July 2024
22Jul

How U.S. pension funds help Putin’s gas gambit

Russia needs to ramp up liquefied natural gas exports to replenish Kremlin coffers and fund its war in Ukraine. Western pension funds may inadvertently be lending a hand. Data compiled by investigative consultancy Data Desk and the Anti-Corruption Data Collective show that public retirement funds, including those managed by the states of Washington, New York and California, have indirectly invested in the specialized ice-class carriers serving Russia’s Yamal LNG — the country’s largest active gas export terminal and a vital...

July 22, 2024
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19Jul

Most US adults worry about future of Medicare, Social Security, Gallup poll finds: ‘Magnitude of concern’

Adults in the U.S. are more worried than ever about whether Medicare and Social Security benefits will be available when they need them. In response to a Gallup poll released in June, 75% of adults age 65 and younger said they are “worried” or “extremely worried” about lack of Medicare availability, according to a press release. When it comes to Social Security benefits, 80% of survey respondents said the same. HEALTH CARE IS ‘OVERWHELMINGLY COMPLEX’ FOR OLDER ADULTS, EXPERTS SAY: ‘EVER-INCREASING HURDLE’ Both of those percentages...

July 19, 2024
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18Jul

What The U.S.’s Largest Pension Fund Can Teach About Investing Right Now

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. CalPERS, the California Public Employees' Retirement System, is the nation’s largest pension fund and one of the largest private equity investors in the world. With over two million members relying on its every move, the organization takes its investing very seriously. Its most recent report gives us a window on what is and isn’t paying off for it right now and what investors...

July 18, 2024
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17Jul

US. Rallying Stock Market May Help Public Pensions Reduce Shortfall This Year, Study Finds

KEY TAKEAWAYS State and local government-sponsored employer pension funds are projected to earn a 7.4% market return this year. However, these pension funds still face a long-run funding shortfall of more than $1 trillion, according to a new study by a nonprofit think tank working with the public retirement system. Public pension funds have increased their investments in hedge funds, private capital, and real estate to boost returns. It’s been a good year for pension funds. While public pension funds...

July 17, 2024
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15Jul

US. The $25 Trillion System of Retirement Savings Needs Fixing

Few Americans today know much about Studebaker or Packard automobiles. Classic car aficionados recall their sleek, innovative designs, but the brands are also a reminder of another bygone era: the traditional defined benefit pension. Studebaker and Packard merged in 1954 and later went out of business. Their pension plans were terminated, leaving thousands of workers without their expected benefits. That, along with other pension plan failures, prompted efforts to make retirement savings safer, culminating in federal legislation that has shaped much...

July 15, 2024
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12Jul

US. DOL may review ‘derisking’ pension risk transfers, says congressional report

A recent Department of Labor report to Congress reaffirming current fiduciary standards for selecting annuity providers in defined benefit pension plans also includes notice that it may review the increasingly common, and controversial, practice of companies transferring pension risks to life insurers, commonly known as “derisking.” The report by the DOL’s Employee Benefits Security Administration (EBSA), which was mandated by 2022’s SECURE 2.0 Act, reviews its 1995 Interpretive Bulletin 95-1 that outlined the responsibilities of fiduciaries under the Employment Retirement Income Security...

July 12, 2024
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11Jul

70% of U.S. employers say benefits critical to attraction, retention efforts: report

Nearly three-quarters (70 per cent) of U.S. employers say their company’s benefits package is critical to attracting and retaining the best workers, according to a new report by LIMRA. It found half (51 per cent) of employers believe their company will be offering more benefits in the future than it does today and another six in 10 (61 per cent) said their employees will expect a wider variety of benefits options. Indeed, many employees — especially middle-income workers, younger workers and those...

July 11, 2024
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11Jul

U.S. companies’ pension funds poised to stock up on corporate debt after big gains

The pension funds of U.S. companies are poised to shift billions of dollars into corporate credit, after months of stock-market gains and higher bond yields have left them awash with cash, analysts and advisers said. Corporate pension plans had 103.7% of the funding they need to meet obligations as of June, the highest level since 2022, according to the Milliman 100 Pension Funding Index. That metric has dropped below 100% only four times since March 2022. Big gains in U.S....

July 11, 2024
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11Jul

Reality bites for Gen X retirement

The Slacker generation might have been slacking off when it came to planning for retirement: Gen X consistently ranks in surveys as the least-prepared group for when they stop earning. Why it matters: The first members of Gen X were born in January 1965, which means they turn 59½ this month and can start withdrawing money from 401(k) and other retirement accounts without paying a penalty. The big picture: As Gen Xers get older, they are getting increasingly worried about looming financial problems in...

July 11, 2024
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10Jul

US Remains Biggest Force in Pension Realm, per Study

The U.S. continues to dominate the world’s pension system, according to a study by the Thinking Ahead Institute, a research organization sponsored by financial services giant WTW. As of year-end 2023, U.S. pension assets (both defined benefit and defined contribution) made up 63.9% of the globe’s 22 highest-value pension-providing nations, up from 56.5% 10 years before, the study indicated. That may have something to do with the large amount U.S. pension providers allocate to equities—42%—over a span when stocks did well. Among the...

July 10, 2024
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