Defined Benefit Archives - Page 8 of 13 - Pension Policy International

04OctOctober 4, 2023

90% of U.S. companies with DB plans looking for exits via PRT – MetLife

Nearly 90% of U.S. corporations with defined benefit plans look to fully transfer all their liabilities in an average of just four years, according to a new poll conducted by MetLife. In MetLife's 2023 Pension Risk Transfer Poll, the insurer said 89% of respondents said they plan to fully divest all their liabilities. Among that population, they plan to do so in an average of 4.1 years. Also, 94% of respondents said they are weighing the DB plan's value against the...

October 4, 2023

NewsDefined Benefit, Risk, US

03OctOctober 3, 2023

UK. DB funding levels remain buoyant despite volatility

Pension scheme trustees have been urged to take the time to review their endgame options, after industry analysis revealed that UK defined benefit (DB) funding levels have continued to improve, despite ongoing volatility. Analysis from XPS Pensions found that, despite the Bank of England holding interest rates steady for the first time since late 2021, the aggregate surplus of UK DB pension schemes stood at around £169bn at the end of September. Aggregate scheme assets were also down over the month...

October 3, 2023

NewsDefined Benefit, Funding, UK

20SepSeptember 20, 2023

UK: Buying A Distressed Business With A Defined Benefit Pension Scheme

Alexandra Wood, Devi Shah and Andrew Block discuss the additional complexities which a PE firm will face when acquiring a distressed business with a defined benefit occupational pension scheme, in light of the protections afforded by both the UK legislative framework and the role and support of the Pensions Regulator. Mayer Brown is a global services provider comprising associated legal practices that are separate entities, including Mayer Brown LLP (Illinois, USA), Mayer Brown International LLP (England & Wales), Mayer Brown...

September 20, 2023

NewsDefined Benefit, Occupational Pensions, Regulation, UK

05JulJuly 5, 2023

Canada. DB pension plans improve in second quarter

The health of Canadian defined benefit pension plans continued to improve in the second quarter of 2023, according to consulting firm Mercer. The company said the median solvency ratio of defined benefit plans in its database ticked upward to 119% at the end of June, meaning more than half had a surplus of funds. That’s despite the U.S. debt ceiling scare and the lingering effects of the banking crises south of the border, Mercer said. Pension funds’ investment returns were mostly positive...

July 5, 2023

NewsCanada, Defined Benefit

30JunJune 30, 2023

Linear Risk Sharing in Intergenerational Pension

By Michail Anthropelos, An Chen, Steven Vanduffel & Morten Wilke We introduce and analyze a novel collective defined contribution plan (CDC) which guarantees upon retirement at least a target benefit as a lump sum. The guarantee is provided by the remaining working generations under a pre-determined linear intergenerational risk sharing (IRS) rule. Through a simulation-based study, we show that the CDC scheme consistently outperforms the comparable individual DC scheme in terms of risk-adjusted performance. An extensive sensitivity analysis indicates that this...

June 30, 2023

Articles, Pension design2023, Defined Benefit, Defined Contribution

22JunJune 22, 2023

Jamaica. Increases in NIS pensions

The Ministry of Labour and Social Security is reporting that the National Insurance Scheme (NIS) pensioners started receiving their increases in June. Addressing Wednesday’s post-Cabinet press briefing at Jamaica House, Portfolio Minister, Pearnel Charles Jr, said the pension rate increases range from 23 to 76 per cent under the National Insurance Scheme. “We are very pleased to report that our NIS pensioners began receiving their increases on June 15. It is very important for us to make sure that our pensioners...

June 22, 2023

NewsDefined Benefit, Income, Jamaica

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

05MayMay 5, 2023

Pension Reform: Conceptual Foundations and Practical Challenges

By Seamus H. 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...

May 5, 2023

Articles, Pension design, Regulation2023, Defined Benefit, Defined Contribution, Pension Reform, US

19AprApril 19, 2023

UK. ‘The current pensions system is not fit for purpose’

By Stephanie Hawthorne The death knell for defined benefit pension provision has been tolled many times, even if the final 'coffin nail’ has not quite yet been hammered into its lid. Millions of ordinary workers, from journalists, railway workers to shop assistants in WH Smith, enjoyed DB pensions without appreciating just how good a perk they were, until it was almost too late. What a failure in communications. Sadly, we have almost reached a tipping point when there will be no return...

April 19, 2023

News, OP Ed, Op-EdDefined Benefit, System sustainability, UK

October 2023

90% of U.S. companies with DB plans looking for exits via PRT – MetLife

UK. DB funding levels remain buoyant despite volatility

September 2023

UK: Buying A Distressed Business With A Defined Benefit Pension Scheme

July 2023

Canada. DB pension plans improve in second quarter

June 2023

Linear Risk Sharing in Intergenerational Pension

Jamaica. Increases in NIS pensions

May 2023

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

Pension Reform: Conceptual Foundations and Practical Challenges

Pension Reform: Conceptual Foundations and Practical Challenges

April 2023

UK. ‘The current pensions system is not fit for purpose’