Defined Benefit Archives - Page 8 of 11 - Pension Policy International

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

28JulJuly 28, 2022

Wait Your Turn: Pension Incentives, Workplace Rules and Labor Supply Among Philadelphia Municipal Workers

By David McCarthy & Po Lin Wang Little academic work has examined the labor supply response to pension incentives at the intensive margin. We explore this issue using individual-level administrative and pension data for Philadelphia city employees, where workers have some choice about whether or not to perform overtime, which is pensionable. We document large variation across workers in the incentives to do overtime provided by pension rules. Although standard regressions show that worker overtime is positively associated with own...

July 28, 2022

Articles, Labor Market, Pension design2022, Defined Benefit, Public Pensions, State Pensions, US

22JulJuly 22, 2022

Defined Benefit Risk Phase 2: Expert Interviews

By David G. Pitts Over the course of 2020 and 2021, the research team interviewed the following subjects: • Chief Financial Officer • Chief Risk Officer • Multiemployer Plan FSA • Public Plan FSA • Investment Consultant / FSA • Outsourced Chief Investment Officer / FSA • Canadian FSA / CERA Each interview lasted approximately one hour. All interviewees are senior practitioners in the defined benefit space. The interview notes include a faithful representation of the ideas discussed, with some changes in minor details to ensure the anonymity of the respondent. Executive...

July 22, 2022

Books, Pension Management2022, Ajuste, Corporate Governance, Defined Benefit, Investment, Risk

05JulJuly 5, 2022

Canadian defined benefit pension plans’ financial health steady in Q2 2022: Aon

Aon plc (NYSE: AON), a leading global professional services firm, announced today that the aggregate funded ratio for Canadian pension plans in the S&P/TSX Composite Index increased from 100.5 to 101.5 percent during the past three months, according to the Aon Pension Risk Tracker. It was at 96.9 percent at the beginning of the year. The Aon Pension Risk Tracker calculates the aggregate funded position on an accounting basis for companies in the S&P/TSX Composite Index with defined benefit (DB)...

July 5, 2022

News2022, Canada, Defined Benefit

04JulJuly 4, 2022

UK. DB pension surplus reached record high in June

The aggregate defined benefit (DB) pension scheme surplus in the UK increased by £60bn to £250bn in June, according to the PwC Pension Trustee Funding Index, marking the highest surplus recorded since the launch of the index in 2015. The index showed that whilst asset values fell over the month amid market volatility, this was more than offset by a larger fall in liabilities, as long-term bond yields continued to rise. Liabilities fell by £110bn to £1,340bn, while asset values declined...

July 4, 2022

News2022, Defined Benefit, Funding, UK

09JunJune 9, 2022

Factors Influencing the Choice of Pension Distribution at Retirement

By Robert L. Clark & Olivia S. Mitchell One of the most important financial decisions that pension participants make concerns how they access their pension assets when they terminate employment with their plan sponsor. Their choices depend both on own preferences and the options offered by their retirement plan. This paper examines both past and future pension withdrawal choices for those with defined benefit and defined contribution pensions, separately. Our data are drawn from a set of pension distribution questions...

June 9, 2022

Articles, Pension design2022, Defined Benefit, Defined Contribution, Income, Payout, US

28AprApril 28, 2022

Puerto Rico teachers fail to overturn pension changes in debt plan

A federal appeals court has upheld modifications to teachers’ pensions under Puerto Rico’s debt adjustment plan, despite arguments from teachers’ associations that the changes violate the U.S. territory's law. The 1st U.S. Circuit Court of Appeals on Tuesday said that the federal law that authorized the commonwealth’s debt restructuring allowed a federally appointed oversight board to modify the pension obligations. The changes were part of the board’s wide-ranging restructuring for Puerto Rico, which was approved by a lower court in...

April 28, 2022

NewsDefined Benefit, Puerto Rico

October 2022

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’

July 2022

Wait Your Turn: Pension Incentives, Workplace Rules and Labor Supply Among Philadelphia Municipal Workers

Defined Benefit Risk Phase 2: Expert Interviews

Canadian defined benefit pension plans’ financial health steady in Q2 2022: Aon

UK. DB pension surplus reached record high in June

June 2022

Factors Influencing the Choice of Pension Distribution at Retirement

April 2022

Puerto Rico teachers fail to overturn pension changes in debt plan