27 03, 2018

Union says Tops plans to cut payments to employee pension plan

2018-03-27T09:31:38-07:00March 27th, 2018|Categories: Pension Funding|Tags: |

Tops Markets plans to ask a bankruptcy court judge to allow it to reduce its contributions by nearly two-thirds to the already underfunded pension plan that covers most of its employees, according to officials from the largest union representing workers at the supermarket chain. Tops has not yet asked the U.S. Bankruptcy Court to reduce the payments, but officials from Local One of the United Food and Commercial Workers said they have been told by attorneys representing the supermarket [...]

16 03, 2018

A Case Against Cuts to Public Pensions

2018-03-16T10:15:08-07:00March 16th, 2018|Categories: Pension Funding|Tags: , |

Dave Low is the chairman of Californians for Retirement Security, a coalition of public employee unions that was founded about 15 years ago to defend workers against calls for pension cuts. Today, with retirement costs ballooning, the pressure is sure to rise. While the California Legislature and leading candidates for governor have carefully avoided any substantive discussion on pensions, cities are struggling. Rising retiree costs have forced many cities and school districts to divert more of today’s budgets to [...]

2 02, 2018

Tax Reform Fuels DB Plan Accelerated Funding

2018-02-02T09:49:41-07:00February 2nd, 2018|Categories: Pension Funding|Tags: , |

Since, under tax reform, the corporate tax rate will be lower in the future than what had previously been in effect, more voluntary defined benefit (DB) plan contribution activity is expected, according to Michael A. Moran, managing director and chief pension strategist with Goldman Sachs Asset Management (GSAM). In a Q&A on GSAM’s website, Moran explains that contributions to corporate DB plans are generally tax deductible up to certain limits. For plan sponsors that were contemplating making a contribution in [...]

10 01, 2018

Sen. Schumer, Teamsters Push for Bill to Cover Pensions

2018-01-10T14:19:26-07:00January 10th, 2018|Categories: Pension Funding|Tags: , , |

Sen. Chuck Schumer and Rep. Peter King joined Long Island Teamsters Jan. 2 in calling for union pension shortfalls to be funded through Treasury bonds tied to the federal budget. Schumer (D-N.Y.) and King (R-Seaford) are pushing Congress to pass the Butch Lewis Act, which would create a new office within the Treasury Department to allow pension plans to borrow for any shortfall using Treasury bonds issued by the government to sell to financial institutions. […]

7 12, 2017

Schumer backs Teamster pension rescue proposal; Senate bill to create Treasury agency would ease impact of cuts to benefits

2017-12-07T14:29:37-07:00December 7th, 2017|Categories: Pension Funding|Tags: , , |

Across the country, 114 of these multi-employer pension plans, covering more than 1.3 million workers, are underfunded by $36.4 billion and expect to become insolvent within the next 20 years. Teamsters whose pension benefits were cut could see some future relief under a proposal backed by Senate Minority Leader Charles E. Schumer, D-N.Y. Schumer and several other Democratic senators are backing legislation that would create a remedy through the Treasury Department. […]

29 11, 2017

Manufacturers Asso. of Israel offers NIS 1.5 billion to pensioners

2017-11-29T11:57:28-07:00November 29th, 2017|Categories: Pension Funding|Tags: , , |

Members of the Manufacturers Association of Israel are mobilizing to transfer NIS 1.5 billion annually to the National Insurance Institute (NII) “so that no elderly person will remain poor in Israel,” MAI President Shraga Brosh announced Sunday morning at a press conference in Tel Aviv. The MAI is the representative body of all industrial sectors in Israel, with a membership of over 2,000 organizations and plants responsible for more than 95% of the industrial production in Israel. The move [...]

14 11, 2017

OPTrust to divest from all tobacco-related equity, bond investments by January

2017-11-16T22:51:56-07:00November 14th, 2017|Categories: Pension Funding|Tags: , , |

OPTrust, which manages the assets of the C$19.5 billion ($15.2 billion) Ontario Public Service Employees Union Pension Plan, Toronto, will divest from all tobacco-related equity and fixed-income investments by Jan. 1, 2018. The divestment will affect C$23 million in equity and bond investments that derive most of their revenue from production or manufacture of tobacco products, said Hugh O’Reilly, president and CEO, in an interview Thursday. […]

31 10, 2017

23% of millennials do not know how much their employer pays into their workplace pension

2017-10-31T20:10:57-07:00October 31st, 2017|Categories: Pension Funding|Tags: , |

Under a quarter (23%) of respondents aged between 18 and 34 with a workplace pension do not know how much their employer is paying into their occupational pension, according to research by Aegon. Its survey of 685 adults, including 380 employees who have a workplace pension, also found that 58% of millennial respondents think it is their employer’s responsibility to help them plan for retirement. […]

24 08, 2017

New Study Finds Public Employees Overwhelmingly Choose Pensions as Retirement Plan over Individual 401(k)-Type Accounts

2017-08-24T20:28:39-07:00August 24th, 2017|Categories: Pension Funding|Tags: , |

A new study finds that public sector employees with retirement plan choice overwhelmingly choose defined benefit (DB) pension plans over 401(k)-type defined contribution (DC) individual accounts. Among the eight states studied that offer employees such a choice, the DB pension take-up rates in 2015 were 80 percent or higher in six states. Two of the plans studied had pension take-up rates higher than 95 percent, while Florida and Michigan had take-up rates of 76 percent and 75 percent, respectively. [...]

15 08, 2017

U.S. Postal Service warns of $6.9B pension default

2017-08-15T16:57:42-07:00August 15th, 2017|Categories: Pension Funding|Tags: |

The U.S. Postal Service warned Thursday that it will likely default on up to $6.9 billion in payments for future retiree health and pension benefits for the fifth straight year, citing a coming cash crunch that could disrupt day-to-day mail delivery. The service said it expected cash balances to run low by October and to avoid bankruptcy would likely not make all of its payments as required under federal law. Postmaster General Megan Brennan stressed an urgent need for [...]

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