November 2023
06Nov

South Africa: Potential Major Changes Affecting Occupational Retirement Plans

The South Africa government has proposed that changes to the two-pot retirement system, which gives workers access to pension funds before retirement, be delayed by a year. Employer Action Code: Act Draft legislation to amend South Africa's Income Tax Act and the Pension Funds Act would allow members of occupational retirement plans to access part of their future retirement accruals during employment, with the remainder accessible only upon retirement or death (known as the "two-pot" system). Existing payout rules would still...

November 6, 2023
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October 2023
26Oct

Inflation hits occupational pensions in Germany, says Deloitte

Inflation is having a negative impact on occupational pensions in Germany, with both the number of employers interested in, or contributing to company pension schemes declining this year compared with 2022, according to an occupational pensions study conducted by Deloitte. According to the research, 38% of the employers surveyed is “clearly” worried about losses in terms of retirement provision because of the current level of inflation, 14% consider the impact of increasing consumer prices on pensions dramatic, whereas only 14% is...

October 26, 2023
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18Oct

US. Corporate pension funded status drops

The average corporate pension funded status dipped to 104% in September from 104.4% the previous month, based on data tracked by NISA Investment Advisors for its Pension Surplus Risk index. In July, the funded status was 105.4%. NISA's PSRX, which measures the funded status volatility of U.S. corporate pension plans, rose to 6.9% in September. It was the third consecutive monthly increase. The PSRX measures a one standard deviation change in the funded status over a year. Hence, there is about...

October 18, 2023
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16Oct

US auto union strike: Carmakers say they cannot afford UAW demands

The United Auto Workers’ historic standoff with Detroit’s three carmaking giants is centered on an age-old tension: The union says corporate greed is keeping workers from earning fair wages, while Ford Motor Co., General Motors Co. and Stellantis NV say they can’t afford union demands. While both arguments have some merit, one fact stands out: The 10 individuals who’ve served as chief executive officers of the companies since 2010 have collected more than $1 billion of compensation. Meanwhile, wages of...

October 16, 2023
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10Oct

US Corporate Pension Funding Rises Slightly in September

U.S. corporate pension funding status increased in September, despite a decline in equities. September’s funding status was a return to the norm, following an August that saw pension funding decline for the first time this year.  Insight Investment found that pension funding status improved by one percentage point in August, to 107.5% from 106.5%. Equity losses were offset by a roughly 40 bps increase in discount rates, causing liabilities to decline faster than assets. Assets decreased by 4.5% in September,...

October 10, 2023
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06Oct

U.S. corporate pension funding rises in September on falling liabilities

U.S. corporate pension plan funding ratios increased in September despite a second straight month of negative market returns thanks to falling liability values, according to three new reports. Wilshire Advisors estimated the aggregate funding ratio of U.S. corporate plans increased 0.7 percentage points during the month to 105.3% as of Sept. 30. The increase was driven by the largest drop in liability values since September 2022 that resulted from the continued rise in U.S. Treasury yields, said Ned McGuire, managing director...

October 6, 2023
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03Oct

Japan wants companies to disclose pension fund performance

Japan is moving to urge companies to disclose their pension plan returns, Nikkei has learned, as part of an effort to improve how the nation's retirement savings are invested. The government will begin discussions Wednesday in a new panel on strengthening Japan's asset management sector. Proposed topics include disclosures on pension fund performance, ways to attract more talent in the field and allowing smaller companies to operate joint pension funds. The conclusions will be incorporated into a national plan to bolster...

October 3, 2023
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September 2023
26Sep

US Corporate Pensions at Healthiest Level in a Decade, Aon Data Shows

Pension plans for the largest U.S. companies are at their healthiest in over a decade, according to financial services firm Aon (NYSE:AON). The average pension "funded ratio" for public companies in the S&P 500 stock index was 102% as of last Thursday, marking the highest level since at least the end of 2011 when the ratio stood at around 78%. The funded ratio is a measure of a pension's financial health, comparing a company's pension assets against its liabilities. Essentially,...

September 26, 2023
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20Sep

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
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15Sep

2023 401 (k) Participant Study

By Charles Schwab  • The 2023 401(k) Participant study is an online study conducted by Logica Research. • The study was conducted from April 19 through May 2, 2023. • 1,000 401(k) plan participants completed the survey. • Ages 21-70 • Work for companies with 25+ employees that have 401(k) plans • Currently contribute to their companies’ 401(k) plans • Survey respondents include participants served by approximately 15 different retirement plan providers. • The typical (median) survey length was 10 minutes. Read book “here”

September 15, 2023
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