May 2022
06May

US. Pension Risk Transfer Market Has Largest First Quarter in History

The pension risk transfer market had a total volume of $5.5 billion in the first quarter of 2022, according to a report by Legal & General. This is the largest first quarter for the PRT market in history. It represents a 45% increase from last year’s first-quarter volume of $3.8 billion and a 22% increase from 2020’s first-quarter volume of $4.5 billion. Two deals made during Q1 of 2020 were over $1 billion in volume. Read also U.S. corporate pension...

May 6, 2022
News, , ,
Read more...
05May

U.S. corporate pension plan funding rises in April

U.S. corporate defined benefit plan funding ratios rose in April despite poor market returns, primarily due to rising discount rates, which lowered liability values, three reports show. In Wilshire Advisors' monthly report, the aggregate funding ratio for U.S. corporate pension plans increased by 30 basis points in April, to 97.4% as of April 30 from 97.1% as of March 31. While assets fell 7.7 percentage points due to a troubled equities market in February, liability values offset those losses by dropping...

May 5, 2022
News, , ,
Read more...
04May

US. State Public Pension Fund Returns Expected to Decline

About 29 million Americans have been promised retirement benefits through state public sector pension systems. And more than half of those benefits depend on earnings generated by nearly $4 trillion in assets held in trust by those systems.1 However, with more than two-thirds of those assets allocated to risky investments—publicly traded stocks, also known as equities, and alternative vehicles, including private equity, real estate, and hedge funds—retirement systems’ ability to meet their commitments hinges largely on investments that are...

May 4, 2022
News, , ,
Read more...
04May

US. Study sheds light onto biracial, LGBTQ older adults for the first time

A new study presented at the 2022 American Society on Aging’s annual conference is hoping to shed light on the lived experiences connected to the health and well-being of older adults who identify as biracial/multiracial and bisexual. Deana Williams, PhD, MPH, lead researcher of the study and a research investigator at the MultiCare Institute for Research and Innovation, told SeniorsMatter while research is increasing for some of these groups – including lesbian, gay, bisexual and transgender (LGBT) older adults –...

May 4, 2022
News, , , ,
Read more...
02May

US Department of Labor at Odds with Fidelity’s Bitcoin Pension Plan

A senior agency official said he raised concerns about such plans given the volatility and risks that cryptocurrencies pose. The pension fund management company argues that this step only seeks to expand the supply of digital assets available and constantly growing. The Department of Labor takes issue with Fidelity Investments’ pension plan, which allows investors to hold Bitcoin in their 401(k) accounts. Officials consider these kinds of offers to pose a huge security risk to American retirees. "We have grave concerns with...

May 2, 2022
News, , ,
Read more...

April 2022
29Apr

Europe dominates green finance index, but U.S. cities catching up

Western European cities, led by London, continue to dominate when it comes to green finance, but U.S. cities are starting to catch up, according to the Global Green Finance index published Thursday by London consultancy Z/Yen Group. Compared with the first one published in March 2018, the ninth edition of the semiannual index found more correlation between U.S. cities' standing as financial centers and their green credentials, said Mike Wardle, a director and head of indexes for Z/Yen, in an...

April 29, 2022
News, , , ,
Read more...
29Apr

US. Companies Look to Diversify Their Pension Investments as Funding Levels Soar

Companies are looking for alternative investment options for their pension plan funds—for example, high-quality private credit—as they look to diversify their holdings amid high funding levels. Businesses in recent years have invested a greater proportion of their plans in fixed-income securities, which are considered safer bets than assets such as equities, commodities, private equity and real estate. S&P 1500 companies invested 51% of their plan funds in fixed income in 2021, up from 50% a year earlier and 42% a...

April 29, 2022
News, , ,
Read more...
28Apr

Retirement Savings Policy: Past, Present, and Future (The Alexandra Lajoux Corporate Governance)

By Michael P. P. Barry Retirement Savings Policy reviews the basic policies that govern retirement savings plans, and their real world application, focusing on the key issues of finance, taxation, fiduciary conduct, and employee choice. The discussion is framed around the three fundamental challenges confronting employers and employees today – the pension legacy, the 401(k) revolution, and the pressure, from policymakers, regulators, opinion leaders, and individuals, for changes that will put retirement security within reach of all Americans. With more...

April 28, 2022
Books, System Characterization, System Sustainability, , , ,
Read more...
28Apr

US. Senators float bill to give participants more lump-sum buyout info

A bill requiring pension plan sponsors to provide participants and retirees with key information when offering lump-sum buyouts was reintroduced Wednesday in the Senate. The legislation, the Information Needed for Financial Options Risk Mitigation Act, referred to as the INFORM Act, would require plan sponsors offering buyouts to provide participants and beneficiaries a paper notice 90 days before the period in which they must make an election; a comparison of benefits, explanation of how the lump sum was calculated, ramifications...

April 28, 2022
News, ,
Read more...
27Apr

US. New York City Wants to Amp Up Risk in Workers’ Pensions

New York City’s comptroller is the latest public official trying to change laws aimed at limiting risk in pension investments, as U.S. state and local pension funds try to plug shortfalls in a low-return environment. Comptroller Brad Lander, who oversees about $260 billion in retirement money for city police, firefighters, teachers and other public workers, is asking New York lawmakers for more flexibility to invest in private markets, high-yield debt and foreign stocks. The state comptroller’s office, which supervises another...

April 27, 2022
News, , ,
Read more...