December 2022
26Dec

Equity Gains Boost U.S. Public Pension Funding Status, Says Milliman

Strong market gains during October and November helped the estimated funded levels of the 100 largest public pension plans in the U.S. rebound to 74.7%, as of Nov. 30, from 71.6% a month earlier, according to consulting firm Milliman’s public pension funding index. It was a sharp turnaround from September, when poor market performance erased more than five percentage points from the funded ratio during the month alone. The aggregate asset value of the pension funds increased by approximately $158...

December 26, 2022
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22Dec

Cuáles son los cambios que la propuesta Secure 2.0 propone a las reglas de jubilación en EE.UU.

El paquete de reformas con nuevas reglas para la jubilación conocido como Secure 2.0 facilitaría a los estadounidenses acumular ahorros para el retiro y también reducir el costo al momento de retirarlos Los estadounidenses que buscan retirarse podrían tener mejores condiciones de ahorro y de acceso a su dinero, si un paquete de cambios en las reglas de jubilación es aprobado esta semana en el Congreso. El paquete de nuevas reglas se conoce como Secure 2.0 y plantea siete cambios básicos...

December 22, 2022
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21Dec

US. New Spending Bill Makes It Easier for Americans Saving for Retirement

After years of negotiation, lawmakers introduced a retirement security package as part of a $1.7 trillion omnibus spending bill early Tuesday. The package, referred to as SECURE 2.0, includes several provisions, such as expanding automatic enrollment in 401(k) and 403(b) plans, enhancing the tax credit for small businesses launching a retirement plan and allowing employers to make matching contributions to a 401(k) plan, 403(b) plan or SIMPLE IRA based on qualified student loan payments. The package combines three bipartisan bills from...

December 21, 2022
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Turn the Ship: The Moral Imperative and Legal Authority to Protect Retirees with Defaulted Student Loans from Social Security Offset
21Dec

Turn the Ship: The Moral Imperative and Legal Authority to Protect Retirees with Defaulted Student Loans from Social Security Offset

By: Johnson Tyler The U.S. Department of Education (ED) is not powerless when it comes to debt collection or defaulted borrowers. It both has the moral imperative and legal authority to stop seizing Social Security benefits from elderly (62+) borrowers in default. An underutilized law allows an agency to exempt an entire class of debtors from Treasury Offset, the debt collection process that leads to the reduction of Social Security payments. This paper explains the history of offset; why recent...

December 21, 2022
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Declining US Natural Interest Rate: Quantifying and Qualifying the Role of Pensions
20Dec

Declining US Natural Interest Rate: Quantifying and Qualifying the Role of Pensions

By: Jacopo Bonchi & Giacomo Caracciolo We develop a life-cycle model and calibrate it to the US economy to quantify and qualify the role of the public pension system for the past and future trend of the natural interest rate, the so-called r∗. Between 1970 and 2015, past pension reforms mitigated the secular decline in r∗, raising it by around 1%, mainly through the positive effect of a higher replacement rate. As regards the future, we simulate the demographic trends, expected...

December 20, 2022
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Spending Trajectories after Age 65: Variation by Initial Wealth
20Dec

Spending Trajectories after Age 65: Variation by Initial Wealth

By: M Hurd & Susann Rohwedder   There has been extensive research on the importance of saving for retirement and on tools to support the accumulation of retirement wealth. Much less attention has been paid to the decumulation phase, that is, the spending down of wealth following retirement. Understanding the decumulation phase requires information about the spending patterns of older households and how those patterns evolve with age. This study uses comprehensive longitudinal data on total household spending from a survey...

December 20, 2022
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20Dec

US. Pension Risk Transfer Market Keeps Setting Records

The U.S. pension risk transfer market showed no sign of slowing in the third quarter of 2022, as market activity continues to reach new levels The year’s first quarter saw $5.3 billion in sales split about evenly between single premium buy-ins and buyouts, according to data from financial industry research organization LIMRA. That mark was 40% higher than 2021’s first quarter and the highest first-quarter result on record. There were no buy-in contracts sold in Q2, but single premium buyout sales...

December 20, 2022
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20Dec

The rise of age-friendly jobs and what employers need to know

Ageism in the workplace is a growing concern. A recent Washington Post story on the futility of age-discrimination lawsuits highlighted two troubling data points: In a recent survey conducted by the American Association of Retired Persons, 61% of workers 45 and older reported seeing or experiencing age discrimination. And a study by the Urban Institute and ProPublica found that 56% of workers 50 or older were pushed out of longtime jobs before they chose to retire. This economic and ethical...

December 20, 2022
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16Dec

U.S. public pension funding improves in November – Milliman

The overall estimated funding ratio of the 100 largest U.S. public pension plans rose to 74.7% at the end of November thanks to positive market returns, according to the Milliman 100 Public Pension Funding index. During the month of November, Milliman estimated that public pension plans had an aggregate investment return of 4.7%, with an estimated range of 2.5% to 7.2%. It was the second month in a row that estimated funding ratios rose because of market returns. Milliman estimated that...

December 16, 2022
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16Dec

US. Republicans introduce SEC oversight bill

As Republicans prepare to take control of the House next month, a trio a GOP lawmakers introduced a bill signaling added oversight and scrutiny coming to the Securities and Exchange Commission. The Review the Expansion of Government Act, or REG Act, introduced Wednesday by Rep. Young Kim, R-Calif.; Rep. French Hill, R-Ariz.; and Rep. Bill Huizenga, R-Mich., would require the SEC to review every final rule it promulgates every three years after implementation. The agency would be required to create a...

December 16, 2022
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