| | Benefits & Administration | | Pension Funded Status Unchanged in 2015 | | The pension funded status of the nation’s largest corporate plan sponsors finished the year unchanged compared with the end of 2014, due in large part to a rise in interest rates mostly offset by a weak global stock market, according to a new analysis by Towers Watson. The firm estimates the aggregate pension funded status of 413 Fortune 1000 companies reached 82% at the end of 2015—the same as it was at the end of 2014. But, 2016 may be a better year.Read more > | | More Participants Understand TDFs | | Target-date funds (TDFs) are currently offered by 88% of plan sponsors and utilized by upwards of 64% of participants, due largely to the Pension Protection Act’s (PPA) sanctioning of TDFs as a qualified default investment alternative, according to research from Vanguard. Generally, TDF investors understand how their investments work and say they are familiar with the “outwardly simple, inwardly sophisticated” messaging product providers have stressed in the last year. A strong majority (64%) say they understand the glide path concept of the investment mix getting more conservative over time. The study also gauged participants’ understanding of risk.Read more > |
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