Breaking Free From Interest Rate Bind on DB Funding
The long-running low interest rate environment has created DB plan funding challenges, but plan sponsors can take steps to mitigate them.
Administration
States Have Made Progress in Partly Mitigating Funding Risk
An S&P Global Ratings report says states’ policy decisions, not market volatility, are likely the greatest future financial risk.
Increase in Interest Rates Gives DB Plans a Boost in September
Jessica Hart, with Northern Trust Asset Management, notes, “Even though the Fed cut rates by 25 bps, the average liability discount rate climbed by 13 bps. This highlights...
Multiemployer Plans Still Applying for Benefit Reductions
Even as lawmakers are scrambling to find a solution to the multiemployer pension crisis, the trustees of the Detroit Carpenters’ Pension Plan recently submitted a Pension Recovery Program...
Could GE Have Continued Its DB Benefits?
GE is freezing pension plans and offering a lump-sum window to certain former employees, but John Lowell, with October Three, questions whether a design-based solution would have helped...
Improving a Retirement Plan Committee Through Diversity
Today’s workforces are becoming more diverse both generationally and culturally, and retirement plan committees should match this trend to add unique perspectives to plan decisions.
Lower Asset Growth Hampers State and Local Pension Outlook
While liability growth has declined in the past two decades, asset growth has been even slower.
Social Security Education a Must-Have for Retirement Plan Participants
General education is helpful, but getting personal will help employees establish a plan for income in retirement.
Natural Disasters Damage Retirement Accounts, Too
What options do participants have when a natural disaster affects them, and are there steps plan sponsors can take to reduce the impact on retirement savings?
Teaching Employees Skills and Practices for Retirement Confidence
Unfortunately, there are no do-overs in life, but there are ways to help employees feel confidence about their financial futures going forward.
Plan Sponsors Recognizing Need for Decumulation Choices
A new survey from Alight Solutions indicates more employers are expanding distribution options in their DC retirement plans to help employees with draw down strategies in retirement.
Interest Rates a Factor for Crucial DB Valuation Decisions
It’s time for many plan sponsors to determine what rate they will use to calculate unfunded vested benefits, and they also should carefully consider whether to use legislation-provided...
Avoid Pitfalls to Properly Replacing DC Plan Investments
An analysis found monitoring DC plan investment menus and making necessary changes results in better performance, and researchers have followed up with four pitfalls to avoid when making...
Plan Sponsors Should Address Financial Squeeze Put on Gen X
Struggling with debt and budgeting, Gen Xers are in their prime earning years, they are getting close to retirement and they are taking care of both their children...
DB Plan Funding Takes a Hit From Record-Setting Low Interest Rates in August
Pension plans that have invested in long bonds would have benefited, according to Northern Trust Asset Management, and Legal and General Investment Management America suggests market volatility can...
Help for Employees Falling Behind on Retirement Savings
Educating employees about the power of time on their savings, encouraging them to log into their retirement plan accounts and starting them at a higher deferral rate are...
More Employers Focusing on Lifetime Income
However, most are offering systematic withdrawals, lifetime education and planning tools, and in-plan managed account services; they are still leery of offering guaranteed income solutions such as annuities.
New York State Public Retirement Fund Assumed Rate of Return Lowered
“As in years past, we’re taking the responsible action of lowering our assumed rate of return now so we can better weather market volatility,” New York State Comptroller...
Plan Sponsors Making Plan Changes to Help Employees Save More
They are turning to plan advisers for help with making plan design and investment changes.
Plan Sponsors Should Watch for Unintended Consequences of Defaults
A research paper warns that changing to a default fund that is preferred by more employees may lead people to be less well-prepared for retirement.