truck drivers, nurses and health care workers, plumbers and construction trade workers – people who we now recognize and honor as America’s essential workers in this time of crisis. On February 12, the Committee “marked up” and voted in favor of the Butch Lewis Emergency Pension Plan Relief Act of [...]

18 02, 2021

Landmark Pension Schemes Bill receives Royal Assent

2021-02-18T10:31:53-08:00February 18th, 2021|Categories: Pension Funding|Tags: , |

The Pension Schemes Bill has been granted Royal Assent today, ushering in major changes to pension schemes aimed at providing greater protection for members. The move sees the Bill become the Pensions Schemes Act, almost three years after it was first mooted in response to the BHS and Carillion pension scheme scandals, which slashed the value of thousands of workers’ pensions at both organisations. Announcing the enactment, minister for pensions Guy Opperman, said “This is a historic day for [...]

18 02, 2021

Democrats’ Coronavirus Relief Plan Could Save The Pensions Of 1 Million People

2021-02-18T10:30:11-08:00February 18th, 2021|Categories: Pension Funding|Tags: , |

Retirement experts have been warning for years that more than 1 million workers and retirees could lose their pensions if Congress doesn’t act. Now help from Washington might finally arrive, thanks to an unlikely legislative opening provided by the pandemic. Congressional Democrats are moving a $1.9 trillion coronavirus relief plan through a process known as budget reconciliation, hoping to send it to President Joe Biden’s desk this month. A proposal to shore up troubled pension plans and the federal [...]

18 02, 2021

Employees want climate change pensions information

2021-02-18T10:27:10-08:00February 18th, 2021|Categories: Economy, Pension Funding|Tags: |

Research by workplace savings fintech Cushon has revealed employees overwhelmingly worry about whether their pensions are invested in firms that contribute to climate change – but still feel uninformed about it. The study found 84% of respondents are concerned about climate change and 69% are worried their company pension could be investing in businesses that are contributing to it. But according to the research, 99.5% of employees have no idea about the scale of carbon emitted as a result [...]

9 02, 2021

Rep. Neal Introduces DB Plan Relief Bill

2021-02-09T14:36:19-08:00February 9th, 2021|Categories: Pension Funding|Tags: |

House Ways and Means Committee Chairman Richard Neal, D-Massachusetts, has introduced the Emergency Pension Plan Relief Act of 2021 (EPPRA). The bill includes provisions designed to address the worsening multiemployer pension crisis. According to Neal, it is a standalone version of a provision from the House-passed Heroes Act. It also contains long-expected proposals for single-employer defined benefit (DB) plan funding relief. “The COVID-19 economic downturn has only worsened the multiemployer pension crisis and increased the urgency with which we must [...]

16 11, 2020

As public pension costs soar, some Southern California agencies turn to controversial borrowing to fill deep holes

2020-11-16T09:55:34-08:00November 16th, 2020|Categories: Pension Funding|Tags: , , , |

The little agency responsible for killing mosquitoes and rats in the Coachella Valley will see its bill for worker pensions nearly triple over just four years. Payments will also nearly triple for Cal-OPTIMA, Orange County’s health care system for low-income people, seniors and those with disabilities, as well as for the Los Angeles Memorial Coliseum Commission, the folks who bring events to the historic stadium in Exposition Park. They’ll more than double for the Orange County Transportation Authority, which [...]

6 11, 2020

51% likely to review or reduce pension contributions due to Covid-19 pandemic

2020-11-06T11:39:36-08:00November 6th, 2020|Categories: Pension Funding|Tags: , |

Approximately half (51%) of UK savers are likely to review or reduce pension contributions in favour of short-term saving or debt reduction or elimination as a result of the Covid-19 (Coronavirus) pandemic, according to research by BlackRock. Its Defined contribution (DC) pulse survey, which surveyed 1,000 UK savers, also found that 76% agree that they need to be more careful about their financial future, although a further 44% see retirement saving as important. However, more than half (51%) said [...]

6 11, 2020

10 Ways to Close Public Pension Funding Gaps

2020-11-06T11:25:39-08:00November 6th, 2020|Categories: Pension Funding|Tags: |

The best way to close public pension funding gaps, according to the National Conference on Public Employee Retirement Systems (NCPERS), is to reform state and local revenue systems and close tax loopholes. “But that is a long road, and it is beyond the scope of responsibilities of pension trustees and administrators,” NCPERS said in a recent research paper called “Ten Ways to Close Public Pension Funding Gaps.” “However, we can help ensure that state and local governments are looking [...]

14 10, 2020

New York Times inks deal to transfer $235 million in pension liabilities

2020-10-14T11:33:16-07:00October 14th, 2020|Categories: Pension Funding|Tags: , |

New York Times Co., New York, entered into an agreement with Massachusetts Mutual Life Insurance Co. to purchase a group annuity contract to transfer about $235 million in U.S. pension plan liabilities. The contract will transfer the benefit payment responsibilities for about 1,850 retirees and beneficiaries in the New York Times Cos. Pension Plan to MassMutual, according to an 8-K filing Tuesday with the SEC. The transaction, which the company expects to finalize in early 2021, will be funded [...]

29 09, 2020

State increased public pension assets despite pandemic

2020-09-29T12:41:56-07:00September 29th, 2020|Categories: Pension Funding|Tags: , , |

Indiana’s public pension funds for state and local government employees, including teachers, has apparently weathered the financial markets’ volatility during the coronavirus pandemic, new data from the state show. The General Assembly’s Pension Management Oversight Committee heard Wednesday that the Indiana Public Retirement System increased its pension assets by 2.56% to $30.6 billion during the 2020 budget year, which ran from July 1, 2019, to June 30, 2020. According to INPRS, the state’s prepaid pension programs were 90.6% funded, [...]

3 08, 2020

California Supreme Court forbids pension spiking, but upholds other retirement protections

2020-08-03T11:59:28-07:00August 3rd, 2020|Categories: Pension Funding|Tags: , |

The California Supreme Court on Thursday ruled against public employee unions that were trying to beat back part of former Gov. Jerry Brown’s pension overhaul law. The court’s ruling prohibits so-called pension spiking, a strategy in which county public workers took extra shifts, worked odd hours at higher pay or cashed out accumulated leave at the end of their careers to inflate their pensions in retirement. The Alameda County Deputy Sheriff’s Association filed a lawsuit in 2012 over Brown’s [...]

9 07, 2020

Pension plans see rebound in second quarter

2020-07-09T14:59:45-07:00July 9th, 2020|Categories: Pension Funding|Tags: , |

The funding status of the largest corporate pension plans in the U.S. have rebounded during the second quarter of 2020, due to improvements in the equity and bond markets, according to Willis Towers Watson data. “The first quarter was a more difficult quarter for the equities,” says Joseph Gamzon, senior director of retirement at Willis Towers Watson, a global advisory, broking and solutions company. “For most pension plan sponsors the combination of the equity markets performing well and the [...]

10 06, 2020

Pandemic Puts More Stress On Struggling Pension System

2020-06-10T14:54:52-07:00June 10th, 2020|Categories: Pension Funding|Tags: |

The coronavirus outbreak has presented daunting challenges for an already-struggling multiemployer pension plan system. It's also amplifying calls for Congress to step up and pass legislation to protect against millions of retirees losing their financial livelihood. More than a hundred multiemployer pension plans covering over a million workers and retirees were on the ropes even before COVID-19 became a household term, and that number could more than double depending on how the pandemic plays out, according to a letter [...]

6 05, 2020

Protecting pensions after coronavirus

2020-05-06T14:49:06-07:00May 6th, 2020|Categories: Pension Funding|Tags: , |

Unions and pension schemes are being supportive of employers struggling with the pandemic. When the recovery starts that support should be repaid. Across the whole economy, employers are under unprecedented strain as they deal with lockdown and economic contraction. Companies with defined benefit pension schemes could face particular short-term pressures, as turmoil in financial markets may increase deficits – the gap between the assets a scheme has and the pensions it must pay – at exactly the time they are [...]

3 04, 2020

Coronavirus Is Making the Public Pension Crisis Even Worse

2020-04-03T15:14:13-07:00April 3rd, 2020|Categories: Pension Funding|Tags: |

For years, the country’s public pension plans have faced a yawning gap between what they owe and what they can pay. From the State of California’s public employees’ retirement plan, with more than 1.6 million participants, to tiny funds for employees of local mosquito-control programs in Illinois, public pensions are the time bomb of government finance. Now the coronavirus pandemic has it ticking faster. Already chronically underfunded, pension programs have taken huge hits to their investment portfolios over the [...]

26 03, 2020

Stimulus deal includes temporary relief for retirement plans

2020-03-26T07:22:31-07:00March 26th, 2020|Categories: Pension Funding|Tags: , , |

The Senate approved on Wednesday a roughly $2 trillion economic stimulus package for affected companies and workers that also provides some temporary relief for retirement plan sponsors and participants. Final approval is expected Friday in the House of Representatives, where House Speaker Nancy Pelosi said Wednesday she expected to debate the measure on the floor. Defined benefit plan sponsors gained a one-year holiday from making their 2020 contributions, but did not get other measures sought, including delayed reporting or [...]

3 03, 2020

Students at UK universities brace for next round of strike action

2020-03-03T14:17:42-08:00March 3rd, 2020|Categories: Pension Funding|Tags: |

Universities in the UK are revving up for the second round of faculty strikes, set to start on Feb 20, 2020 for 14 days as announced by The University and College Union (UCU), which represents both lecturers and non-academic staff. According to the Telegraph, the strike will affect 74 universities in the UK. In November and December last year, UCU members at 60 universities were involved in a strike that lasted for eight days – affecting around one million [...]

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