| | Benefits & Administration | | Tax Reform Fuels DB Plan Accelerated Funding | | Since, under tax reform, the corporate tax rate will be lower in the future than what had previously been in effect, more voluntary defined benefit (DB) plan contribution activity is expected, according to Michael A. Moran, managing director and chief pension strategist with Goldman Sachs Asset Management (GSAM). In addition, he says changes to repatriation rules under tax reform may make foreign cash more accessible for U.S. multi-nationals, which may enable them to continue to make voluntary contributions in the future. Increased contribution activity leads to higher funded ratios which may be a catalyst for more de-risking activities, according to Moran. However, a borrow-to fund strategy might not be as compelling as before.Read more > | | | Investing | | J.P. Morgan Warns Long-Term Investment Outlook Is Muted | | J.P. Morgan Asset Management’s updated global market growth assumptions for 2018, penned by Anne Lester, head of U.S. retirement solutions for global asset management solutions, and Dan Oldroyd, portfolio manager and head of target-date strategies, warns that many market participants are likely pleased with year-to-date results from their retirement accounts, but the outlook for market returns over the next 10 to 15 years “remains less than inspiring.” They say, “Saving more is the most obvious and effective way to improve retirement outcomes.”Read more > |
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