Funding Archives - Page 9 of 30 - Pension Policy International

27JunJune 27, 2023

U.S. public pension funding dips in May – Milliman

The overall estimated funding ratio of the 100 largest U.S. public pension plans fell to 73.7% as of May 31 from 74.8% a month earlier, according to the Milliman 100 Public Pension Funding index. During the month of May, Milliman estimated that public pension plans had an aggregate investment return of -1%, with an estimated range of -1.8% to -0.3%. "Despite the slight drop in funded status, May marks the eighth month in a row where the funded ratio has stayed...

June 27, 2023

NewsFunding, Public Pensions, US

16JunJune 16, 2023

U.S public pensions are building for the long-term. How pension plans are reacting after a year of shocks

By Ortec Finance U.S. public pension plans have been through a torrid year of investment volatility, rising inflation and increasing interest rates. The Federal Reserve has raised rates nine times in succession taking the rate to 5% - the highest since 2007 – while CPI inflation climbed as high as 9.1% in June 2022. The most recent figure of 4.9% for April is good news but many analysts still expect further Federal Reserve rate rises. The series of economic shocks helps explain...

June 16, 2023

Articles, Pension Management, Reports2023, Funding, Public Pensions, US

13JunJune 13, 2023

US Pension Funded Status Continues to Improve in May

Despite negative returns for many asset classes in the stock market, decreasing liabilities resulted in U.S. corporate pension funded status improvements in May, according to analysts. Pension discount rates rose almost one-quarter of a percentage point in May, erasing much of the fall in rates that had been seen so far this year, according to Agilis’s May Pension Briefing. This boost in funded status comes on the heels of a strong April for pension plans, as an increasing number of pension...

June 13, 2023

NewsFunding, US

09JunJune 9, 2023

A Complaint Template for Legal Challenges to the Validity of the Statutory ‘Debt Ceiling’

By Robert C. Hockett The Statutory ‘Debt Ceiling’ appearing at 31 USC 3101(b), rooted in the Second Liberty Bond Act of 1917 aimed at expanding Treasury financing options during the First World War, is not valid in any application that would occasion default on U.S. sovereign debt, other contractual obligations, or Social Security or Veterans’ pension obligations. There are at least seven mutually reinforcing legal grounds for so saying. These include preemption of such application of the Ceiling by the...

June 9, 2023

Articles, System Sustainability2023, Funding, Political economy, Public Pensions, Social Security, US

06JunJune 6, 2023

Funding ratios for U.S. corporate pension plans increase in May

U.S. corporate pension plans saw their funding ratios increase in May thanks to falling liability values offsetting asset losses due to negative non-U.S. equity returns during the month, according to three new reports. Wilshire Advisors estimated the aggregate funding ratio of U.S. corporate plans increased 0.8% percentage points to land at 99.8% as of May 31. Liability values declined further than asset values after U.S. Treasury yields rose, primarily due to debt ceiling negotiations and continuing anticipation regarding the Federal Reserve,...

June 6, 2023

NewsFunding, US

31MayMay 31, 2023

UK. Derisking well funded DB schemes may be an opportunity missed

Funding is reaching record levels and DB schemes are now in a position of strength. Current regulations compel schemes to target ultra low investment returns, but taking risk and therefore return out of DB pension investments may be going too far, representing a ‘missed opportunity’ to better invest £1.5 trillion of UK DB pension scheme assets. Steve Hodder, partner at LCP, said: “For 20-plus years, regulatory focus has been on ‘slowing down’ DB schemes through reducing investment risk. This was...

May 31, 2023

NewsDefined Benefit, Funding, Pension Management, Risk, UK

26MayMay 26, 2023

Pension Reform: Conceptual Foundations and Practical Challenges

By Seamus Duffy & Oliver Giesecke Underfunded pension are the largest liability for state and local governments across the United States. As a result of increasing recognition of the associated risks, recent statutory funding mandates led to a sharp increases in required contributions, threatening city services and employee bases. As funding pressure mounts, pension reforms offer a viable tool for prudent economic policy. We propose five general principles that guide pension reform considerations and discuss how these principle stand in...

May 26, 2023

Articles, System Sustainability2023, Defined Benefit, Funding, Pension Reform, US

24MayMay 24, 2023

EU. MEPs face 50% cut to luxury pensions, but public still set for hefty bill

The European Parliament is set to slash payouts from its controversial top-up pension fund by 50 per cent as part of measures aimed at eradicating a €300 million deficit and averting a looming bankruptcy. Despite beneficiaries now facing major cuts to their pension payments, around €86 million is still expected to be covered with public money. After years of procrastination and an ever-growing deficit, the European Parliament has finally taken the bull by the horns to address the impending bankruptcy of...

May 24, 2023

NewsEU, Funding, Sustainability

22MayMay 22, 2023

UK. Treasury to bear risk of unfunded legacy public sector schemes

A policy paper published on 15 May states that the cost control mechanism (CCM) for new public sector schemes will exclude those legacy schemes closed to new members. Following a review by the government actuary and a series of consultations, the government will now bear “full risk” of costs related to unfunded legacy schemes, which includes civil servants, teachers and NHS staff. The paper states: “The government believes this is the right approach to take in order to ensure the CCM...

May 22, 2023

NewsFunding, Risk, UK

19MayMay 19, 2023

But What If a Pension Fund is Overfunded?

By James Tatum Currently, the consensus is that if a pension fund is less than 100 percent funded, it is underfunded.1 In other words, if the pension fund does not presently have all the assets needed to pay liabilities in the future (and without consideration of future contributions to the pension fund), the pension fund and retiree benefits are theoretically imperiled. So, out of concern for “underfunded” pension funds, of which there are many, there have been innumerable research papers,...

May 19, 2023

Articles, Pension Management2023, Funding, US

June 2023

U.S. public pension funding dips in May – Milliman

U.S public pensions are building for the long-term. How pension plans are reacting after a year of shocks

US Pension Funded Status Continues to Improve in May

Funding ratios for U.S. corporate pension plans increase in May

May 2023

UK. Derisking well funded DB schemes may be an opportunity missed

Pension Reform: Conceptual Foundations and Practical Challenges

EU. MEPs face 50% cut to luxury pensions, but public still set for hefty bill

UK. Treasury to bear risk of unfunded legacy public sector schemes

But What If a Pension Fund is Overfunded?