“Portfolio managers and their trading desks primarily choose [investment] instruments based solely on personal experience rather than through an analytical process,” says Kevin McPartland, with Greenwich Associates.
Tag: DB plans
“A combination of economic, demographic, and regulatory changes have placed a small but material segment of these plans at risk,” Ted Goldman, senior pension fellow with the American Academy of Actuaries, told a new Congressional committee.
Corporate plans are winding down as public plans are strengthening themselves for the long run.
Despite two months in a row of funded status losses, most firms that track pension funding find the average funded status is still up for the year.
For example, the Council proposes to develop an alternative means of compliance by which the introductory portion of the SPD–referred to as the “Quick Reference Guide”–would be delivered annually to participants automatically, and the entire SPD or any full part of the SPD would be made available upon request.
A plan sponsor using pre-approved plan documents to restate a plan for the plan qualification requirements included on the 2012 Cumulative List will be required to adopt the plan document by April 30, 2020.
Institutions that track defined benefit (DB) plans’ funded ratios measured increases or decreases in funded status as high as 1%, but noted it could have been worse if not offset by higher liability discount rates.
The proposed rule would amend PBGC’s benefit payment regulation by replacing the guarantee limitations applicable to substantial owners with a new limitation applicable to majority owners.
According to Justin Owens, director, Client Strategy & Research, Russell Investments, while total 2017 contributions were the single largest ever recorded, just as noteworthy was the contribution above requirements.
“The takeaway is critical: it pays to remain patient,” the researchers wrote.
Although the latest report from the NCHS show life expectancy at birth declined, mortality rates for the older population continue to support projections of longer life expectancy, The Segal Group notes.
When computing defined benefit (DB) plan liabilities for 2015 using unsmoothed corporate bond rates to discount liabilities, roughly 84% of plans had unfunded liabilities, versus 11% for plans using the smoothed bond rates, the Society of Actuaries found.
While January was a great month for defined benefit (DB) plan funded status, recent market volatility underscores how important risk management is, says Matt McDaniel, with Mercer.
Willis Towers Watson’s Thinking Ahead Institute’s 2018 Global Pension Assets Study also found the U.S. retirement market has a greater propensity towards home bias in investing than other countries.
Mercer offers its list of key priorities for defined benefit (DB) plan sponsors for 2018.