Defined Benefit Archives - Page 5 of 10 - Pension Policy International

24NovNovember 24, 2023

US. The Pension: That Rare Retirement Benefit Gets a Fresh Look

In an economy characterized by a volatile stock market and elevated inflation, a sure thing looks better than ever. For some Americans in the labor force right now, that looks like a pension. Striking members of the United Automobile Workers union made waves this year when the union’s leaders demanded the reopening of defined-benefit pension plans for workers hired after late 2007. Although U.A.W. leadership failed to persuade automakers to reopen the plans, the bold move didn’t go unnoticed by...

November 24, 2023

NewsDefined Benefit, US

22NovNovember 22, 2023

UK. Opportunity for buyers as DB pension surplus growth continues

The aggregate funding position of FTSE 350 companies’ defined benefit (DB) has undergone a "complete reversal" over the past 18 months, Mercer's latest Pensions Risk Survey data has found. The tracker showed that the aggregate funding of FTSE 350 companies' DB schemes stood at £68bn at October 2023, recovering from roughly the same level of deficit (£69bn) at the end of Q1 2022. Mercer also suggested that changes in DB schemes’ funding position could be set to play a more positive role...

November 22, 2023

NewsDefined Benefit, Funding, UK

10NovNovember 10, 2023

UK. DB pension surpluses remain broadly stable

Defined benefit (DB) pension surpluses remained broadly stable during October, registering a slight decrease, but remaining elevated compared with recent years, according to XPS Pensions Group’s latest DB:UK funding tracker. The consultancy's tracker tool estimated that the aggregate surplus of UK pension schemes, when measured on a long-term target technical provision basis, stood at about £184bn on 31 October, which translates into an aggregate funding level of 115 per cent. A moderate 0.1 per cent rise in long-term gilt yields led...

November 10, 2023

NewsDefined Benefit, UK

03NovNovember 3, 2023

US. UAW’s Big 3 Retirement Deals Fall Short of Pension Revival

The United Auto Workers had an overarching goal last summer as it headed into negotiations with Detroit’s Big Three: claw back as many concessions as possible from the Great Recession, then keep pushing for an even better deal. In many ways it succeeded, with retirement being a notable exception. While the union won big improvements for savings plans, its long-shot endeavor to bring back pensions for younger members went nowhere, even as it won historic gains in pay and the elimination...

November 3, 2023

NewsDefined Benefit, Pension design, US

16OctOctober 16, 2023

US auto union strike: Carmakers say they cannot afford UAW demands

The United Auto Workers’ historic standoff with Detroit’s three carmaking giants is centered on an age-old tension: The union says corporate greed is keeping workers from earning fair wages, while Ford Motor Co., General Motors Co. and Stellantis NV say they can’t afford union demands. While both arguments have some merit, one fact stands out: The 10 individuals who’ve served as chief executive officers of the companies since 2010 have collected more than $1 billion of compensation. Meanwhile, wages of...

October 16, 2023

NewsDefined Benefit, Occupational Pensions, US

04OctOctober 4, 2023

90% of U.S. companies with DB plans looking for exits via PRT – MetLife

Nearly 90% of U.S. corporations with defined benefit plans look to fully transfer all their liabilities in an average of just four years, according to a new poll conducted by MetLife. In MetLife's 2023 Pension Risk Transfer Poll, the insurer said 89% of respondents said they plan to fully divest all their liabilities. Among that population, they plan to do so in an average of 4.1 years. Also, 94% of respondents said they are weighing the DB plan's value against the...

October 4, 2023

NewsDefined Benefit, Risk, US

03OctOctober 3, 2023

UK. DB funding levels remain buoyant despite volatility

Pension scheme trustees have been urged to take the time to review their endgame options, after industry analysis revealed that UK defined benefit (DB) funding levels have continued to improve, despite ongoing volatility. Analysis from XPS Pensions found that, despite the Bank of England holding interest rates steady for the first time since late 2021, the aggregate surplus of UK DB pension schemes stood at around £169bn at the end of September. Aggregate scheme assets were also down over the month...

October 3, 2023

NewsDefined Benefit, Funding, UK

20SepSeptember 20, 2023

UK: Buying A Distressed Business With A Defined Benefit Pension Scheme

Alexandra Wood, Devi Shah and Andrew Block discuss the additional complexities which a PE firm will face when acquiring a distressed business with a defined benefit occupational pension scheme, in light of the protections afforded by both the UK legislative framework and the role and support of the Pensions Regulator. Mayer Brown is a global services provider comprising associated legal practices that are separate entities, including Mayer Brown LLP (Illinois, USA), Mayer Brown International LLP (England & Wales), Mayer Brown...

September 20, 2023

NewsDefined Benefit, Occupational Pensions, Regulation, UK

05JulJuly 5, 2023

Canada. DB pension plans improve in second quarter

The health of Canadian defined benefit pension plans continued to improve in the second quarter of 2023, according to consulting firm Mercer. The company said the median solvency ratio of defined benefit plans in its database ticked upward to 119% at the end of June, meaning more than half had a surplus of funds. That’s despite the U.S. debt ceiling scare and the lingering effects of the banking crises south of the border, Mercer said. Pension funds’ investment returns were mostly positive...

July 5, 2023

NewsCanada, Defined Benefit

30JunJune 30, 2023

Linear Risk Sharing in Intergenerational Pension

By Michail Anthropelos, An Chen, Steven Vanduffel & Morten Wilke We introduce and analyze a novel collective defined contribution plan (CDC) which guarantees upon retirement at least a target benefit as a lump sum. The guarantee is provided by the remaining working generations under a pre-determined linear intergenerational risk sharing (IRS) rule. Through a simulation-based study, we show that the CDC scheme consistently outperforms the comparable individual DC scheme in terms of risk-adjusted performance. An extensive sensitivity analysis indicates that this...

June 30, 2023

Articles, Pension design2023, Defined Benefit, Defined Contribution

November 2023

US. The Pension: That Rare Retirement Benefit Gets a Fresh Look

UK. Opportunity for buyers as DB pension surplus growth continues

UK. DB pension surpluses remain broadly stable

US. UAW’s Big 3 Retirement Deals Fall Short of Pension Revival

October 2023

US auto union strike: Carmakers say they cannot afford UAW demands

90% of U.S. companies with DB plans looking for exits via PRT – MetLife

UK. DB funding levels remain buoyant despite volatility

September 2023

UK: Buying A Distressed Business With A Defined Benefit Pension Scheme

July 2023

Canada. DB pension plans improve in second quarter

June 2023

Linear Risk Sharing in Intergenerational Pension