“The takeaway is critical: it pays to remain patient,” the researchers wrote.
Tag: DB plans
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.
The agency is required to adjust these amounts annually for inflation, but the agency says its goal is to encourage compliance, not to penalize plans that inadvertently forget to file information.
Most firms that track DB plan funded status estimated between 1% to 3% improvement for the year.
Michael A. Moran, with GSAM, says the firm expects voluntary contribution activity to continue into 2018, as defined benefit plan sponsors claim a deduction at their former, higher tax rate.
Public pension fund members surveyed expressed interest in more transparency about pension fund investments and investment returns.
The idea is to put participants with lesser unfunded vested benefits (UVBs) in one plan, and those with greater UVBs in another.
A final rule provides a new table for determining expected retirement ages for participants in pension plans undergoing distress or involuntary termination with valuation dates falling in 2018.
The updated mortality improvement rates and static tables apply for purposes of calculating the funding target and other items for valuation dates occurring during calendar year 2019.
Eighty-one percent of pension plan professionals say funded status volatility is their top motivating factor for pursuing an LDI strategy.
A report from Cerulli Associates states the primary reason an institutional investor seeks out a CIT is the fact that it can often gain more favorable pricing compared to using other vehicles.
Firms that track DB plan funding reported increases in the month ranging from 0.4% to 1.0%.
No lever alone is enough to close the pension funding gap, according to a report from Cambridge Associates.
The request regards distress terminations and PBGC-initiated terminations of DB plans.
The tables are to be used for determining contributions to DB plans and permitted disparity in DC plan contributions.