According to the GAO report, the three pillars of the current retirement system in the United States are anticipated to be unable to ensure adequate benefits for a growing number of Americans due, in part, to the financial risks associated with certain federal programs.
“By providing an alternative dispute resolution option for employers who sponsor ongoing and terminated plans, we expect to save time and money for both the government and our stakeholders,” says PBGC Director Tom Reeder.
Asset managers that monitor DB plan funded status found 1% through 1.3% increases last month.
In a statement, ERIC said it is pleased the agency took into account its request for flexibility for DB plan sponsors to potentially delay for one year the use of the new mortality tables for purposes of satisfying minimum funding standards.
Researchers examine three levers that defined benefit plans can use to enhance portfolio outcomes in a low-interest-rate environment.
A technical update provides an alternative method for determining whether reporting an attrition event to the PBGC is required.
The agency is proposing that termination forms may be filed electronically and that plan sponsors be offered a pre-filing consultation.
Aon shows only 6% of U.S. corporate DB plan obligations have actually been settled since 2012.
The relief applies to PBGC premiums, single-employer plan terminations, reportable event notices, annual employer reporting, requests for reconsideration or appeals and multiemployer plan deadlines.
The agency is proposing two modifications for multiemployer plans and one modification for single-employer plans.
As part of the analysis of pension investments, the PensionSmart Analysis tool can examine different investment “glide path” options to help sponsors achieve specific goals related to funding and liability matching.
“Companies feel that the time is right to reduce or eliminate their pension funding shortfalls.” says Matt McDaniel, partner, Mercer.
In addition to saving more and working later, researchers from State Street Global Advisors suggest policy changes that could improve retirement readiness for younger workers and late savers.
Asset management firms estimate pension funding ratios declined slightly in August, but most say they are up for the year.
The most common preparatory steps taken include an evaluation of the financial impact of a pension risk transfer; discussions with stakeholders; data review/cleanup; and, exploration of the PRT solutions.
John Lowell, with October Three, says for two types of DB plans, investment-driven liabilities (IDL) is almost risk free for plan sponsors and provides more meaningful benefits to participants.
Across the top 300 funds globally, U.S. funds represent 38.6% of assets.