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| Benefits & Administration |
| New Mortality Tables Lower Pension Buyout Cost |
| During December 2014, the average cost of
purchasing annuities from an insurer to cover pension liabilities decreased
from 109.0% to 105.3% of the accounting liability, according to the Mercer U.S.
Pension Buyout Index. The Buyout Index reflects that many plan sponsors are
using a new mortality assumption to measure the balance sheet value of their
pension obligations, in response to the Society of Actuaries’ publication of
the RP-2014 mortality table and MP-2014 mortality improvement scale last
October. This update increased balance sheet liabilities and decreased both the
cost of buying an annuity as a percentage of the projected benefit obligation
(PBO) and the economic cost of maintaining the plan as a percentage of the PBO.Read more > |
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| Products, Deals & People |
| Mercer Releases Social Security and Medicare Guides |
| Mercer has released its “2015 Guide to Social
Security” and “2015 Medicare” booklets. The guides provide simple explanations
of both national programs, discuss recent changes, and evaluate cost and
benefit amounts for 2015. The publications include real-life examples and can
be used to complement retirement planning advice, Mercer says.Read more > |
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| Sponsored message from Financial Engines |
| PLANSPONSOR interviews Christopher Jones, Chief Investment Officer at Financial EnginesRead more > |
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| Economic Events |
| The U.S. Census Bureau of the Department of
Commerce announced that construction spending during December 2014 was estimated
at a seasonally adjusted annual rate of $982.1 billion, 0.4% above the revised November
estimate of $978.6 billion. The December figure is 2.2% above the December 2013
estimate of $961.2 billion. |
