US. Single-Employer Plans Can Lower Target Returns to 4% and 5%
What can corporate allocators expect now that the pension relief bill has passed? For starters, they can target lower returns and pursue less risky investment strategies. Plan sponsors at single-employer pension plans can reduce their return targets to as low as 4% or 5%, versus higher targets of 6% or 7%, when they extend their amortization periods to 15 years as a result of the stimulus bill, according to calculations from asset manager Insight Investment. Earlier this month, several provisions passed...
