The latest Retirement Confidence Survey from the Employee Benefit Research Institute shows confidence in specific factors for retirement readiness is lower, and sources offer suggestions for how retirement plan sponsors and advisers can help.
This enables corporations to expense their contributions at a higher tax rate, according to Cerulli.
DC plan consultants surveyed by PIMCO offer suggestions for helping retirees with income, core investment menu design and other DC plan features.
Corporate plans are winding down as public plans are strengthening themselves for the long run.
Evidence mounts to show how cuts to public-employee pension benefits have reduced the ability of public-sector employers to compete with private-sector employers for skilled workers.
Despite two months in a row of funded status losses, most firms that track pension funding find the average funded status is still up for the year.
The goal is to reduce fees and administrative burdens for plan sponsors while providing better services for plan participants.
Institutions that track defined benefit (DB) plans’ funded ratios measured increases or decreases in funded status as high as 1%, but noted it could have been worse if not offset by higher liability discount rates.
The plan was frozen in 2007 and replaced with a 403(b) plan.
According to Justin Owens, director, Client Strategy & Research, Russell Investments, while total 2017 contributions were the single largest ever recorded, just as noteworthy was the contribution above requirements.
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.