“Plan sponsors should review their risk management toolkit to consider whether their investment policy is aligned with the current market environment and to explore potential risk transfer activity,” suggests Scott Jarboe, with Mercer.
Tag: DB plan
Honing in on each participant’s ZIP+4 code to capture a wealth of lifestyle information, and analyzing them alongside factors such as gender, annuity amount and retirement health, can help plan sponsors make more informed decisions on funding and risk management, often reducing costs.
A company executive says Club Vita’s analysis will lead to material savings and less risk for defined benefit (DB) plan sponsors.
A report from the National Institute on Retirement Security shows spending from retirees that receive income from multiemployer pension plans helps the economy, but that could be affected if the multiemployer pension crisis is not resolved.
The lawsuit claims owners of Freedom Communications made ill-advised, highly speculative investments which caused the pension plan to lose tens of millions of dollars.
Sixty-seven percent of defined benefit (DB) plan sponsors polled say they will conduct an annuity buyout to de-risk, and the majority of them have already taken actions to prepare.
There are goals and deadlines during the termination process, so a plan sponsor doesn’t want to hit a roadblock and have to start the process all over again.
Larger DB plans have access to liability hedging, overlay managers and derivatives to manage interest rate risk, and small plans want these capabilities but cannot afford the expense, says James Tamposi with Cerulli Associates.
Institutional assets tracked by Wilshire Trust Universe Comparison Service (Wilshire TUCS) posted an all-plan median return of 0.88% for second quarter.
Nearly two-thirds (62%) of respondents to a survey say they are "very likely" to transfer some or all of their pension obligations to an insurance company once their DB plan becomes well-funded.
"Having a plan in place to manage their finances can help retirees feel confident about spending their assets and address the fears that may be holding them back,” says Marcy Keckler, vice president of financial advice strategy at Ameriprise Financial.
Northern Trust amended its benefit formula in 2012 and provided a transitional benefit that assumed salary increases of 1.5% per year, and the court found expectations of higher salary increases was not part of an “accrued benefit.”
“IHI cannot delegate fully its statutory responsibilities under ERISA,” a federal judge says in her opinion.
According to a Sears announcement, following the making of a $407 million contribution, it will be nearly relieved of the obligation to make further contributions to the pension plans for approximately two years.