PLANSPONSOR Weekend Newsdash
Week ending July 28th, 2017
Hello, PLANSPONSOR readers! This week we focus on defined benefit (DB) plans. There’s some positive news for both private-sector single-employer DB plans and multiemployer plans. However, NCPERS argues public pension reforms could hurt the economy. The American Academy of Actuaries explains the uses of multiple measurements for DB plan funding, and one study makes a case for long-horizon investing for DB plans. All this in addition to readers’ most popular articles are in this edition of PLANSPONSOR Weekend.
Editor's choice
Data and Research
SOA Review Shows Positive Funding Picture for DB Plans
Using the smoothed assets as allowed and smoothed bond rates require by current law to discount the liability, the 2014 total funding target liability for single-employer DB plans of $1.9 trillion was 98% funded, the Society of Actuaries (SOA) found.Read more >
Administration
Multiemployer Plans Have Hope and a Future
We’ve all seen the headlines: The Pension Benefit Guaranty Corporation (PBGC) multiemployer plan program is running out of money because it is helping so many plans, and a number of multiemployer plans have asked the Treasury for permission to reduce benefits under the Multiemployer Pension Reform Act (MPRA). But, according to Zane Dalal, executive vice president of Benefit Programs Administration (BPA), who is based in Los Angeles, the industry needs to take a balanced view.Read more >
Benefits
Continuing Public Pension Reforms Could Hurt the Economy
A report from the National Conference on Public Employee Retirement Systems (NCPERS) suggests that if public pension plan reforms continue, it will result in economic losses. The conference contends that lawmakers do not understand how public pensions work.Read more >
Administration
There Is No Single 'Right' Measurement for DB Plan Funding
The purpose of the measurement determines which number is “right,” according to the American Academy of Actuaries.Read more >
Investing
The Case for Long-Horizon Investing in DB Plans
Long-horizon investing can generate up to a 1.5% premium on returns, according to a Willis Towers Watson study that modeled pension plan investment practices.Read more >
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