In 2014, President Barack Obama signed into law major changes to Section 4062(e), which requires companies with defined benefit (DB) plans to report to the PBGC when they stop operations at a facility and employees lose their jobs.
The U.S. Solicitor General and the Pension Rights Center have filed briefs with the Supreme Court for a fiduciary breach case the U.S. 8th Circuit Court of Appeals dismissed based on the fact that a DB plan had enough money left over to keep paying benefits.
Pension plans that have invested in long bonds would have benefited, according to Northern Trust Asset Management, and Legal and General Investment Management America suggests market volatility can be risk-managed and controlled to a specific target with the use of an overlay.
The IRS anticipates that final regulations on closed DB plan nondiscrimination testing will not be published in time for plan sponsors to make plan design decisions before expiration of the relief last provided.
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.
Announcements by the company provide an example of common steps and the timeline for a pension risk transfer.
However, the ratings agency doesn’t expect funded status improvements to continue, and it notes that many not-for-profit hospitals are focusing on de-risking strategies.
Mercer's clients in the United States will have access to Club Vita's proprietary longevity assumptions, analytics and reporting, which will help them to better assess and manage their plans' longevity risk.
While asset returns gave defined benefit (DB) plan sponsors a funded status bump in June, lower interest rates led to an overall decline for the second quarter of 2019.
Defined benefit (DB) plans lost their 2019 funded status gains in May, and some firms say hedging liabilities would have helped.
The Society of Actuaries (SOA) proposed mortality tables include mortality data from both single-employer and multiemployer defined benefit (DB) plans.
A pension risk transfer (PRT) to terminate a defined benefit (DB) plan reflects heavily on a plan sponsor’s balance sheet, which may stop in its tracks a decision to do so.
According to Northern Trust, Corporate Employee Retirement Income Security Act (ERISA) pension plans had the best first quarter on a relative basis, while the Wilshire Trust Universe Comparison Service shows Taft Hartley defined benefit (DB) plans, which had the largest allocation to U.S. equities, posted the highest Q1 gain.
Plan sponsors may submit a determination of coverage request for four common types of DB plans.
With most companies that track defined benefit (DB) plan funded status showing an improvement in April and for the year, some suggest plan sponsors consider whether it’s time for a risk transfer or to set off portfolio glide path triggers.
Asked what they plan to look for in asset management searches in the next 12 months, the majority of mid-sized defined benefit (DB) plan CIOs said better risk-adjusted returns, and they plan to turn to private equity, real estate and hedge funds.
An analysis from the Society of Actuaries suggests the majority of defined benefit (DB) plan sponsors are making sufficient contributions to help reduce unfunded liabilities.