Defined Benefit Archives - Page 7 of 11 - Pension Policy International

26JanJanuary 26, 2023

Should Labor Abandon Its Capital? A Reply to Critics

By: David H. Webber Several recent works have sharply criticized public pension funds and labor union funds (“labor’s capital”). These critiques come from both the left and right. Leftists criticize labor’s capital for undermining worker interests by funding financialization and the growth of Wall Street. Laissez-faire conservatives argue that pension underfunding threatens taxpayers. The left calls for pensions to be replaced by a larger social security system. The libertarian right calls for them to be smashed and scattered into individually-managed...

January 26, 2023

Articles, Labor Market, Pension Management2023, Defined Benefit, Public Pensions, Regulation, US

20DecDecember 20, 2022

Conversion from DB to DC: The EU Pension Custodian

By: Hans van Meerten Worldwide we see a move to DC schemes. Most – if not all countries – choose the operate DB next to DC. However, in The Netherlands, the legislator choose for so-called conversion: transforming 'old' DB- to 'new' DC. In 2011, the Dutch legislator introduced the so called 'Pension Custodian'. It could only be used for the Dutch 2nd pillar DC IORP, the PPI. This Pension Custodion should *not* be confused with the IORP II Custodian. However, with the implementation of...

December 20, 2022

Articles, Pension design2022, Defined Benefit, Defined Contribution, EU, Netherlands

20DecDecember 20, 2022

US. Pension Risk Transfer Market Keeps Setting Records

The U.S. pension risk transfer market showed no sign of slowing in the third quarter of 2022, as market activity continues to reach new levels The year’s first quarter saw $5.3 billion in sales split about evenly between single premium buy-ins and buyouts, according to data from financial industry research organization LIMRA. That mark was 40% higher than 2021’s first quarter and the highest first-quarter result on record. There were no buy-in contracts sold in Q2, but single premium buyout sales...

December 20, 2022

NewsDefined Benefit, Risk, US

24NovNovember 24, 2022

More than 70,000 UK university staff go on strike over pay and pensions

Up to 2.5 million students could face disruption as tens of thousands of university staff begin industrial action on Thursday in what has been billed as the biggest strike in the history of UK higher education. More than 70,000 staff, including lecturers, librarians and researchers, are due to take part in the first of three days of strike action over pay, working conditions and pensions, with pickets expected at 150 universities. Read also UK. MPs told ‘illegal’ LDIs fanned gilt crisis The...

November 24, 2022

NewsDefined Benefit, UK

21NovNovember 21, 2022

Japan seen setting 2023 pension rise below inflation

Japan is expected to curb pension payment rises at rates below that of inflation, according to Nippon Life Insurance's research arm. NLI Research Institute has forecast an inflation rate of 2.5% for full-year 2022, but it expects the government to set the increase in pension payments for those aged 68 and above at only 1.8% for next year. It expects those aged 67 and younger to get a pension rise of 2.1% in 2023. Although there are worries that the financial...

November 21, 2022

News2022, Defined Benefit, Inflation, Japan

28OctOctober 28, 2022

Discounting and the Market Valuation of Defined Benefit Pensions

By luca larcher & Francis Breedon We investigate how defined benefit pension schemes of FTSE firms are valued by the equity market, focusing on how future liabilities are discounted (since UK data allows us to estimate the duration of pension liabilities fairly accurately). We find that equity market valuation is consistent with discounting without allowing for credit risk. This differs from the approach used in published accounts for which IAS 19 (and SFAS No. 158, its US equivalent) allows for...

October 28, 2022

Articles, Pension design2022, Defined Benefit, UK

03OctOctober 3, 2022

Corporate pension plans have staying power

While many U.S. corporate defined benefit plan sponsors have frozen their plans to benefit accruals or transferred their liabilities to insurance companies, they still represent hundreds of billions of dollars of investible assets and reports of their demise are premature, experts say. It was 10 years ago in June that General Motors Co. stunned the institutional investing industry when the automaker announced a $29 billion pension buyout deal with Prudential Insurance Co. of America. The event seemingly portended seismic implications for...

October 3, 2022

NewsDefined Benefit, Occupational Pensions, US

29SepSeptember 29, 2022

With Interest Rates Rising, Companies Look to Unload Pension Liabilities

The funding status of defined-benefit pension plans has been lifted by rising interest rates, which are expected to increase further Rising interest rates are boosting corporate pension plans, providing finance chiefs with an option to lighten their companies’ balance sheets and transfer obligations to insurers. The U.S. central bank has raised interest rates five times this year as it battles persistent high inflation, including last week when it opted for the third consecutive 0.75-point interest-rate increase and indicated further rate action. When...

September 29, 2022

NewsDefined Benefit, Pension Management, Risk, US

28SepSeptember 28, 2022

Analysis of American Workers Shows Retirement Plan Type Influences Spending Habits

A new report by the Public Retirement Research Lab and JP Morgan demonstrated that public-sector workers whose primary retirement account is a defined benefit account tend to spend a higher ratio of their earnings than those with a defined contribution account. Read also With Interest Rates Rising, Companies Look to Unload Pension Liabilities The PRRL is a collaboration of the Employee Benefit Research Institute and National Association of Government Defined Contribution Administrators. They combined their datasets on public employees with defined...

September 28, 2022

NewsDefined Benefit, Defined Contribution, US

15AugAugust 15, 2022

UK. New DB funding rules risk forcing schemes into ‘straitjacket’

New funding rules for defined benefit (DB) pension schemes risk forcing all schemes into a ‘one-size-fits-all straitjacket’, leading to potential employer insolvencies in some cases, LCP has warned. In July, the Department for Work and Pensions (DWP) published its consultation on new regulations for DB scheme funding, whereby schemes would be required to have long-term plans set out in a funding and investment strategy. Schemes will be required to reach a funding level where no additional funding is expected to be...

August 15, 2022

News2022, Defined Benefit, UK

January 2023

Should Labor Abandon Its Capital? A Reply to Critics

December 2022

Conversion from DB to DC: The EU Pension Custodian

US. Pension Risk Transfer Market Keeps Setting Records

November 2022

More than 70,000 UK university staff go on strike over pay and pensions

Japan seen setting 2023 pension rise below inflation

October 2022

Discounting and the Market Valuation of Defined Benefit Pensions

Corporate pension plans have staying power

September 2022

With Interest Rates Rising, Companies Look to Unload Pension Liabilities

Analysis of American Workers Shows Retirement Plan Type Influences Spending Habits

August 2022

UK. New DB funding rules risk forcing schemes into ‘straitjacket’