Although the latest report from the NCHS show life expectancy at birth declined, mortality rates for the older population continue to support projections of longer life expectancy, The Segal Group notes.
“The world is moving toward big data, and thus far as an industry we haven’t been able to use big data in a meaningful way. We are now in the midst of a paradigm shift that will allow plan sponsors to make data-driven decisions in an entirely new way,” says Thomas Idzorek, with Morningstar Investment Management.
While January was a great month for defined benefit (DB) plan funded status, recent market volatility underscores how important risk management is, says Matt McDaniel, with Mercer.
Mercer offers its list of key priorities for defined benefit (DB) plan sponsors for 2018.
Improved governance with 403(b) plans has an added advantage, Mercer points out, as it also benefits plan participants in the form of improved performance and lower fees, thus leading to better financial outcomes.
In the fourth quarter of 2017, AICPA’s Personal Financial Satisfaction Index reached a record high in the 24 years the trade group has been conducting this survey, due to strong market gains and low unemployment.
Yet they also adopted more conservative investment assumptions, according to the National Conference on Public Employee Retirement Systems.
Sibson suggests that employers consider one or more of the following three metrics: replacement ratio, wealth accumulation target and retirement readiness grade.
In a followup interview with Jack Cohen, Association of BellTel Retirees chairman, he says his association and others warned the PBGC that risk transfers would harm the insurance system.
While research suggests the funded status of state and local pension plans is inching closer to that of state pension plans, data shows their funded status is still low.
Market returns, adoption of safe harbor plans and more education to participants can be attributed to this increase.
Most firms that track DB plan funded status estimated between 1% to 3% improvement for the year.
Michael A. Moran, with GSAM, says the firm expects voluntary contribution activity to continue into 2018, as defined benefit plan sponsors claim a deduction at their former, higher tax rate.
Aaron Friedman, national practice leader, tax-exempt, at Principal in West Palm Beach, Florida, says “small and mid-sized plans are very much in need of advisers because they don’t have dedicated human resources personnel or expertise on plan administration."
The idea is to put participants with lesser unfunded vested benefits (UVBs) in one plan, and those with greater UVBs in another.
“Plan sponsors that prioritize their goals and objectives strategically have the opportunity to both enhance participant outcomes and mitigate risks.” says Sarah Fitzmaurice, DC & Financial Wellness leader, Mercer.
In the years ahead, Corporate Insight expects a very strong focus on the issue of cybersecurity among retirement plan providers and investment managers, putting the impetus on plan sponsors to ensure they understand the evolving landscape.
The move is designed to protect pensions for Kroger associates who participate in the Central States Pension Fund, which is projected to go insolvent in 2025.
Nearly two-thirds (64%) of multiemployer plans are in the green zone, according to data from Segal Consulting.
Firms that track DB plan funding reported increases in the month ranging from 0.4% to 1.0%.