9 07, 2020

Pension plans see rebound in second quarter

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

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

6 03, 2020

Safeway, Giant agree to guarantee pension payments for UFCW members

2020-03-06T09:19:36-08:00March 6th, 2020|Categories: Defined Benefit Plans|Tags: , , |

Members of two United Food & Commercial Workers locals in the Washington region reached a collective bargaining agreement with Safeway Inc. on Wednesday that guarantees full funding of pension benefits for current employees and retirees. A similar agreement was also reached with Giant Food of Maryland, which in February reached a tentative agreement. Union officials said that the more contentious Safeway agreement, ratified by local members hours before a planned strike, was one of very few agreements guaranteeing pensions. [...]

6 09, 2019

U.K. to seek feedback on retail price index used in calculating pension benefits

2019-09-06T14:20:35-07:00September 6th, 2019|Categories: Pension Funding|Tags: , , |

The U.K. government is planning a consultation in January on the future of the retail price index, a metric that defined benefit plans use to calculate pension benefits. Sajid Javid, the U.K.'s chancellor of the exchequer, as the country's finance minister is known, said Wednesday that because no index change can occur without a change in U.K. law and because of the government's current focus on delivering a Brexit plan, the government will not be in position to eliminate [...]

21 08, 2019

NIRS: No money saved for 4 states that shifted to DC from DB plans

2019-08-21T08:17:37-07:00August 21st, 2019|Categories: 401(k), Defined Benefit Plans|Tags: , |

Four states that shifted to defined contribution from defined benefit plans did not save money, said new and updated case studies from the National Institute on Retirement Security. NIRS researchers updated prior case studies on Alaska, Michigan and West Virginia and created a new study on Kentucky. All of the states have switched new employees to defined contribution-only accounts to deal with pension underfunding and rising costs. According to an NIRS report on the studies, the changes increased overall [...]

29 04, 2019

Employer Contributions Aid in DB Plan Funding Progress

2019-04-29T13:51:34-07:00April 29th, 2019|Categories: Defined Benefit Plans|Tags: , |

An analysis from the Society of Actuaries suggests the majority of defined benefit (DB) plan sponsors are doing a good job of making contributions that help reduce unfunded liabilities. The study compares employer contributions to single-employer DB plans to benchmarks for measuring whether pension plan contributions—absent other influences—reduced unfunded liabilities or met other benchmarks, such as regulatory requirements. The study considers five benchmarks that represent the contribution needed to: Satisfy the minimum required contribution (MRC) as defined by Internal [...]

2 02, 2018

Lockheed Martin to Contribute $5 Billion to Pension in 2018

2018-02-02T09:46:06-08:00February 2nd, 2018|Categories: Defined Benefit Plans|Tags: , |

In its 2017 full-year results, defense contractor Lockheed Martin said it will make contributions of $5 billion to its qualified defined benefit pension plans in 2018, including required and discretionary contributions. It is the largest announced voluntary pension contribution so far in 2018, and is one of the largest pension contributions in recent years. […]

13 10, 2016

Deficits Down in September, Improved Quarterly DB Funded Status

2016-10-13T21:21:23-07:00October 13th, 2016|Categories: Defined Benefit Plans|Tags: |

The estimated aggregate funding level of defined benefit (DB) pension plans sponsored by S&P 1500 companies remained low at 77% during September 2016, as discount rates increased and equity markets experienced mixed returns, according to Mercer. However, as of September 30, 2016, the estimated aggregate deficit of $551 billion represents a decrease of $19 billion as compared to the end of August 2016. Likewise, Wilshire Consulting found the aggregate funded ratio for U.S. corporate pension plans increased by 0.9 [...]

19 02, 2015

Tulsa proceeding cautiously on changing employee pension system

2015-02-19T23:11:37-08:00February 19th, 2015|Categories: Pension Reform|Tags: , , |

The Mayor’s Office is working to shore up the pension program for existing city employees before it attempts to change the system for new employees, officials say. Mayor Dewey Bartlett plans to ask the City Council to approve an ordinance change that would help ensure that the city’s $118 million pension obligation is paid off in 30 years or less, Mayoral Chief of Staff Jarred Brejcha said. […]

17 06, 2014

CalSTRS Commends the Legislature on Passage of AB 1469

2014-06-17T20:14:25-07:00June 17th, 2014|Categories: Retirement|Tags: , , , |

California State Teachers’ Retirement System (CalSTRS) Chief Executive Officer Jack Ehnes issued the following statement in response to the Legislature’s approval of Assembly Bill 1469, which provide a long-term funding plan for CalSTRS: “CalSTRS commends the Legislature for upholding its intent to enact a funding plan this year, as evidenced in the passage of AB 1469. The long-term funding solution set out in this historic legislation sets the Defined Benefit Program on a sustainable course, and ensures a secure retirement [...]

13 06, 2014

Pension plans in best position for seven years

2014-06-13T23:55:56-07:00June 13th, 2014|Categories: Pension Funding|Tags: , |

Britain’s biggest companies are nearing the best position to fund pension schemes since before the financial crisis, following a sudden reversal of fortunes for UK corporate pension plans, a study out today shows. Firms listed in the FTSE 350 are better placed to support their defined benefit pension schemes than at any time over the past seven years, according to the research from PwC. The company said the Pensions Support Index, which tracks levels of support from FTSE 350 [...]

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