7 06, 2022

Investors put new weight behind ESG mandates

2022-06-07T13:58:17-07:00June 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?

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

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

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

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

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

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?

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

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

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

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

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

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

2022-04-22T16:13:53-07:00April 22nd, 2022|Categories: Economy|Tags: , , |

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

2022-04-21T14:41:41-07:00April 21st, 2022|Categories: Economy|Tags: , , |

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

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

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

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

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

2022-02-18T13:10:52-08:00February 18th, 2022|Categories: Defined Benefit Plans|Tags: , , |

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%

2022-02-17T08:17:20-08:00February 17th, 2022|Categories: Retirement|Tags: , , , |

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

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

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’

2022-02-04T11:57:15-08:00February 4th, 2022|Categories: Defined Benefit Plans|Tags: , , , |

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

2022-02-01T08:22:02-08:00February 1st, 2022|Categories: ESG|Tags: , |

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?

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

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

2022-01-25T10:57:29-08:00January 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

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, [...]

Go to Top