Defined Benefit Archives - Pension Policy International

25MarMarch 25, 2025

UK. DB transfer activity falls to record low

Defined benefit transfer activity fell to a record low in February, data from XPS has found. XPS Group’s Transfer Activity Index fell to the lowest observed rate since the Index was established in 2018. In February 2025, there was an annualised rate of 13 members in every 1,000 transferring their benefits to alternative arrangements. This was the third consecutive month the index had fallen, suggesting that members are becoming increasingly cautious when making decisions about their retirement arrangements. Helen Cavanagh, senior consultant at...

March 25, 2025

News, SliderDefined Benefit, UK

14MarMarch 14, 2025

Pension Funding Index February 2025

By Zorast Wadia The funded status of the 100 largest U.S. corporate defined benefit pension plans increased by $12 billion during January, as measured by the Milliman 100 Pension Funding Index (PFI). The funding surplus improved to $71 billion as a result of liability decreases and investment returns that surpassed expectations. Pension liabilities fell during the month due to a small increase in the benchmark corporate bond interest rates used to value those liabilities. As of January 31, the PFI...

March 14, 2025

Articles, System Characterization2025, Defined Benefit, Funding, Occupational Pensions

04MarMarch 4, 2025

UK. DB schemes reconsidering long-term strategies amid market changes

Defined benefit (DB) pension schemes may be reconsidering their endgame strategies in light of recent market movements, PwC has said, after its Low Reliance Index continued to show a record surplus position, rising to £180bn in February 2025. PwC’s Buyout Index also recorded a surplus position of £90bn, demonstrating that DB pensions schemes continue to have, on average, sufficient assets to buyout their pension promises. PwC head of investment strategy, Sam Seadon, noted that there has been "something of a roller...

March 4, 2025

News, SliderDefined Benefit, Investment, Pension Management, UK

17JanJanuary 17, 2025

Pensionomics 2025: Measuring the Economic Impact of Defined Benefit Pension Expenditures

By Dan Doonan & Iliana Boivie Pensionomics 2025: Measuring the Economic Impact of Defined Benefit Pension Expenditures finds pension spending powered by U.S. private and public sector defined benefit pensions contributed significantly to the economy. In 2022, retiree spending of public and private sector pension benefits generated $1.5 trillion in total economic output, supporting 7.1 million jobs across the nation. In addition to its impact on employment and economic activity, pension spending bolstered public finances in 2022, adding $224.3 billion in...

January 17, 2025

Books, Books, Pension design, Reports2025, Defined Benefit, Health Care, Labor Market, Private Pensions

23DecDecember 23, 2024

Here’s What Retirement on a Pension Looks Like in America

The pursuit of happiness in retirement is a lot easier with a pension. Retirees with regular paychecks report higher levels of satisfaction than those who rely on 401(k)s to supplement their Social Security, studies have shown. The security of a lifelong income is a source of comfort and happiness, those with pensions say. While 401(k)s can generate more wealth, retirees say navigating all the investing, tax and withdrawal strategies can add to their stress when they are trying to lower it. Pensions do have drawbacks....

December 23, 2024

News, SliderDefined Benefit, Pension design, US

25NovNovember 25, 2024

UK. Hopes and fears for pensions in 2025

Improvements in defined benefit (DB) pension scheme funding mean that, for many, the ‘endgame’ for the pension scheme now feels tangible, instead of a distant ambition. However, the advent of the new funding regime will overlay a new discipline. With defined contribution (DC) schemes, questions around adequacy remain uppermost for members, while the absence of a timetable for the extension of auto-enrolment minimum contributions continues to be a concern.” The challenge of retirement adequacy We now know that Employer National Insurance...

November 25, 2024

NewsDefined Benefit, Defined Contribution, UK

12NovNovember 12, 2024

US. Why do workers yearn for defined-benefit pension plans?

A closer look at the Boeing negotiations only makes the question more puzzling Boeing Co. unionized workers recently voted to accept the aerospace company's third contract offer and end their strike. The agreement does not include reopening the Boeing (BA) defined-benefit pension plan, which was cited as the major reason that the union rejected the second offer. Even though the strike is over, I find the fact that reopening the pension plan played such a prominent role in the negotiations really...

November 12, 2024

NewsDefined Benefit, Defined Contribution, Retirement Planning, US

11NovNovember 11, 2024

Gen X slip between DB and DC pension cracks

The tail-off in defined benefit (DB) pension provision around the millennium and a lack of compulsion around defined contribution (DC) saving until 2012 has had a lasting impact according to Standard Life’s Retirement Voice report. • Majority of Gen X (54%) are worried their finances won’t cover their retirement – compared to 31% among Baby Boomers • 45% Gen X expect their living standard to be worse in retirement compared to 29% of Millennials • Gen X most likely...

November 11, 2024

NewsDefined Benefit, Defined Contribution, Gen X, Retirement Planning, savings, UK

01NovNovember 1, 2024

US. The union fight to resuscitate the Boeing pension is a battle over the American dream

Machinists at aerospace giant Boeing have been on strike for nearly seven weeks. The union members want larger pay increases and improved retirement benefits, and the two sides have made some headway on the terms of a new contract. But there is one issue where they remain far apart: the revival of the company pension plan. The work stoppage has shuttered Boeing’s BA 3.68% production in the Pacific Northwest and contributed to a recent $6 billion loss for the company,...

November 1, 2024

NewsDefined Benefit, Occupational Pensions, US

30OctOctober 30, 2024

Striking Boeing workers may have leverage, says pension expert Teresa Ghilarducci

Machinist workers striking against Boeing Co., Chicago, may have the leverage to potentially set a precedent in their demands for the company to restore its defined benefit plan, says Teresa Ghilarducci. Ghilarducci, professor of economics at The New School for Social Research and the director of the Schwartz Center for Economic Policy Analysis and The New School's Retirement Equity Lab, is a longtime advocate for retirement security. She said that companies like Boeing, where reliability and consistency are essential in high-stakes...

October 30, 2024

NewsDefined Benefit, US

March 2025

UK. DB transfer activity falls to record low

Pension Funding Index February 2025

UK. DB schemes reconsidering long-term strategies amid market changes

January 2025

Pensionomics 2025: Measuring the Economic Impact of Defined Benefit Pension Expenditures

December 2024

Here’s What Retirement on a Pension Looks Like in America

November 2024

UK. Hopes and fears for pensions in 2025

US. Why do workers yearn for defined-benefit pension plans?

Gen X slip between DB and DC pension cracks

US. The union fight to resuscitate the Boeing pension is a battle over the American dream

October 2024

Striking Boeing workers may have leverage, says pension expert Teresa Ghilarducci