March 2021
18Mar

US Corporate Pension Funded Ratio Climbs to 92.9% in February

Funding for the 100 largest US corporate pension plans, as tracked by the Milliman 100 Pension Funding Index, improved by $67 billion in February as the plans’ aggregate funded ratio rose to 92.9% from 89.7%, thanks to a 26 basis point increase in the monthly discount rate. It was the fifth straight month funded ratios have improved. Read also U.S. Participants don’t know what is happening to their fees A paltry investment gain of 0.13% during the month led to a...

March 18, 2021
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February 2021
19Feb

Underfunded and Under Pressure, U.S. Pensions to Keep Investing in China

U.S. state pension funds that invested in Ant Group Co. were stung when the financial technology firm’s initial public offering was suddenly pulled on orders of China’s president. But few of these investors are swearing off Chinese private markets, where they still hope to reap big returns. Read also US Corporate Pension Funded Ratio Climbs to 89.8% in January Shock waves rippled through the investment world when China halted the initial public offering of Ant, which would have been the world’s...

February 19, 2021
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18Feb

US Corporate Pension Funded Ratio Climbs to 89.8% in January

The funded ratio of the 100 largest corporate defined benefit (DB) pension plans improved to 89.8% at the end of January from 88.1% at the end of December as their aggregate deficit fell below $200 billion for the first time in more than a year, according to consulting firm Milliman. With the help of a 16 basis point (bp) increase in the monthly discount rate to 2.62% from 2.46%, the plans’ funding improved by $39 billion in January as their...

February 18, 2021
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17Feb

US. To Plug a Pension Gap, This City Rented Its Streets. To Itself.

The City of Tucson, Ariz., decided last year to pay rent on five golf courses and a zoo — to itself. In California, West Covina agreed to pay rent on its own streets. And in Flagstaff, Ariz., a new lease agreement covers libraries, fire stations and even City Hall. They are risky financial arrangements born of desperation, adopted to fulfill ballooning pension payments that the cities can no longer afford. Starved of cash by the pandemic, cities are essentially using...

February 17, 2021
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15Feb

UK. Govt urged to conclude net pay review in Spring Budget

The government should support the retirement incomes of lower paid workers by concluding the net pay review in this year’s budget, according to Now Pensions. Chancellor Rishi Sunak’s Spring 2020 Budget, released on 11 March last year, had stated that the government would “shortly publish a call for evidence on pensions tax relief administration” following the inclusion of plans for a comprehensive review of issues caused by the anomaly in the Conservative Party’s 2019 election manifesto. However, this review was paused...

February 15, 2021
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11Feb

Puerto Rico Board Strikes Tentative Debt Deal With Creditors

Puerto Rico’s financial oversight board reached a tentative agreement with investors on how to reduce $18 billion of bond debt and is seeking additional time to file a formal adjustment plan to the court. The board Wednesday asked a court overseeing Puerto Rico’s record bankruptcy to give the panel and creditors more time to finalize an accord, according to a court document. The board is seeking to file a debt restructuring plan by March 8. It had a Feb. 10...

February 11, 2021
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January 2021

13Jan

U.K. corporate funds finish 2020 with increased deficits

The total deficit of U.K. defined benefit funds covered by the Pension Protection Fund's 7800 index increased 9.6% in December, to £86.4 billion ($117.3 billion). The deficit was £78.8 billion at the end of November. Deficits also worsened for the year ended Dec. 31, from £10.9 billion, said an update Tuesday by the London-based PPF. The PPF is the lifeboat fund for the defined benefit plans of insolvent U.K. companies. The funding ratio of the corporate pension plans worsened...

January 13, 2021
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12Jan

US. Strong End to 2020 Puts DB Plan Funded Status Back to Where It Started the Year

The funded status of the nation’s largest corporate pension plans started and finished last year at the same level, as declining interest rates caused pension obligations to grow, offsetting gains from investments in equities and bonds, according to an analysis by Willis Towers Watson. Willis Towers Watson examined pension plan data for 366 Fortune 1000 companies that sponsor U.S. defined benefit (DB) plans and have a December fiscal-year-end date. Results indicate that the aggregate pension funded status is estimated...

January 12, 2021
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05Jan

How To Fix America’s Retirement Crisis: 10 Experts Weigh In

For decades there’s been a festering retirement crisis in America. Congress has repeatedly tried to resolve the retirement crisis via stop-gap, incremental efforts. It has created new retirement accounts, like Roth IRAs to benefit lower income workers, as well as tax-advantaged health savings accounts (HSAs) to help pay healthcare costs. It’s made it easier for small businesses to offer retirement plans, and it’s even allowed employers to auto-enroll employees. Also Read Americans retirement savings may not be that safe after all new surveyfinds Nevertheless, the retirement...

January 5, 2021
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January 2021
01Jan

The Shift to a Funded Social Security System: The Case of Argentina

By Joaquin Cottani & Gustavo Demarco The Argentine social security system has been modified a number of times since its creation in 1904. The pay-as-you-go system was adopted in 1954. The reform of 1969 established the system’s definitive structure, which remained substantially unchanged for more than twenty years. However, the system’s underlying financial problems led the government to undertake an integral reform of its social security program in 1993. The government adopted a mixed system by introducing private pensions into...

January 1, 2021
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