Funding Archives - Page 17 of 36 - Pension Policy International

18AprApril 18, 2023

Do state and local pension plans really need to be fully funded?

The Center for Retirement Research’s most recent undefined makes a strong case for shifting the focus of fiscal sustainability for state and local pension plans from full funding to stabilizing their pension debt as a share of the economy. While full funding is tidy in the sense that, if the pension were to shut down, assets would be available to pay full benefits, it involves a significant opportunity cost in terms of forgoing public investment in infrastructure and education. To assess...

April 18, 2023

NewsFunding, US

31MarMarch 31, 2023

Does Common Ownership Affect Employee Welfare? Evidence from Corporate Pension Funding

By Charles Hsu, Zhiming Ma & Kaitang Zhou This study examines the effect of common institutional ownership on corporate pension funding. We posit that a common owner’s incentive to maximize shareholder value may come at the cost of employee welfare. Consistent with this prediction, we find robust evidence that firms with common ownership demonstrate greater pension underfunding than firms without common ownership. This effect increases with firms’ value-added activities, common owners’ shareholding, duration of ownership, and portfolio size. It decreases...

March 31, 2023

Articles, Pension Management2023, Defined Benefit, Funding

10MarMarch 10, 2023

Pay-as-They-Get-In: Attitudes Towards Migrants and Pension Systems

By Tito Boeri, Matteo Gamalerio, Massimo Morelli & Margherita Negri We study whether a better knowledge of the functioning of pay-as-you-go pension systems and recent demographic trends in the hosting country affects natives' attitudes towards immigration. In two online experiments in Italy and Spain, we randomly treated participants with a video explaining how, in pay-as-you-go pension systems, the payment of current pensions depends on the contributions paid by current workers. The video also explains that the ratio between the number of...

March 10, 2023

Articles, System Characterization, System Sustainability2022, Aging, Funding, Labor Market, Migration

07MarMarch 7, 2023

U.S. corporate pension funding increases in February – 3 reports

U.S. corporate pension plans' funding ratios increased in February as falling liability values offset a drop in assets, 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 99.9% as of Feb. 28, up from 99.8% a month earlier. In its latest monthly Pension Solutions Monitor, LGIMA said the estimated average funding ratio rose slightly in February because the increase in discount rates, which caused liability...

March 7, 2023

NewsFunding, Occupational Pensions, US

15FebFebruary 15, 2023

Total U.K. pension fund surplus, funding ratio decrease slightly in January

The aggregate surplus of U.K. defined benefit funds covered by the PPF 7800 index decreased slightly in January, by 0.6% to £374.4 billion ($463.4 billion). The surplus more than doubled for the year ended Jan. 31, from £146.4 billion, according to a Tuesday update by the Pension Protection Fund, London. The PPF is the lifeboat fund for pension funds of U.K. insolvent companies. The aggregate funding ratio was 134.8% as of Jan. 31, compared with 136.5% as of Dec. 31. The...

February 15, 2023

NewsFunding, UK

08FebFebruary 8, 2023

UK. New Funding Code could affect how pension schemes are run

UK pension schemes are expecting the Defined Benefit (DB) Funding Code, currently in consultation, to affect the way they are run in the future, a recent poll by Aon has found. At a recent Aon webinar on the funding code consultation, almost 250 attendees were asked how material they thought the new funding regime would be to the way their schemes are run, with 42% of respondents indicating that they thought it would have either a moderate or a significant...

February 8, 2023

NewsFunding, Pension Management, Regulation, UK

27JanJanuary 27, 2023

South Korea pension fund will deplete faster than expected, report says

South Korea's huge national pension fund is set to see its pool of money depleted by 2055, earlier than expected, because of a shrinking population amid low economic growth, an official estimate showed on Friday. A government panel commissioned for the estimate, made every five years, said in a report that the National Pension Service (NPS) would see its fund depleted two years earlier than 2018 estimate predicted. The NPS had 915 trillion won ($743.13 billion) of funds as of the...

January 27, 2023

NewsAging, Funding, South Korea

24JanJanuary 24, 2023

U.K. pension plan sponsors might need to contribute $42 billion more – analysis

New funding rules for U.K. defined benefit plans being developed by The Pensions Regulator could potentially mean plan sponsors will need to make up to £34 billion ($42 billion) in additional contributions, according to an analysis published Monday by investment consultant Lane Clark & Peacock. The forthcoming funding rules call for pension funds to be funded on a "low dependency" basis once they are "significantly mature," without further specifics. It also calls on trustees to expect sponsors to pay down...

January 24, 2023

NewsFunding, Regulation, UK

19JanJanuary 19, 2023

These 2 states account for a third of America’s public-sector pension crisis

Step forward, California and Illinois! Your state and local pension funds are so badly funded that you two states, alone, account for about one-third of the entire U.S. pension-fund crisis. California’s public-sector pensions have a staggering accounting hole of $274 billion, according to the latest report from the Equable Institute think tank. Illinois public-sector pensions are in the hole to the sum of $210 billion — and you could argue that is even more remarkable because Illinois, the U.S.’s sixth most...

January 19, 2023

NewsFunding, US

18JanJanuary 18, 2023

U.S. State, Local Public Pensions Saw Funding Statuses Fall in 2022

The national average funded ratio for U.S. state and local public pension plans is estimated to have declined from 83.9% in 2021 to 77.3% in 2022, once all public pensions release their 2022 data, according to a recently released end-of-year report on public pensions from the Equable Institute. Equable used figures from 76.4% of the 225 retirement systems with available data that reported preliminary investment returns for their full fiscal 2022 to inform the prediction. The remaining plans with available...

January 18, 2023

NewsFunding, Public Pensions, US

April 2023

Do state and local pension plans really need to be fully funded?

March 2023

Does Common Ownership Affect Employee Welfare? Evidence from Corporate Pension Funding

Pay-as-They-Get-In: Attitudes Towards Migrants and Pension Systems

U.S. corporate pension funding increases in February – 3 reports

February 2023

Total U.K. pension fund surplus, funding ratio decrease slightly in January

UK. New Funding Code could affect how pension schemes are run

January 2023

South Korea pension fund will deplete faster than expected, report says

U.K. pension plan sponsors might need to contribute $42 billion more – analysis

These 2 states account for a third of America’s public-sector pension crisis

U.S. State, Local Public Pensions Saw Funding Statuses Fall in 2022