20 01, 2022

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

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

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

2022-01-17T10:56:08-08:00January 17th, 2022|Categories: Pension Funding|Tags: , |

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

2022-01-12T15:47:41-08:00January 12th, 2022|Categories: Defined Benefit Plans|Tags: |

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

2022-01-07T08:50:49-08:00January 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

2022-01-03T09:30:28-08:00January 3rd, 2022|Categories: SEC|Tags: , |

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

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

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

2021-12-02T08:45:29-08:00December 2nd, 2021|Categories: Pension Reform|Tags: , |

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

2021-11-22T15:45:21-08:00November 22nd, 2021|Categories: Economy|Tags: , |

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 [...]

22 11, 2021

Employers see retirement benefits as top attraction, retention tool

2021-11-22T15:43:29-08:00November 22nd, 2021|Categories: Retirement|Tags: , , |

By Lauren Bailey Source: Benefits Canada A majority of Canadian employers believe providing workplace retirement savings plans can improve employee attraction and retention, according to a survey by Maru Group Ltd. on behalf of the Healthcare of Ontario Pension Plan. The survey, which polled 800 Canadian employers, found 88 per cent of those that offer a defined benefit pension plan said it was “extremely important” or “very important” to their employee retention efforts, followed by 85 per cent of [...]

22 11, 2021

PBGC pension fund programs now on solid footing

2021-11-22T15:41:09-08:00November 22nd, 2021|Categories: PBGC|Tags: , |

By Brian Croce Source: Pensions & Investments The Pension Benefit Guaranty Corp.'s single-employer and multiemployer programs each had positive net funding positions at the end of the fiscal year for the first time in nearly two decades, according to the agency's fiscal year 2021 annual report. The long-troubled multiemployer program improved to a net funding position of $481 million at the end of fiscal year 2021, compared with a $63.7 billion shortfall at the end of the previous fiscal [...]

17 11, 2021

American Rescue Plan Act Turns Things Around for PBGC Multiemployer Plan Program

2021-11-17T09:09:00-08:00November 17th, 2021|Categories: PBGC|Tags: , |

By Rebecca Moore Source: Plan Sponsor The Pension Benefit Guaranty Corporation (PBGC) has released its Fiscal Year (FY) 2021 Annual Report, which shows its multiemployer plan insurance program has a positive net position of $481 million at the end of FY 2021—a sharp contrast to the program’s deficit of $63.7 billion at the end of FY 2020. The agency’s multiemployer plan program is now likely to remain solvent for more than 30 years, due to the enactment of the [...]

15 11, 2021

Better pensions for California transit workers? Biden administration targets state law

2021-11-15T12:33:54-08:00November 15th, 2021|Categories: Defined Benefit Plans|Tags: , |

By Wes Venteicher Source: The Sacramento Bee Public transit workers in California briefly benefited when the U.S. Labor Department challenged former Gov. Jerry Brown’s pension reform law eight years ago. They got to keep more generous retirement benefits for two years longer than other California public employees after the Obama administration’s Labor Department found Brown’s 2013 pension law ran afoul of federal protections. Read the full article

11 11, 2021

CalSTRS looks to expand scope of collaborative investing model

2021-11-11T08:42:42-08:00November 11th, 2021|Categories: Pension Funding|Tags: , |

By Arleen Jacobius Source: Pensions & Investments CalSTRS is moving to the next phase of its collaborative investment model that not only focuses on cutting costs but also boosting returns. Strategies will include profit-sharing arrangements and investing across asset classes in public and private assets, Scott Chan, deputy CIO, told the investment committee on Thursday. Read the full article

11 11, 2021

Americans Focusing on Retirement Planning When Making Job Decisions

2021-11-11T08:39:49-08:00November 11th, 2021|Categories: Retirement|Tags: , |

By DJ Shaw Source: Plan Sponsor A third of U.S. workers are considering a job change or retirement in the next 12 to 18 months, signaling the continuation of a tight labor market in 2022, according to a survey released today by Principal Financial Group. The survey results suggest employer benefits and retirement plan options will play a role in workers’ decisions. According to the survey, 12% of workers are looking to change jobs, 11% plan to retire or [...]

11 11, 2021

ESG becoming even greater focus for money managers, survey finds

2021-11-11T08:33:23-08:00November 11th, 2021|Categories: ESG|Tags: , |

By Rob Kozlowski Source: Pensions & Investments Global asset managers are expanding investment resources dedicated to ESG, and increasing numbers of firms are adding more ESG metrics to their investment processes, according to Russell Investments' seventh annual ESG survey. The latest survey of 369 asset managers representing $79.6 trillion in assets under management shows 82% of managers explicitly incorporate qualitative or quantitative ESG factor assessments into their investment processes, compared with 78% in last year's survey. The most growth [...]

5 11, 2021

Workers will soon find out how much guaranteed income their 401(k) could deliver in retirement

2021-11-05T16:48:56-07:00November 5th, 2021|Categories: 401(k)|Tags: , |

By Sarah O'Brien Source: CNBC It can be tricky figuring out how much income your retirement savings actually could deliver in your golden years. That may now become easier. As mandated in the 2019 Secure Act, 401(k) plan administrators will start providing illustrations on quarterly or annual statements showing an estimate of how much guaranteed lifetime income you could potentially get if the balance were annuitized. “The general intent here is to educate plan participants about how much their [...]

29 10, 2021

RBC: Canadian pension returns up slightly in Q3

2021-10-29T16:56:14-07:00October 29th, 2021|Categories: Defined Benefit Plans|Tags: , |

By Rob Kozlowski Source: Pensions & Investments Canadian corporate and public pension plans in the RBC Investor & Treasury Services universe saw a median gross return of 0.6% in the three months ended Sept. 30. A news release Friday said the nearly-flat median return was because of a negative market environment in September that counteracted the positive returns in July and August. Canadian equities returned a median gross 1.5%, while the S&P/TSX Composite index returned 0.2% for the quarter. [...]

29 10, 2021

Vast majority of investors consider ESG important

2021-10-29T16:54:40-07:00October 29th, 2021|Categories: ESG|Tags: |

By Hazel Bradford Source: Pensions & Investments Investors are increasingly factoring ESG into their investment decisions, according to a PricewaterhouseCoopers survey released Thursday. The PwC 2021 Global Investor ESG Survey found that 80% of those surveyed considered ESG an important factor. Nearly 70% thought it should be factored into executive compensation, with 59% saying that a company's lack of action on ESG issues would make them likely to vote against pay packages, and one-third already taking that action. For [...]

29 10, 2021

Alcoa purchases annuity to transfer $55 million in pension plan assets

2021-10-29T16:53:07-07:00October 29th, 2021|Categories: Economy|Tags: , |

By Rob Kozlowski Source: Pensions & Investments Alcoa Corp., Pittsburgh, agreed to purchase a group annuity contract to transfer $55 million in pension plan assets to an insurance company. The agreement, signed this month, transfers the benefit-paying responsibility for about 800 retirees and former employees in one of the company's pension plans in Suriname, the aluminum company disclosed in its 10-Q filing with the SEC. The transfer also moves $55 million in pension plan liabilities to the undisclosed insurer, [...]

28 10, 2021

Public-pension funding hits highest since 2007, powered by market returns

2021-10-28T16:51:39-07:00October 28th, 2021|Categories: Pension Funding|Tags: |

By Andrea Riquier Source: MarketWatch Public-pension funding surged in 2021 thanks to buoyant financial markets, taking funding levels to the highest in over a decade. As of June 30, 2021, the aggregate funded ratio of the 100 largest U.S. public pension plans is estimated at 85%, according to the 2021 Public Pension Funding Study from Milliman, an actuarial company, marking what the group calls “a stunning improvement” from 70% in 2020. It’s also the highest level of funding in [...]

25 10, 2021

How Do Pension Funds Work?

2021-10-25T10:16:46-07:00October 25th, 2021|Categories: Defined Benefit Plans|Tags: |

By Eric Whiteside Source: Investopedia For some years now, traditional pension plans, also known as pension funds, have been gradually disappearing from the private sector. Today, public sector employees, such as government workers, are the largest group with active and growing pension funds. How Pension Funds Work The most common type of traditional pension is a defined-benefit plan. After employees retire, they receive monthly benefits from the plan, based on a percentage of their average salary over their last [...]

21 10, 2021

Three reasons why pensions are portable

2021-10-21T15:53:11-07:00October 21st, 2021|Categories: Defined Benefit Plans|Tags: |

By Tristan Fitzpatrick Source: NPPC One of the biggest misunderstandings about public pensions is that if one leaves public service before they retire, then they cannot take their pension benefits with them. This belief is usually mentioned by those who say defined-contribution accounts like 401(k)s are somehow more “portable” than defined-benefit pensions. However, the truth is that public pensions are, in fact, reasonably portable. Here are three reasons why pensions offer a large amount of portability. 1. All plans [...]

20 10, 2021

These Are the World’s Best (And Worst) Pension Systems in 2021

2021-10-20T15:08:52-07:00October 20th, 2021|Categories: Pension Funding|Tags: , |

By Matthew Burgess Source: Bloomberg Iceland has the best pension system in the world, according to a global study that shines a light on how nations are preparing their aging populations for retirement. The country took the top spot in the Mercer CFA Institute Global Pension Index published Tuesday, drawing praise for being well governed and providing strong benefits to retirees, including a generous state pension. The Netherlands and Denmark came in second and third respectively after holding the [...]

19 10, 2021

Expert panel: Climate change putting spotlight on ESG issues for pension plans

2021-10-19T15:10:13-07:00October 19th, 2021|Categories: ESG|Tags: , , |

By Susan G. Seller Source: Benefits Canada The images of floods, forest fires and heat waves over the past few years is putting climate change front of mind for many, including pension plan sponsors and administrators. It’s become increasingly clear that environmental, social and governance factors are emerging as an important area of concern for pension plan administrators and, by extension, the boards and pension committees that exercise oversight over the investment of the assets of employer-sponsored pension plans. [...]

18 10, 2021

Middle Class U.S. Households Have Few Financial Assets

2021-10-18T15:17:15-07:00October 18th, 2021|Categories: Economy|Tags: , |

Source: National Institute on Retirement Security A new analysis finds that across generations, middle class households in the U.S. own few financial assets and the median amounts held fall far short of the assets needed to fund a secure retirement. In 2019, middle class Millennials owned only 14 percent of their generation’s financial assets. The numbers are even worse for middle class Gen Xers and Baby Boomers, which owned eight percent and six percent, respectively, of their generation’s financial [...]

13 10, 2021

Institutional investors expect headwinds in meeting return targets

2021-10-13T10:14:14-07:00October 13th, 2021|Categories: Pension Funding|Tags: |

By James Comtois Source: Pensions & Investments Institutional investors expect headwinds in their ability to outperform return targets, according to results of a survey conducted by Fidelity Investments. Despite respondents on average nearly doubling their expected required rate of return in 2020 — 12.3% actual vs. 6.3% required — only 54% of the 500 institutional investors Fidelity surveyed said they are confident that they will achieve their expected target rate of return over the next three years. When asked [...]

13 10, 2021

U.K. pensions will be greener and DC plans more consolidated, minister says

2021-10-13T10:11:25-07:00October 13th, 2021|Categories: Retirement|Tags: , |

By Hazel Bradford Source: Pensions & Investments U.K. pension funds are on a journey to be "safer, better and greener," and defined contribution plans are headed for consolidation, U.K. Minister for Pensions and Financial Inclusion Guy Opperman said Tuesday at the P&I World Pension Summit in The Hague. Last year, the U.K. was the first G-7 country to commit to mandatory climate disclosures under the Task Force on Climate-Related Financial Disclosures, and pension funds will have to disclose how [...]

13 10, 2021

Plan Sponsors Want Guaranteed Lifetime Income Options

2021-10-13T10:09:30-07:00October 13th, 2021|Categories: 401(k)|Tags: , |

By Brian Anderson Source: 401K Specialist According to new research released today by Allianz Life, retirement plan sponsors “overwhelmingly” see the value of guaranteed lifetime income options—and are now ready to begin offering these new choices in their plans almost two years post-SECURE Act. According to the new data, plan sponsors indicated that they believe offering a guaranteed lifetime income option is a wise move that will go over well with plan participants. Of those surveyed, 87% of plan sponsors believe [...]

7 10, 2021

ESG factors becoming a focus for real estate investors

2021-10-07T09:18:15-07:00October 7th, 2021|Categories: ESG|Tags: |

By Arleen Jacobius Source: Pensions & Investments While ESG factors play an important role in real estate managers' investment decisions, asset owners also are asking managers to look inward at their own firms' diversity and inclusion efforts. Gender and ethnic diversity is becoming a big issue for real estate managers, driven by some of the largest asset owners that do not think management firms are diverse enough and are calling on them for change, said Josh Herrenkohl, New York-based [...]

6 10, 2021

Appellate Court Rejects Use of Segal Blend in Calculating Withdrawal Liability

2021-10-06T11:41:02-07:00October 6th, 2021|Categories: Multiemployer Plans|Tags: , , , |

By Rebecca Moore Source: PlanSponsor The 6th U.S. Circuit Court of Appeals has weighed in on one case in which an employer that withdrew from a multiemployer pension plan challenged the use of the so-called “Segal Blend” when calculating the amount of withdrawal liability the member employer owed the plan. In the case Sofco Erectors Inc. v. Trustees of the Ohio Operating Engineers Pension Fund, the appellate court noted that the interest-rate assumption is critical in withdrawal-liability calculations. A [...]

23 09, 2021

State worker pension systems in best shape since 2008

2021-09-23T09:52:54-07:00September 23rd, 2021|Categories: Retirement|Tags: |

By Geoff Mulvihill Source: Associated Press Pension systems for state government workers across the U.S. are in their best shape since the Great Recession began more than a dozen years ago, according to a study released Tuesday. The Pew Charitable Trust report credits a booming stock market over the past year as well as states’ longer-term steps, which include boosting taxpayer contributions to public pension funds and reducing promised retirement benefits, particularly to newly hired workers. “The better decisions, [...]

23 09, 2021

PBGC’s multiemployer outlook greatly improves after help from Congress

2021-09-23T09:51:00-07:00September 23rd, 2021|Categories: PBGC|Tags: |

By Brian Croce Source: Pensions & Investments The Pension Benefit Guaranty Corp.'s multiemployer program outlook has substantially improved following passage of the American Rescue Plan Act, according to the agency's fiscal year 2020 annual report. Last year's report projected a very high likelihood of the program's insolvency by September 2025 and near certainty by September 2026. In the latest report, released Monday, the most pessimistic scenario projects the fund to go insolvent in fiscal year 2036, while optimistic scenarios [...]

30 08, 2021

Why the 401k Fails and What A ‘Better’ System Looks Like, According to Teresa Ghilarduci

2021-08-30T08:31:42-07:00August 30th, 2021|Categories: 401(k)|

By John Sullivan Source: 401K Specialist  Teresa Ghilarducci once called the 401k an immature, underdeveloped child that needs help over a mudpuddle to the curb when crossing a street. While we disagree, we love the imagery. A labor economist and nationally recognized expert in retirement security with The New School for Social Research, Ghilarducci is a consistent and prolific advocate for a better system, however defined. Read the full article

30 08, 2021

40% of 401(k) participants say fees a mystery, GAO reports

2021-08-30T08:29:09-07:00August 30th, 2021|Categories: 401(k)|Tags: , |

By Brian Croce Source: Pensions & Investments Almost 40% of 401(k) plan participants do not fully understand the fees they are paying, a Government Accountability Office report released Thursday found. Moreover, 41% of participants incorrectly believe that they do not pay any 401(k) plan fees, according to the report. The Department of Labor requires plans to provide participants with fee disclosures, but GAO found that 45% of participants are not able to use the information in disclosures to determine [...]

18 08, 2021

Milliman: Multiemployer pension funding rises to 92%

2021-08-18T16:29:06-07:00August 18th, 2021|Categories: Multiemployer Plans|Tags: , |

By Rob Kozlowski Source: Pensions & Investments The estimated aggregate funding ratio of multiemployer defined benefit plans in the U.S. reached 92% as of June 30, up from 88% at the end of 2020, according to a study from Milliman. The first six months of the year continued a strong market recovery that had already brought funding levels to their highest ratio since Dec. 31, 2007, when the level was 85%. The estimated investment return for Milliman's simplified portfolio [...]

18 08, 2021

Pandemic pushed an additional 1.7 million Americans into retirement

2021-08-18T16:27:13-07:00August 18th, 2021|Categories: Retirement|Tags: , |

By Stephanie Asymkos Source: Yahoo! Money The pandemic forced more older workers to retire — often before they were ready financially — a new study found, widening the country’s growing retirement inequality gap and leaving certain baby boomers vulnerable to poverty in their golden years. During the pandemic, an additional 1.7 million Americans retired earlier than what would have been expected during the normal times, according to a recent report from The New School’s Retirement Equity Lab. While the [...]

16 08, 2021

US. Pandemic Puts Secure Retirement at Greater Risk for Many

2021-08-16T08:01:33-07:00August 16th, 2021|Categories: Retirement|Tags: , |

Source: Pension Policy International The COVID-19 pandemic has had an outsize effect on people 50 and older: Not only did it impact older adults’ health more severely than younger ones, but it also forced many into early retirement and prompted others to take withdrawals from their savings earlier than they had planned. “The prospects of a secure retirement for millions of workers will be even more precarious following the pandemic, and more Americans of all ages will need to [...]

27 07, 2021

How to close the wealth gap from the bottom up

2021-07-27T13:40:40-07:00July 27th, 2021|Categories: Economy|Tags: |

Source: The Washington Post More taxation of capital gains and estates could help shrink the United States’ wealth gap from the top down. The gap must also be closed from the bottom up, by bolstering access to the three key ingredients of middle-class wealth: owner-occupied homes, which represented the majority of household wealth for most people in 2019; financial assets, such as stocks, whose value, measured by the Dow Jones industrial average, has increased sevenfold since 1989; and human [...]

22 07, 2021

CAAT Pension Plan brings on 55 more employers in first half of year

2021-07-22T14:50:13-07:00July 22nd, 2021|Categories: Multiemployer Plans|Tags: , , |

By Rob Kozlowski Source: Pensions & Investments Pension plan participants at 55 Canadian employers joined the C$15.8 billion ($12.7 billion) Colleges of Applied Arts and Technology Pension Plan, Toronto, in the first half of 2021. With those moves, more than 3,300 new participants joined CAAT's DBplus plan, spokeswoman Lindsay Grillet said in an email. The additions bring the total to 125 employers in 10 industries that have joined the CAAT Pension Plan. The plan, which was originally established for [...]

22 07, 2021

Now Is The Time To Re-Think Retirement Plan Conventional Wisdom

2021-07-22T14:48:10-07:00July 22nd, 2021|Categories: Retirement|Tags: |

By Dan Doonan Source: Forbes Retirement plan design can make or break an employee’s ability to maintain their standard of living in retirement. Over the past several decades, many private sector companies implemented a complete overhaul in retirement plan design, shifting from defined benefit pensions to 401(k)-style defined contribution accounts. Originally designed to supplement rather than replace pensions, 401(k) plans have become the primary employer-sponsored plan for many U.S. workers. This transition meant sacrificing a number of important features [...]

19 07, 2021

5 key questions on pensions

2021-07-19T13:53:05-07:00July 19th, 2021|Categories: Defined Benefit Plans|Tags: |

By: Jeffrey R. Smith Source: HR Reporter Employer-sponsored pension plans have shifted some of the responsibility for retirement saving to employees, but a supportive plan can be a good tool for recruitment and retention. Canadian HR Reporter spoke about pension plan strategies with Som Seif, founder and CEO of Purpose Investments in Toronto, which recently launched the Longevity Pension Fund. Q: How has an aging workforce affected employers’ approach to pension plans? A: “It’s one of the biggest social [...]

19 07, 2021

PBGC multiemployer rule gets mixed reviews

2021-07-19T09:10:25-07:00July 19th, 2021|Categories: PBGC|Tags: , |

By: Hazel Bradford Source: Pensions & Investments The Pension Benefit Guaranty Corp.'s interim final rule about how underfunded multiemployer plans can get special financial assistance is getting mixed reviews. The assistance was part of the American Rescue Plan Act of 2021 enacted in March and provides an estimated $94 billion in federal assistance grants for the most at-risk plans to pay benefits, if it will help them survive for 30 years. The interim final rule, issued July 9, provides [...]

9 07, 2021

PBGC and IRS Issue Guidance on Special Financial Assistance for Financially Troubled Multiemployer DB Pension Plans; Comments Requested

2021-07-09T15:17:41-07:00July 9th, 2021|Categories: Multiemployer Plans|Tags: , , , |

Source: IFEBP The Pension Benefit Guaranty Corporation (PBGC) and Internal Revenue Service (IRS) issued guidance on Special Financial Assistance (SFA) for financially troubled multiemployer defined benefit (DB) pension plans. PBGC issued an interim final rule implementing a new SFA Program. The American Rescue Plan Act of 2021 (ARPA) — passed by Congress and signed by President Biden on March 11, 2021 — contains provisions to provide an estimated $94 billion in assistance to eligible plans that are severely underfunded. Additionally, it assists [...]

7 07, 2021

Canadian DB pensions see improved funded position, investment returns

2021-07-07T09:03:28-07:00July 7th, 2021|Categories: Defined Benefit Plans|Tags: , |

Source: Benefits Canada The aggregate funded ratio for Canadian defined benefit pension plans in the S&P/TSX composite index increased from 94.8 per cent in the first quarter of 2021 to 95.6 per cent in the second quarter, according to a new report from Aon. It also found pension assets rose by four per cent during the same period. The rise was credited to positive returns on fixed income assets and continued strong equity market performance. However, long term Government of [...]

18 06, 2021

House passes ESG disclosure bill

2021-06-18T13:58:44-07:00June 18th, 2021|Categories: ESG|Tags: |

By Hazel Bradford Source: Pensions & Investments Legislation requiring public companies to disclose ESG metrics was narrowly approved by the House Wednesday. The proposed Corporate Governance Improvement and Investor Protection Act received no Republican support, leaving its prospects uncertain as it advances to the Senate for consideration. The White House supports the measure, saying in a policy statement that the legislation would make "important changes to the manner in which publicly traded companies account for and disclose certain activities [...]

18 06, 2021

Are we headed for a retirement crisis?

2021-06-18T13:56:55-07:00June 18th, 2021|Categories: Retirement|Tags: , |

By Jim Wilson Source: Canadian HR Reporter Two-thirds (67 per cent) of Canadians feel that the country is facing an emerging retirement crisis, according to a new report. Why? More than six in 10 (63 per cent) have not set aside anything for retirement in the past year, up by five per cent from data recorded in 2020. Plus, 65 per cent said that saving for retirement is prohibitively expensive, according to the Healthcare of Ontario Pension Plan (HOOPP). [...]

17 06, 2021

PBGC ‘To-Do’ List: Work on Benefits, Penalties and More

2021-06-17T16:55:39-07:00June 17th, 2021|Categories: PBGC|Tags: |

By John Iekel Source: ASPPA The Pension Benefit Guaranty Corporation (PBGC) in its spring regulatory agenda enumerates a variety of proposals and actions close to implementation that will address benefits payments, assistance, valuation assessments, penalties and more. Proposals The following proposed rules are on the PBGC’s radar screen. Valuation Assumptions and Methods. The PBGC proposes a rule on valuation assumptions and methods concerning interest and mortality assumptions for asset allocation in single-employer plans, and concerning mass withdrawal liability determination [...]

17 06, 2021

Canada’s largest pension funds come together at inaugural climate change event

2021-06-17T16:53:50-07:00June 17th, 2021|Categories: Defined Benefit Plans, Sustainable Investing|Tags: , |

Source: Benefits Canada Representatives from eight of Canada’s largest pension funds — known as the Maple Eight — participated in the first meeting of the Sustainable Finance Action Council last week. On June 11, representatives of the Alberta Investment Management Corp., the British Columbia Investment Management Corp., the Caisse de dépôt et placement du Québec, the Canada Pension Plan Investment Board, the Healthcare of Ontario Pension Plan, the Ontario Municipal Employees Retirement System, the Ontario Teachers’ Pension Plan, the [...]

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