“The pattern of improvement paused last month owing to a dip in discount rates, but aggregate funded status remains near a four-year high as the long bull market continues to persist,” says Matt McDaniel, a partner in Mercer’s US Wealth business.
Bing Waldert, a managing director with Cerulli Associates, says, "converting the 401(k) plan to an income platform is a step in taking DB [defined benefit] market experience and applying it to the 401(k) market.”
The plan to adopt a fee-leveling approach and rebate revenue sharing to participants comes as many institutions of higher learning face lawsuits challenging their 403(b) plan fees.
According to MetLife, the pension risk transfer (PRT) agreement involves pension obligations of $6 billion.
Firms that track defined benefit (DB) plan funded ratios also noted that slight gains in equity markets improved plans’ funded status during the month.
New DCIIA research put together in concert with a large group of retirement industry service providers highlights the crucial role plan design plays in terms of participants' decumulation decisions.
“A primary driver of the improvement in the funding ratio was the increase in global equity values for the 12-month period ending June 30, 2017,” notes Ned McGuire, managing director and a member of the Pension Risk Solutions Group of Wilshire Consulting.
“Internal controls should be part of a plan sponsor’s day-to-day operations,” says a partner at CPAs & Advisors, speaking at the Plan Sponsor Council of America National Conference.
Speaking at the Plan Sponsor Council of America (PSCA) 71st Annual National Conference, Brodie Wood, SVP of healthcare, education and not-for-profit markets at Transamerica Retirement Solutions, discussed the efficiencies and benefits a closed MEP can offer not-for-profit 403(b) plans.
The Wisconsin Association of Independent Colleges and Universities announced a partnership with Transamerica to create a 403(b) multiple employer retirement plan specifically for its educational institution members.
Data provided by LGIMA suggests the average U.S. pension plan’s funding ratio increased a full 2% during the month of April.
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.