Tag: DB plans

PBGC Posts 2019 Premium Rates

A table on the PBGC’s website shows that the flat-rate premium for single-employer plans has grown from $31 in 2007 to $80 in 2019, and the variable-rate premium has grown from $9 to $43.

MassMutual Paper Serves As Primer for PRT Considerations

“While PRT can be a highly effective tactic for plan sponsors to reduce risk and shift liabilities off their books,” MassMutual says, “it’s possible to increase pension costs and risks if a PRT is not executed with long-term goals in mind.”

Pension Investment De-Risking Primer

Sterling Price, managing consultant at Findley, discusses how LDI and a dynamic investment policy help to de-risk pension plan assets.

Your DB Funded Status Has Improved? Now What?

Corporate DB plans have experience funded status improvement, and LDI strategies help plan sponsors preserve this; however, investment committees are looking for new asset classes that can provide greater returns at a reasonable level of risk.

‘Hibernation’ the Next Step for DB Plan Investing

As more marketable obligations—such as those for in-pay retirees—are transferred to insurers, residual DB plans will have unusual and idiosyncratic features that make them more difficult to manage, which will drive pension investing to a “hibernation” focus for many, Mercer says.