July 2022
28Jul

U.S. House Votes to Restore Delphi Corp Salaried Pensions

The U.S. House of Representatives on Wednesday voted 254-175 to pass legislation that would restore the pensions of 20,000 salaried retirees of Delphi Corp., of which more than 5,000 live in Ohio. It’s the brightest sign yet for those workers whose pensions were assumed by the Pension Benefit Guaranty Corp. in 2009 when General Motors was steered through bankruptcy by the Obama Administration. The measure now moves to the U.S. Senate, which may take up the bill as early as today. Under...

July 28, 2022
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20Jul

FedEx to deliver $800 million to U.S. pension plans in fiscal year 2023

FedEx Corp., Memphis, Tenn., plans to make $800 million in voluntary contributions to its U.S. pension plans during its fiscal year ending May 31, 2023. The shipping company disclosed the contribution in its 10-K filing with the SEC on Monday. The injection of cash into the plans will come despite the lack of minimum required contributions under the Employee Retirement Income Security Act of 1974. In the most recent fiscal year ended May 31, FedEx contributed $533 million to the plans. FedEx...

July 20, 2022
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19Jul

Swiss corporates post over 20% drop in pension liabilities so far this year

Liabilities at Swiss companies’ pension schemes have continued to fall in the second quarter of 2022, leading to an overall decrease of over 20% since the beginning of the year, according to the latest quarterly Swiss Pension Finance Watch published by WTW. Pension liabilities on companies’ balance sheets have reached their lowest level in nine years in the second quarter of this year, WTW added. In Q1 liabilities dropped by over 12%. The decrease in the two quarters was caused by...

July 19, 2022
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06Jul

US. Biden to tout plan to protect millions of workers’ pensions

President Joe Biden will travel to Cleveland, Ohio, on Wednesday to announce a plan to prevent cuts to millions of workers' pensions. The launch of the program, created under the American Rescue Plan, comes as Biden's approval rating remains in the doldrums and consumer anxiety mounts over 40-year-high inflation. Under the final rule for the program, 2 to 3 million workers and retirees who faced pension cuts because of investment losses will get the benefits they were set to receive for...

July 6, 2022
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June 2022
08Jun

US. Senators introduce SECURE 2.0 companion

Less than two weeks after releasing a discussion draft, leaders of the Senate Health, Education, Labor, and Pensions Committee introduced a retirement security bill that will likely serve as a piece of the Senate's SECURE 2.0 package. Sens. Patty Murray, D-Wash., committee chairwoman, and Richard Burr-R-N.C., the committee's ranking member, introduced the Retirement Improvement and Savings Enhancement to Supplement Healthy Investments for the Nest Egg Act, or RISE & SHINE Act, and said their committee will markup the bill on...

June 8, 2022
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08Jun

US. Corporate Pension Health Continues to Worsen in May

U.S. corporate pension plans ended May with a drop in their aggregate funded status — a simple measure of their financial health. The funded ratio for U.S. corporate pension plans decreased by 0.9 percentage points from April 30 to May 31, according to Wilshire’s May 2022 U.S. corporate pension plans funding report. Specifically, the aggregate funded ratio of the combined assets and liabilities of corporate pension plans sponsored by S&P 500 companies dropped from 98 percent at the end of...

June 8, 2022
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May 2022
30May

UK. Pension savers struggle to consolidate pots

More than one in 10 (11 per cent) of pension savers are struggling to consolidate their pension pots, according to research from pension specialists iSipp. The consolidation of pension pots could reduce annual fees and save time on administration. However, more than one in 10 have tried to consolidate funds and failed, while nearly two out of five (38 paper cent) admit they do not know how to consolidate pensions into one fund. Just one in five (19 per cent) of those...

May 30, 2022
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05May

U.S. corporate pension plan funding rises in April

U.S. corporate defined benefit plan funding ratios rose in April despite poor market returns, primarily due to rising discount rates, which lowered liability values, three reports show. In Wilshire Advisors' monthly report, the aggregate funding ratio for U.S. corporate pension plans increased by 30 basis points in April, to 97.4% as of April 30 from 97.1% as of March 31. While assets fell 7.7 percentage points due to a troubled equities market in February, liability values offset those losses by dropping...

May 5, 2022
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March 2022

UK. Pension dashboards are coming - action for occupational pension schemes to take now
18Mar

UK. Pension dashboards are coming – action for occupational pension schemes to take now

Establishing a system of “pension dashboards” to enable individuals who have yet to take retirement benefits to find clear, standardised information about all their pension arrangements (including rights to state pension) in one place is a key element of the government’s pension strategy. The ambition is laudable but achieving it will be a mammoth task, requiring significant time and resource from occupational pension scheme trustees, pension managers and administrators. All UK occupational pension schemes with 100 or more non-pensioner members...

March 18, 2022
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10Mar

The Current State of U.S. Workplace Retirement Plan Coverage

By John Sabelhaus Despite widespread support for government policies aimed at improving workplace retirement plans, nearly half of wage and salary workers in the U.S. still lack coverage. The lack of employer-sponsored pensions or other workplace retirement saving plans has led to state-level government initiatives aimed at expanding coverage to workers whose employers do not offer such plans. Designing and implementing efforts to broaden workplace retirement plan coverage requires understanding what types of workers lack coverage, in terms of both...

March 10, 2022
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