May 2021
24May

UK. Top British companies forced to pump £200bn into pension schemes to prop them up, figures reveal

Top British companies have been forced to pump £200billion into their pension schemes to avoid a drop in funding, figures reveal. Read also UK pension asset owners join Net-Zero Asset Owner Alliance Law firm Lane Clark & Peacock said the sum – equivalent to the economic output of Czechia – was needed to counter tumbling share prices and bond yields. Read also UK. One in five savers have three or more pensions It warned that firms were 'running just to stand still' and that...

May 24, 2021
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17May

Jamaica. Senator proposes to scrap NIS contributory system

Opposition Senator Damion Crawford has proposed that a portion of the general consumption tax (GCT) collected by the Government be used to pay pensions. In his proposal to scrap the current National Insurance Scheme (NIS) contributory system, Crawford pointed out that many Jamaicans are reluctant to pay over funds to the NIS, and only about 20 per cent subscribe to any pension scheme. Many, he said, are left destitute when they reach retirement. Employees and self-employed persons are required to be insured...

May 17, 2021
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06May

S&P 1500 Pension Funded Status Increased by 1 Percent in April

By Mercer The estimated aggregate funding level of pension plans sponsored by S&P 1500 companies increased by 1 percent in April 2021 to 96 percent as a result of an increase in equity markets, slightly offset by the decrease in discount rates. As of April 30, 2021, the estimated aggregate deficit of $102 billion USD decreased by $16 billion USD as compared to $118 billion USD measured at the end of March according to Mercer,[1] a global consulting leader and...

May 6, 2021
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06May

U.S. corporate pension funding inches up in April – 3 reports

Funding ratios for U.S. corporate pension plans increased in April, according to reports from Wilshire Associates, Legal & General Investment Management America and Mercer. All three firms noted strong equity markets as the primary driver for the increases, partially offset by a decrease in discount rates leading to rising liability values. Wilshire's monthly report said U.S. corporate pension plans' aggregate funding ratio rose 0.6 percentage points to 92.9% in the month ended April 30. The change was the result of a...

May 6, 2021
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April 2021
15Apr

2021 Corporate Pension Funding Study

By Zorast Wadia, Alan H. Perry, Charles J. Clark The 2021 edition of the Milliman Corporate Pension Funding Study (PFS) is our 21st annual analysis of the financial disclosures of the 100 U.S. public companies sponsoring the largest defined benefit (DB) pension plans. These 100 companies are ranked highest to lowest by the value of their pension assets that are reported to the public as of the end of fiscal year 2020, to shareholders, and to the U.S. federal agencies...

April 15, 2021
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March 2021
25Mar

Fully funded U.S. public pensions not necessary to ensure benefits -study

Most U.S. state and local government pension systems are not facing imminent crisis and do not need to achieve full funding to ensure benefits are paid to retired workers, according to a paper released on Wednesday by the nonprofit public policy Brookings Institution. Retirement plans for state and local government workers have nearly $5 trillion in assets, but would need an additional $4 trillion to meet all of their obligations to current and future retirees, according to the paper. Concerns over...

March 25, 2021
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18Mar

China to Raise Retirement Age to Offset Funding Shortfall  

China is the world’s most populated country but decades of a strictly enforced one-child policy, shortage of social security funds and a comparatively young retirement age is forcing Beijing to act in the face of a shrinking work force. Read also China. Power or Profits: Beijing’s Pension Dilemma Analysts estimate the country’s labor force will lose 35 million workers over the next five years and that during that same period, the number of citizens eligible for retirement will surge to more...

March 18, 2021
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18Mar

US Corporate Pension Funded Ratio Climbs to 92.9% in February

Funding for the 100 largest US corporate pension plans, as tracked by the Milliman 100 Pension Funding Index, improved by $67 billion in February as the plans’ aggregate funded ratio rose to 92.9% from 89.7%, thanks to a 26 basis point increase in the monthly discount rate. It was the fifth straight month funded ratios have improved. Read also U.S. Participants don’t know what is happening to their fees A paltry investment gain of 0.13% during the month led to a...

March 18, 2021
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February 2021
19Feb

Underfunded and Under Pressure, U.S. Pensions to Keep Investing in China

U.S. state pension funds that invested in Ant Group Co. were stung when the financial technology firm’s initial public offering was suddenly pulled on orders of China’s president. But few of these investors are swearing off Chinese private markets, where they still hope to reap big returns. Read also US Corporate Pension Funded Ratio Climbs to 89.8% in January Shock waves rippled through the investment world when China halted the initial public offering of Ant, which would have been the world’s...

February 19, 2021
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18Feb

US Corporate Pension Funded Ratio Climbs to 89.8% in January

The funded ratio of the 100 largest corporate defined benefit (DB) pension plans improved to 89.8% at the end of January from 88.1% at the end of December as their aggregate deficit fell below $200 billion for the first time in more than a year, according to consulting firm Milliman. With the help of a 16 basis point (bp) increase in the monthly discount rate to 2.62% from 2.46%, the plans’ funding improved by $39 billion in January as their...

February 18, 2021
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