Pension News – CORPaTH

23 09, 2022

A Sneaky Form of Climate Obstruction Hurts Pension Funds

CORPaTH2022-09-23T16:18:30-07:00September 23rd, 2022|Categories: Defined Benefit Plans|Tags: climate obstruction|

By Tobias Read Source: The New York Times In several Republican-led states, the officials who oversee pension funds for millions of state workers are being told, or may soon be told, to ignore the financial risks associated with a warming world. There’s something distinctly anti-free market about policymakers limiting investment professionals’ choices — and it’s putting the retirement savings of millions at risk. The Texas comptroller, Glenn Hegar, recently announced that 10 financial firms and 348 funds could be [...]

23 09, 2022

The U.S. retirement system gets a ‘C+’ grade, experts say — even though it’s worth $39 trillion. Here’s why

CORPaTH2022-09-23T16:16:41-07:00September 23rd, 2022|Categories: Retirement|Tags: retirement|

By Greg Iacurci Source: CNBC The U.S. retirement system may seem flush — yet it ranks poorly in relation to those in other developed nations. Collectively, Americans had more than $39 trillion in wealth earmarked for old age at the end of 2021, according to the Investment Company Institute. However, the U.S. places well outside the top 10 on various global retirement rankings from industry players, such as the Mercer CFA Institute Global Pension Index and Natixis Investment Managers [...]

7 09, 2022

World’s largest pension funds reach new $23.6 trillion record

CORPaTH2022-09-07T15:05:19-07:00September 7th, 2022|Categories: Pension Funding|Tags: Assets under management, WTW|

Source: WTW Assets under management (AuM) at the world’s top 300 pension funds increased by 8.9% to reach a new record, totaling $23.6 trillion in 2021, according to the annual research conducted by WTW’s Thinking Ahead Institute. The research highlights high-level trends in the pension fund industry and provides information on the changing characteristics of these funds. While total AuM has reached record highs, growth has slowed from 11.5% in 2020 to 8.9% in 2021. This was to be expected [...]

6 09, 2022

Public Funds Are Among Strongest Backers of ESG Resolutions

CORPaTH2022-09-06T16:46:04-07:00September 6th, 2022|Categories: ESG|Tags: esg, Public pension funds|

Source: AI-CIO.com Public pension funds strongly support environmental, social and governance shareholder resolutions, Morningstar data show. According to a Morningstar research report released this month, public pension funds’ average rate of support for ESG resolutions was 90% in 2021, compared with 85% of ESG-focused funds and 63% of general shareholders. “Basically, public pension funds’ voting behavior looks very similar to mutual funds and [exchange-traded funds] that focus on ESG issues,” says Janet Yang Rohr, director for multi-asset and alternatives [...]

22 08, 2022

Retirement plan portability a key issue, DOL roundtable speakers say

CORPaTH2022-08-22T14:33:01-07:00August 22nd, 2022|Categories: Retirement|Tags: dept of labor, workplace retirement plans|

By Margarida Correia Source: Pensions & Investments The need to make workplace retirement plans portable and more accessible emerged as one of the top themes in a spirited roundtable discussion the Department of Labor hosted Monday in New York with legislators, labor leaders, investment fund managers, educators and other industry stakeholders. "Every single American worker should be able to retire with security," Labor Secretary Marty Walsh said. "No one should have to worry about outliving their money and living [...]

22 08, 2022

Retirement Industry People Moves

CORPaTH2022-08-22T09:03:21-07:00August 22nd, 2022|Categories: Retirement|Tags: schroders|

By DJ Shaw Source: Plan Sponsor Schroders Announces Strategic Changes to U.S. Distribution Team Global asset manager Schroders has announced new hires and leadership changes to the American distribution team. Tiffani Potesta will be taking on the role of head of U.S. distribution, overseeing strategy and implementation for distribution across regions. Potesta will continue serving in her current role as chief strategy officer, in which she oversees marketing, product and sustainability. Mike Swinney has joined Schroders as consultant relations director, [...]

22 08, 2022

Market Cynicism Has Increased Retirement Anxiety

CORPaTH2022-08-22T09:00:20-07:00August 22nd, 2022|Categories: Retirement|Tags: retirement anxiety|

By Noah Zuss Source: Plan Sponsor Amid heighted pessimism about financial markets and global political tensions, Americans are increasingly worried about the effects to their retirement savings, according to research from the Allianz Life Insurance Company of North America. The “2022 Q1 Quarterly Market Perceptions Study” found that 47% of respondents said the economy will improve in 2022, down from 54% in 2021’s first quarter and 66% in 2022’s fourth quarter, while 79% are concerned that current world tensions will cause [...]

16 08, 2022

America’s $7 Trillion Retirement Crisis Is Only Getting Worse

CORPaTH2022-08-16T10:47:46-07:00August 16th, 2022|Categories: Retirement|Tags: retirement crisis|

By Suzanne Woolley Source: Bloomberg Americans have been warned for years of an impending retirement crisis. Yet the situation is getting worse. Even when everything was going right — inflation was nonexistent, interest rates were low and stocks were in an extended bull market — there was a multi-trillion dollar savings shortfall. Then came a pandemic, war in Europe, decades-high inflation, the fastest rate-hiking cycle since the early 1980s and fears of a recession. The resulting market turmoil erased some $3.4 trillion from 401(k)s and IRAs [...]

16 08, 2022

How Unions Pave the Path to Elder Security

CORPaTH2022-08-16T08:58:53-07:00August 16th, 2022|Categories: Retirement|Tags: retirement, Retirement Security, unions|

Source: American Society on Aging Despite America’s vast wealth, more than 15 million older Americans—one-third of people ages 65 and older—are “economically insecure,” meaning they are poor or near-poor, according to the National Council on Aging. Half of all Black and Latinx people ages 65 and older are in this precarious situation, and older women are especially likely to be poor. These financially fragile older Americans “struggle with rising housing and health care bills, inadequate nutrition, lack of access [...]

16 08, 2022

Workers Worry About Retirement Income as Prices Spike

CORPaTH2022-08-16T08:55:58-07:00August 16th, 2022|Categories: Retirement|Tags: anxiety, retirement income|

By Noah Zuss Source: Plan Sponsor Market volatility and rising prices are driving two-thirds of workers surveyed to feel more anxiety about their retirement income, the Nationwide Retirement Institute Social Security Consumer Survey shows. The concerns have led to a 10 percentage-point spike in anxiety among those surveyed from 2021, the survey found. Highlighting workers’ worries about retirement income, individuals are also anxious about Social Security, Nationwide found. Across generations, 70% of workers worry that Social Security will run [...]

16 08, 2022

PBGC Final Rule on Multiemployer SFA: Solvency Through 2051

CORPaTH2022-08-16T08:54:02-07:00August 16th, 2022|Categories: Uncategorized|

Source: The Segal Group On July 6, 2022, the PBGC released a final rule on the multiemployer Special Financial Assistance (SFA) program, which was created by the American Rescue Plan Act (ARPA). The final rule makes significant changes to key provisions in the 2021 interim final rule (IFR) to enable eligible plans, after receiving SFA, to pay all benefits and expenses due through 2051. Trustees of plans who are considering or revisiting the decision of whether to apply for [...]

16 08, 2022

Defined Benefit Plans May Have New Life

CORPaTH2022-08-16T08:48:31-07:00August 16th, 2022|Categories: Defined Benefit Plans|Tags: arpa, hybrid pension plan|

By Noah Zuss Source: Plan Sponsor Defined benefit plans, the dinosaurs of the retirement world, may once again roam the private-sector benefits landscape, according to retirement industry veterans with pension actuarial expertise. For plan sponsors with a frozen defined benefit plan, it could be a good time to consider unfreezing, says Zorast Wadia, principal and consulting actuary, Milliman. Regulatory relief from Congress in the American Rescue Plan Act, economic and labor market conditions, hybrid pension plan designs and the [...]

16 08, 2022

U.K. pension regulator calling on plan sponsors to support pension scam prevention strategy

CORPaTH2022-08-16T08:46:33-07:00August 16th, 2022|Categories: Pension Funding|Tags: pension scam prevention, The Pension Regulator, uk|

Source: Benefits Canada The Pension Regulator, the U.K. government body that oversees defined benefit pension plans, is calling on plan sponsors to help advance a three-pronged strategy to fight pension fraud. “Over many years, we have worked to prevent savers’ losses and put fraudsters in prison: running large-scale public awareness campaigns, leading a multi-agency response to the threat through [the pension scams action group]. . . . But the truth is, we must all do more to combat pension [...]

8 08, 2022

Plan Sponsors Are Exploring Renewed Pensions

CORPaTH2022-08-08T15:21:50-07:00August 8th, 2022|Categories: Economy|Tags: pensions, work force|

By Noah Zuss Source: Plan Sponsor In an employer’s battle to attract and retain the best employees, enhanced workplace benefits and robust retirement plans are ammunition. According to Jonathan Price, senior vice president and national retirement practice leader at Segal, employers that recognize the myriad financial challenges workers face—from everyday financial wellness habits to short-term budgeting and long-term retirement planning—are enhancing retirement and workplace benefits to recruit and retain workers, and help current employees feel more financially secure. “What [...]

4 08, 2022

Baseline Expectations for Asset Managers on Fundamental Labour Rights

CORPaTH2022-08-04T16:27:13-07:00August 4th, 2022|Categories: Pension Funding|Tags: asset managers|

Source: Committee on Workers' Capital The Baseline Expectations for Asset Managers on Fundamental Labour Rights are geared at helping CWC network participants hold the asset managers they contract accountable on fundamental labour rights. The CWC Baseline Expectations are divided into four categories from which to assess an asset manager’s level of commitment to respecting and upholding fundamental labour rights: (1) Stewardship framework (2) Stewardship in public equities (including proxy voting and engagement) (3) stewardship in private markets (4) Policy [...]

4 08, 2022

Protecting Pensions and ESG Risks

CORPaTH2022-08-04T16:25:39-07:00August 4th, 2022|Categories: ESG|Tags: esg, pensions|

By Tim Hennessey Source: IFEBP As the global impact of climate change grows, environmental, social and governance (ESG) factors have become a core consideration for pension funds. ESG issues and concerns can no longer be relegated to debates among pension fiduciaries about values investing or investment returns and instead require a holistic approach, author Janis Sarra noted in her article “Protecting Pensions Through Effective Governance of Climate and ESG Risks” in the July/August issue of Plans & Trusts. Sarra, [...]

27 07, 2022

CalSTRS gets pushback on collaborative investing

CORPaTH2022-07-27T11:33:14-07:00July 27th, 2022|Categories: Pension Funding|Tags: CALSTRS|

By Arleen Jacobius Source: Pensions & Investments CalSTRS' ambitious collaborative model is starting to experience growing pains. Staff members of the $314.8 billion West Sacramento-based pension fund, the nation's second-largest public pension plan, are starting to get some pushback from their board as they work to implement version 2.0 of the model that will result in plan officials having more control over the fund's investments. Designed to reduce costs, control risk and boost returns, CalSTRS' collaborative model is a [...]

27 07, 2022

U.K. pushes pension trustees to focus on the ‘S’ in ESG, with help

CORPaTH2022-07-27T11:31:00-07:00July 27th, 2022|Categories: ESG|Tags: esg, uk|

By Hazel Bradford Source: Pensions & Investments The U.K. government wants to make sure that pension fund trustees are giving enough attention to social factors that could have financial implications, and is setting up a task force to help. "The 'S' of ESG is one area in which the risk management of pension schemes can be strengthened," said Pensions Minister Guy Opperman, the longest serving parliamentary undersecretary of state for pensions and financial inclusion, in a statement on the [...]

15 07, 2022

Global Trade Unions Release Baseline Expectations for Asset Managers on Fundamental Labour Rights

CORPaTH2022-07-15T16:38:14-07:00July 15th, 2022|Categories: Economy|Tags: asset managers, esg|

Source: Committee on Workers' Capital The Global Unions’ Committee on Workers’ Capital (CWC) has released its Baseline Expectations for Asset Managers on Fundamental Labour Rights (“CWC Baseline Expectations”). Developed by trade unions and pension fund board members as part of the Asset Manager Accountability Initiative, the CWC Baseline Expectations will help asset owners hold the asset managers they contract accountable on fundamental labour rights. Global asset managers invest capital on behalf of workers’ retirement savings funds. Pension fund trustees [...]

8 07, 2022

Segal Marco acquires Milliman’s San Francisco investment consulting practice

CORPaTH2022-07-08T11:29:22-07:00July 8th, 2022|Categories: Defined Benefit Plans|Tags: milliman, Segal Marco Advisors|

By Palash Ghosh Source: Pensions & Investments Investment consultant Segal Marco Advisors acquired Milliman's San Francisco investment consulting practice. The transaction marks Segal Marco's third acquisition, the firm said in a news release Thursday. The acquisition increases Segal Marco's "footprint in the public sector and adds additional endowments and foundations to its client roster as the firm continues to grow across various lines of business," the news release said. Read the full article

8 07, 2022

PBGC’s multiemployer assistance rule loosens investing restrictions

CORPaTH2022-07-08T11:10:04-07:00July 8th, 2022|Categories: PBGC|Tags: American Rescue Plan Act, Special Financial Assistance Program|

By Brian Croce Source: Pensions & Investments The Pension Benefit Guaranty Corp. on Wednesday unveiled a final rule for a federal assistance program that aids struggling multiemployer plans. The Special Financial Assistance Program, created by the American Rescue Plan Act that Democrats passed in March 2021, was designed to shore up struggling multiemployer pension plans through 2051. The PBGC estimates the total cost will range from $74 billion to $91 billion. Under the program, a multiemployer plan is eligible for assistance [...]

8 07, 2022

Biden’s Ohio visit spotlights effort to rescue troubled MEPPs

CORPaTH2022-07-08T11:07:55-07:00July 8th, 2022|Categories: Pension Funding|Tags: multiemployer funds, Ohio, pension funding|

Source: Benefits Canada Reassuring frustrated blue-collar voters, U.S. President Joe Biden on Wednesday visited Ohio iron workers to highlight federal action to shore up troubled pension funding for millions now on the job or retired — and to make his political case that he’s been a champion for workers in the White House. Biden’s speech at a Cleveland high school showcased a final rule tied to his US$1.9 trillion coronavirus pandemic relief package from last year. The rule allows [...]

29 06, 2022

Pensions & Retirement Security

CORPaTH2022-06-29T16:18:32-07:00June 29th, 2022|Categories: Retirement|Tags: DB Plans, public educators|

Source: National Education Association All educators deserve the ability to retire with financial security. Pensions provide educators with a guaranteed, reliable source of income in retirement. They are also a tool to attract and retain qualified, experienced educators to the profession. Schools and students succeed when talented young people in search of a challenging career are recruited into the profession, and stay in it for the long term. Pensions help do that. Pensions provide excellent retirement security. A traditional pension [...]

29 06, 2022

Gender gaps in retirement readiness and financial know-how persist, despite strides made by women in last 50 years

CORPaTH2022-06-29T16:14:43-07:00June 29th, 2022|Categories: Economy|Tags: gender pay gaps|

By Sarah O'Brien Source: CNBC Despite the economic and professional gains made by women over the last 50 years, gender gaps persist — and not just in rate of pay. Retirement readiness and financial know-how are key areas with notable gaps, according to two studies recently released by the TIAA Institute. For example, among workers in TIAA’s system, men contributed a median $8,271 to their workplace retirement plan in 2020, compared with $5,994 for women. While that 27% gap [...]

7 06, 2022

Investors put new weight behind ESG mandates

CORPaTH2022-06-07T13:58:17-07:00June 7th, 2022|Categories: Uncategorized|

By Bailey McCann Source: Pensions & Investments Institutional investors have focused on ESG for many years, but the industry may be reaching a tipping point in terms of the specificity and sophistication of ESG mandates. Against a backdrop of increasingly hard to ignore climate risks and social unrest brought on by the COVID-19 pandemic, the death of George Floyd and the war in Ukraine, institutions are moving away from passive exclusion strategies and leveraging new data to engage with [...]

7 06, 2022

Are Millennials on Track for a Secure Retirement?

CORPaTH2022-06-07T13:56:44-07:00June 7th, 2022|Categories: Retirement|Tags: Millennials, secure retirement|

By Ed McCarthy Source: Plan Sponsor Millennials — those born between 1981 and 1996 — are now the largest demographic group by age in the U.S. The oldest Millennials have reached age 41, which lands them in the decade when adequate retirement savings become more important. So how well are they doing with their retirement plans? Multiple Challenges Angie O’Leary, head of wealth planning with RBC Wealth Management–U.S. in Minneapolis-St. Paul, says that Millennials have multiple financial worries that can create [...]

25 05, 2022

SEC proposes additional ESG disclosures for investment advisers, funds

CORPaTH2022-05-25T12:50:39-07:00May 25th, 2022|Categories: ESG|Tags: esg, sec|

By Brian Croce Source: Pensions & Investments The Securities and Exchange Commission on Wednesday approved a rule proposal that would require investment advisers and fund managers to disclose additional information on ESG strategies in fund prospectuses, annual reports and adviser brochures. In a 3-1 vote, with the commission's lone Republican, Hester M. Peirce, dissenting, the SEC proposed amendments to rules and disclosure forms that aim to promote consistent, comparable and reliable information for investors concerning funds' and advisers' incorporation [...]

4 05, 2022

Vermont governor vetoes pension reform bill, but override likely

CORPaTH2022-05-04T08:35:37-07:00May 4th, 2022|Categories: Pension Reform|Tags: Pension Reform, vermont|

By Margarida Correia Source: Pensions & Investments Vermont Gov. Phil Scott has vetoed legislation unanimously passed in the House and Senate to reform the state's pension systems for teachers and state employees. In a letter to lawmakers on Monday, Mr. Scott rebuked the bill, saying it "does not include enough structural change to solve the enormous unfunded liability problems the state faces." He raised concerns that despite adding $250 million in additional taxpayer money, the state in several years [...]

3 05, 2022

Could raising rates be THE antidote?

CORPaTH2022-05-03T15:44:46-07:00May 3rd, 2022|Categories: Defined Benefit Plans|Tags: raising rates|

By Russ Kamp Source: Kamp Consulting Blog As everyone knows, corporate defined benefit (DB) plans have been disappearing like the dinosaur. However, rising US interest rates following a 39-year bond bull market might just prove to be the antidote needed to stem this tide. Milliman’s 2022 Pension Funding Study is out, and as usual, it provides a great overview of the top 100 corporate plans (ranked by plan assets). Corporate funding has improved dramatically in the last several years [...]

3 05, 2022

Jaw-Dropping Stats About the State of Retirement in America

CORPaTH2022-05-03T13:41:57-07:00May 3rd, 2022|Categories: Retirement|Tags: retirement|

By Jordan Rosenfeld Source: Yahoo! Finance Many Americans spend their lives working hard and dreaming of the day they can finally retire. But planning for retirement requires more than dreaming -- it means being strategic and focused on saving money, among other things. The average age of retirement for Americans is 66, according to a Gallup poll, which is up from age 60 in the 1990s. With Americans living an average of 78.7 years, that's a good 12 or [...]

2 05, 2022

Retirees sue UPS alleging company shortchanged pension benefits

CORPaTH2022-05-02T13:55:25-07:00May 2nd, 2022|Categories: Retirement|Tags: pension benefits, ups|

By Robert Steyer Source: Pensions & Investments Eight former employees in two defined benefit plans run by United Parcel Service of America Inc. have sued the company and plan fiduciaries alleging they were shortchanged in their retirement benefits because the plans used out-of-date mortality tables to calculate the benefits. They allege that retirees who took joint and survivor annuity benefits instead of a single life annuity didn't receive the actuarial equivalent of the SLA, the most common annuity for [...]

22 04, 2022

China’s State Council outlines third pillar private pension framework

CORPaTH2022-04-22T16:13:53-07:00April 22nd, 2022|Categories: Economy|Tags: china, China's State Council, voluntary private pension system|

By Douglas Appell Source: Pensions & Investments China's State Council on Thursday unveiled the outlines of a long-awaited framework for a voluntary private pension system as the third pillar of the country's retirement safety net. Under the plan, participants will be able to contribute a maximum of 12,000 yuan ($1,885) a year to personal pension accounts, with preferential tax policies to encourage participation. The scale of the coming tax breaks wasn't specified. An announcement on the China Securities Regulatory [...]

21 04, 2022

Health and retirement benefits jump as key reasons employees join or stay with employer

CORPaTH2022-04-21T14:41:41-07:00April 21st, 2022|Categories: Economy|Tags: health benefits, labor market, retirement benefits|

Source: Yahoo! With the tight labor market showing little sign of abating, the importance of health and retirement benefits to attract and keep workers has soared to its highest level in a decade. Additionally, the number of employees willing to pay for more generous benefits has rebounded following a dip during the pandemic. These are among the key findings in a survey of more than 9,600 U.S. employees by WTW (Willis Towers Watson), a leading global advisory, broking and [...]

5 04, 2022

Average Dutch pension funding ratio reaches 10-year high

CORPaTH2022-04-05T09:23:25-07:00April 5th, 2022|Categories: Defined Benefit Plans|Tags: dutch pensions|

By Sophie Smith Source: European Pensions The average funding ratio for Dutch pension funds increased from 114 per cent to 120 per cent in March, the highest level in more than 10 years, according to analysis from Aon. The provider's Pension Thermometer revealed that equities and commodities had also risen sharply over the past month, despite global tensions and uncertainty, which compensated for the decline in fixed income portfolios. In addition to this, Aon flagged that interest rates rose [...]

1 03, 2022

U.S. Pension Funds Scramble to Figure Out What to Do With Russian Investments

CORPaTH2022-03-01T12:37:34-08:00March 1st, 2022|Categories: Defined Benefit Plans|Tags: russia, russian investments|

Source: AI-CIO.com The pressure to divest from Russian investments is everywhere. Both from an environmental, social and governance perspective and a financially prudent one, Russian assets are extremely high risk right now. But many of the United States’ largest pension funds still have assets in the country, making them vulnerable to even further financial downturn as the war with Ukraine wages on. Moscow’s stock market is already amidst one of its worst crashes in history. The Russian Trade Index [...]

18 02, 2022

Majority of Ontario’s DB pension plans more than fully funded

CORPaTH2022-02-18T13:10:52-08:00February 18th, 2022|Categories: Defined Benefit Plans|Tags: canada, Ontario, pension funding|

Source: Benefits Canada The average Ontario defined benefit pension plan is in the best funded position since December 2009, according to the Financial Services Regulatory Authority of Ontario’s latest quarterly solvency report. It found 81 per cent DB plans had a solvency ratio greater than 100 per cent at the end of 2021, compared to 67 per cent at the end of the third quarter of 2021 and 45 per cent in the last quarter of 2020. In addition, [...]

17 02, 2022

A monumental year pushes assets up 17%

CORPaTH2022-02-17T08:17:20-08:00February 17th, 2022|Categories: Retirement|Tags: COVID-19, investments, private equity, public equity|

By Christine Williamson Source: Pensions & Investments The 1,000 largest U.S. retirement plans had a banner year, propelled in large part by strong returns in public and private equity and other alternative investment strategies, as well as from higher contributions to defined benefit and defined contribution plans. In the year ended Sept. 30, aggregate assets of the 1,000 largest U.S. retirement funds rose 16.9% to $14.13 trillion, a big improvement from the previous year when assets managed to rise [...]

7 02, 2022

City of San Diego Will Retroactively Replace Thousands of Employees’ DC Plans With Pensions

CORPaTH2022-02-07T15:57:10-08:00February 7th, 2022|Categories: Defined Benefit Plans|Tags: DB Plans, san diego|

By Anna Gordon Source: AI-CIO.com The city of San Diego will be offering retroactive defined benefit (DB) pension plans to thousands of city employees who were previously only offered defined contribution (DC) 401(k)-style plans. The decision comes after the California Supreme Court overturned 2012’s Proposition B, a law that was passed after being voted on by the public. Proposition B shifted all city employees except police officers away from pensions to DC plans. The law was in effect from [...]

4 02, 2022

Typical DB pension scheme can fund 98.4% of benefits in ‘new high’

CORPaTH2022-02-04T11:57:15-08:00February 4th, 2022|Categories: Defined Benefit Plans|Tags: db schemes, pension funding, Pension Health, uk|

By Jack Gray Source: Pensions Age The health of defined benefit (DB) schemes in the UK reached a “new high” in Q4 2021, with the typical scheme expected to be able to fund 98.4 per cent of accrued pension benefits, according to Legal & General Investment Management (LGIM). The typical scheme being able to fund 98.4 per cent of accrued benefits, as at 31 December 2021, was 0.1 percentage points higher than the 98.3 per cent figure recorded at [...]

1 02, 2022

Institutions widely support DOL’s proposed ESG rule

CORPaTH2022-02-01T08:22:02-08:00February 1st, 2022|Categories: ESG|Tags: dept of labor, esg|

By Brian Croce Source: Pensions & Investments A majority of institutions support a proposed rule from the Department of Labor that would explicitly permit retirement plan fiduciaries to consider climate change and other environmental, social and governance factors when selecting investments and exercising shareholder rights, according to a new report examining comment letters. The report, published Tuesday by the Ceres Accelerator for Sustainable Capital Markets, US SIF: The Forum for Sustainable and Responsible Investment and Environmental Defense Fund, found [...]

25 01, 2022

DC Plans: Cost Savings After All?

CORPaTH2022-01-25T10:59:49-08:00January 25th, 2022|Categories: 401(k)|Tags: DC Plans|

By John Iekel Source: American Society of Pension Professionals & Actuaries Defined contribution plans have outstripped defined benefit plans in number of accounts, assets, employers offering them and participants. But a recent study that examines the cost of both kinds of plans challenges the notion that bigger is synonymous with better. In “A Better Bang for the Buck 3.0: Post-Retirement Experience Drives Pension Cost Advantage,” National Institute for Retirement Security (NIRS) Executive Director Dan Doonan and Pension Trustee Advisors [...]

25 01, 2022

The Multiemployer Retirement Plan Landscape: 10 DB Plan Takeaways

CORPaTH2022-01-25T10:57:29-08:00January 25th, 2022|Categories: Uncategorized|

By Justin Held Source: IFEBP According to the most recent data from The Multiemployer Retirement Plan Landscape: A Fifteen-Year Look (2004-2018), demographic trends in multiemployer plans have become less favorable as the number of actively working participants have decreased relative to the number of inactive and retired participants. However, plan trustees have made difficult decisions to improve plan funding, and financial markets have recovered somewhat from the 2008 collapse. Due to these actions, the majority of multiemployer defined benefit [...]

20 01, 2022

Pension plans cheaper overall than 401(k)s, researchers find

CORPaTH2022-01-20T10:47:21-08:00January 20th, 2022|Categories: 401(k), Defined Benefit Plans|Tags: 401(k), DB Plans|

By Emile Hallez Source: Investment News A pension research group has a message for employers: The switch from defined-benefit plans to 401(k)s has made retirement saving more expensive. That conclusion takes into account the costs borne by both employers and employees. Switching to a defined-contribution plan can of course save companies money, but the overall cost of the benefit increases, according to the National Institute on Retirement Security. The nonprofit this month published its third iteration of a paper [...]

17 01, 2022

Big pensions are nearly 100% funded, the healthiest they’ve been since 2008 financial crisis

CORPaTH2022-01-17T10:56:08-08:00January 17th, 2022|Categories: Pension Funding|Tags: pension funding, public pensions|

By Greg Iacurci Source: CNBC The pension plans of big U.S. companies haven’t looked this good since before the 2008 financial crisis — and that’s good news for workers and employers. A pension’s “funded” status is a core gauge of its health. It’s a measure of plan assets relative to liabilities (how much money the plan needs to pay future income). Pensions less than 100% funded don’t have enough money on hand to meet future obligations to retirees. The [...]

12 01, 2022

After years of recovery, corporate plans near full funding

CORPaTH2022-01-12T15:47:41-08:00January 12th, 2022|Categories: Defined Benefit Plans|Tags: corporate defined benefit plans|

By Rob Kozlowski Source: Pensions & Investments The funded status of U.S. corporate defined benefit plans has improved to levels not seen since before the financial crisis over a decade ago, better positioning their sponsors to execute risk mitigation strategies. Estimates from multiple investment consultants and money managers show the aggregate funding ratio for U.S. corporate DB plans exceeded 95% as of Dec. 31, the best showing since before the financial crisis of 2008. Read the full article

7 01, 2022

401(k) Retirement Accounts Substantially More Costly than Pension Plans, According to New Analysis from the National Institute on Retirement Security

CORPaTH2022-01-07T08:50:49-08:00January 7th, 2022|Categories: Uncategorized|

Source: National Institute on Retirement Security A new analysis finds that defined benefit (DB) pension plans offer substantial cost advantages over 401(k)-style defined contribution (DC) accounts. A typical pension has a 49 percent cost advantage as compared to a typical DC account, with the cost advantages stemming from longevity risk pooling, higher investment returns, and optimally balanced investment portfolios. The analysis also indicates that about four-fifths of the cost difference occurs during post-retirement years. Once retired, individuals typically experience [...]

3 01, 2022

Union letter to SEC on Private Equity Oversight

CORPaTH2022-01-03T09:30:28-08:00January 3rd, 2022|Categories: SEC|Tags: Private Equity Oversight, sec|

Source: National Education Association DEAR CHAIRMAN GENSLER: On behalf of our collective 8.5 million members, we congratulate you on your confirmation as Chairman of the Securities and Exchange Commission (SEC or Commission). Members of our unions serve as trustees for the vast majority of large public pension funds throughout the country. As stewards for the retirement assets of millions of public sector workers, they look forward to your efforts to increase transparency and accountability in the capital markets. As [...]

3 01, 2022

Karen Ferguson, Fighter for Pension Rights, Dies at 80

CORPaTH2022-01-03T09:28:18-08:00January 3rd, 2022|Categories: Pension Funding|Tags: nader raider, ralph nader|

By Katharine Seelye Source: The New York Times In the early 1970s, Karen Ferguson was a Nader Raider, one of a legion of young public-interest lawyers who flocked to Washington to work for Ralph Nader, the consumer advocate and scourge of corporate America. Mr. Nader would periodically gather the Raiders in a circle and read off a list of topics or little-examined government agencies to be investigated; the lawyers were to raise their hand when a subject piqued their [...]

2 12, 2021

44% of U.S. pension plan sponsors set to review, renegotiate fees

CORPaTH2021-12-02T08:45:29-08:00December 2nd, 2021|Categories: Pension Reform|Tags: management fees, pension plan sponsors|

Source: Benefits Canada Nearly half (44 per cent) of pension plan sponsors in the U.S. said they intend to review and/or renegotiate their plan’s management fees over the next one to two years, whether it’s custody fees (27 per cent) or investment management fees (17 per cent), according to a survey by consulting firm Callan. The survey, which polled more than 160 U.S. organizations representing 194 plans with more than US$975 billion in assets under management, found the average [...]

22 11, 2021

Public-Sector Pensions Help Drive Canadian Economy

CORPaTH2021-11-22T15:45:21-08:00November 22nd, 2021|Categories: Economy|Tags: canada, Canadian public pension funds|

Source: AI-CIO.com Canadian public pension funds are proving to be an important driver of the country’s economy, contributing more than 877,100 jobs and over C$82 billion (US$65.5 billion), or 3.6%, of its gross domestic product (GDP) annually, according to a recent report from the Canadian Centre for Economic Analysis (CANCEA). The report found that through the economic activity supported by spending their pension incomes, retired public pension members alone support more than 794,000 jobs and C$74 billion of Canada’s [...]