Strong asset returns and an increase in voluntary contribution activity drove DB plan funded levels significantly higher over the last year; on the other side of the ledger, however, lower discount rates offset some of the gains.
Tag: Defined Benefit
Since the last study of this kind by CEM Benchmarking, average DB fund costs have increased from 0.40% to 0.60%, whereas DC plan costs have remained constant at 0.39%; overall, DB plans outperformed DC plans in the last decade by only 0.46%.
A mere 16% currently offer a pension plan to new hires.
Under a new bill in the California legislature, the state’s Human Resources Department would administer and oversee a defined contribution-type program for state employees, redirecting matching contributions that otherwise would be paid into the state pension system.
In a followup interview with Jack Cohen, Association of BellTel Retirees chairman, he says his association and others warned the PBGC that risk transfers would harm the insurance system.
The slight decrease in overall mortality during 2016 measured by the Society of Actuaries may seem to run counter to the CDC’s report that life expectancy at birth declined 0.1 years, however both stats are in fact true.
Alongside numerous changes, the bill seeks to eliminate the current 10% cap on automatically-increased deferral rates of employees who are automatically enrolled in a plan.
A new public website has simpler navigation features, straightforward design, targeted messaging and an increased focus on educational tools.
Mercer Reveals Leadership Changes in Its Wealth and Health Hemisphere; Milwaukee Institutional Announces Boston Location Led by VP; BPOC Acquires Zenith American; and more.
T. Rowe Price brings in new head of CEDT Innovation Center; USI Consulting hires assistant vice president of retirement services; StoneStreet rebrands as its services are expanded; and more.
However, employers will likely have some difficulty in knowing how to handle the January 1, 2018, effective date that has been assigned for many provisions in the House and Senate tax reform proposals, especially for the purposes of income tax withholding.
House and Senate Democrats warned that, if nothing is done, many of the more than 200 multiemployer plans in the U.S. are projected to fail within just the next 10 years.
Industry veteran joins Meeder as SVP; PGIM Investments appoints chief marketing officer to drive global expansion; FS Investments hires national sales manager to oversee sales professionals; and more.
House and Senate Democrats hope to pass legislation to “put union pension plans back on solid footing,” but their bicameral position in the minority makes this a tall task.
Wilshire’s data shows this was the best one-year return since the year ending June 30, 2014; that year ended with a 15.51% median return and a third consecutive quarter to post an annual return above 10%.
Melbourne Mercer Global Pension Index Urges Countries With Unsustainable Pension Systems to Take Action Now
The index’s ninth edition looks at how unsustainable pension systems in some countries need to learn from leading countries or risk creating intergenerational equity issues and disappointed retirees.
Discussion in the new appellate decision lays out some important distinctions regarding the initial district court’s decision to dismiss the lawsuit, weighing arguments of standing and mootness.
A collaborative survey between the U.S., Britain and Australia shows working-age employees struggle with retirement planning and saving.