Funding Archives - Page 16 of 36 - Pension Policy International

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

19MayMay 19, 2023

UK. British Steel forges $3.4 billion buy-in to fully insure plan

British Steel Pension Scheme, Glasgow, Scotland, insured £2.7 billion ($3.4 billion) in liabilities through a buy-in with Legal & General Assurance Society, securing a buyout, according to a news release. The latest deal, which was the plan's fourth risk transfer deal since November 2021, covered the remaining 40% of liabilities and the benefits of all 67,000 plan participants. In 2017, the British Steel Pension Scheme was restructured after its plan sponsor, Tata Steel U.K., experienced financial difficulty. "Since the new scheme was...

May 19, 2023

NewsFunding, Pension Management, UK

12MayMay 12, 2023

“Milliman’s Pension Funding Index. May 2023”

By Milliman The funded status of the nation’s 100 largest corporate defined benefit pension plans decreased by $7 billion during April, as measured by the Milliman 100 Pension Funding Index (PFI). A decrease in the benchmark corporate bond interest rates used to value pension liabilities led to an increase in these liabilities of $10 billion for the month. As of April 30, the funded ratio fell to 99.5%, from 100.1% at the end of March. April saw the funding surplus...

May 12, 2023

Books, Books, Reports, System Characterization, System Sustainability2023, Funding, Occupational Pensions, US

08MayMay 8, 2023

US. Rising interest rates put corporate pension plans on end-game path

U.S. corporate pension plans are on average fully funded for the first time in 15 years, and plan executives are now in the unfamiliar position of being able to achieve the end state of their plans. The publicly traded U.S. companies with the 100 largest defined benefit plans can now boast an average funding ratio of 100.2% as of Dec. 31, according to Pensions & Investments' analysis of the latest 10-K filings. It is the first time the annual analysis has...

May 8, 2023

NewsFunding, Pension Management, US

04MayMay 4, 2023

U.S. Corporate pension plans stay at or near 100% funded in April

U.S. corporate pension plans remained at or near 100% funded in April after slightly positive returns and slightly falling discount rates kept the numbers from moving too much, according to three new monthly reports. Legal & General Investment Management America estimated the average funding ratio of the typical U.S. corporate pension plan was 100.5% as of April 30, up from 100.3% a month earlier. In its latest monthly Pension Solutions Monitor, LGIMA said the estimated average funding ratio rose in April...

May 4, 2023

NewsFunding, Public Pensions, US

28AprApril 28, 2023

Bank of England tells insurers to moderate their push into pensions

The Bank of England warned insurers on Thursday not over extend themselves in grabbing more business from pension schemes eager to offload risks. Charlotte Gerken, executive director for insurance supervision at the Bank, said that in the face of considerable temptation to capture business opportunities, insurers need to exercise caution. Bulk purchase annuities (BPA) are long-term policies from life insurers for company defined benefit, or final salary, pension schemes. Rising interest rates have improved funding levels of pension schemes, making them cheaper...

April 28, 2023

NewsFunding, Investment, UK

21AprApril 21, 2023

Shocks to Occupational Pensions and Household Savings

By Francesco Caloia, Mauro Mastrogiacomo & Irene Simonetti This paper studies the saving response of households to shocks in the capital position of their pension fund. Using survey panel data matched to supervisory data of Dutch occupational pension funds for a period that involved three major economic crises, we provide evidence of an increase in savings driven by a worsening of the financial position of pension funds. The identification strategy exploits cross-sectional and time variations in the funding ratios of...

April 21, 2023

Articles, Savings2023, Funding, Netherlands, Occupational Pensions

21AprApril 21, 2023

Management of Retirement Funds by Republican vs. Democrat States: Understanding the Differences

By Mustafa O. Caglayan, Edward R. Lawrence & Robinson Reyes-Peña As most of the state pensions in the USA deal with their respective funding crisis, we compare the management approaches undertaken by funds located in the states that are governed by Republicans vis-à-vis funds that are located in states governed by Democrats. We find that pension funds located in states governed by Republicans display a lower funding ratio compared to the pension funds located in states governed by Democrats. The...

April 21, 2023

Articles, Pension Management2023, Funding, Investment, Risk, State Pensions, US

May 2023

April 2023