January 2024
09Jan

U.S. pension risk transfer sales increased 39% in Q3 2023: report

U.S. pension risk transfer sales increased by 39 per cent during the third quarter of 2023, according to a report by LIMRA. It found single premium buyout sales were US$8.1 billion, 69 per cent lower than this time last year. Year-to-date, buyout sales fell 30 per cent to $28.9 billion compared to 2022. There were 203 buyout contracts in the quarter, a 40 per cent year-over-year increase, and year to date, there were 483 buyout contracts completed, more than double...

January 9, 2024
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09Jan

3M to freeze U.S. pension plans

3M Co., St. Paul, Minn., will freeze its U.S. pension plans for nonunion employees at the end of 2028. The company said pension-eligible nonunion employees will accrue benefits until Dec. 31, 2028, according to a Jan. 8 news release. 3M had closed its primary U.S. pension plan to new hires effective Jan. 1, 2009. The change will affect employees at both 3M and Solventum, the healthcare company that is expected to spin off from 3M in the first half of 2024. "This...

January 9, 2024
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08Jan

US. How the Gig Economy Is Reshaping Retirement Planning

As many as 50% of Americans have some sort of side gig, whether this is primarily how they make money, or in addition to a regular job. The gig economy, a phenomenon that may have emerged as a response to the high unemployment rates of the 2008-2009 recession, has become a part of American life, and it’s reshaping retirement. While these gigs offer workers more flexibility and variety, they may also come with some downsides, affecting how financially set people are for retirement. Some...

January 8, 2024
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05Jan

US. Expect familiar worries for 2024 as pension funds mull economy, interest rates

U.S. pension fund executives are taking a cautious approach to 2024, as they await the answer to how much the economy will slow and when and by how much the Federal Reserve may cut interest rates. While much remains unknown, they are seeking returns in places like fixed income and real estate, where they believe the greatest opportunities loom. There's also the matter of the upcoming U.S. presidential election. Christopher Ailman, chief investment officer of the $304.9 billion California State Teachers’ Retirement...

January 5, 2024
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03Jan

US. Largest U.S. corporate pension plans’ funding ratio hits 100% – WTW

The largest U.S. corporate pension plans' aggregate funding ratio reached 100% at the end of 2023, according to a new estimate from Willis Towers Watson. The analysis of pension plan data of 358 Fortune 1000 companies with defined benefit plans estimates the ratio increased from 98% at the end of 2022. WTW's estimated pension plan assets totaled $1.19 trillion as of Dec. 31, a decline of 1% from the previous year due to an active year in pension risk transfer transactions...

January 3, 2024
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December 2023
21Dec

US. Despite Concern from Lawmakers, US Pensions and Endowments Pour into China

American public pension funds and university endowments continue to invest billions in China, according to a report from Future Union, an advocacy organization. The “Rubicon Report” criticizes institutional investors and funds for financing what the organization calls adversarial states. According to data collected by Future Union, public pension funds in 43 U.S. states currently hold investments in China and Hong Kong, according to private and public databases as of June 30. Of the 74 largest pension funds, 29 have made...

December 21, 2023
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21Dec

US. Social Security rule for beneficiaries who keep working is ‘poorly understood,’ report finds

Workers who turn 62 years old might be tempted to increase their income by claiming Social Security retirement benefits. But those claimants should understand that their Social Security benefits may be temporarily reduced due to the income they earn. That Social Security rule — the retirement earnings test — is "poorly understood by the public," finds a new report from the Social Security Advisory Board, a bipartisan, independent federal agency. Between 20% and 50% of pre-retirees do not know that their monthly benefits might be lowered if they...

December 21, 2023
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20Dec

U.S. pension risk transfer sales dip in Q3 year over year, LIMRA survey shows

U.S. pension risk transfer sales totaled $10.4 billion in the third quarter, down for the year-over-year period, although there were a record number of contracts executed, a LIMRA survey found. The total volume in the third quarter fell below the record-setting third quarter of 2022, which saw a total of $26.1 billion in volume, according to the survey. However, the third quarter of 2022 experienced the record volume due to a single transaction. International Business Machines, Armonk, N.Y., purchased group annuity contracts...

December 20, 2023
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19Dec

Private credit attracts billions from U.S. pension funds

U.S. state and local retirement funds are pumping billions into private credit, joining the stampede into a booming sector of finance in the pursuit of higher returns. These systems are collectively allocating at least $100 billion of their roughly $5 trillion in assets into private debt, according to Equable, a bipartisan pension researcher founded by public finance leaders. While that's only a sliver of their holdings at present, funds' private credit positions have been steadily growing and are poised to...

December 19, 2023
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18Dec

AI poses risks to U.S. economy, Financial Stability Oversight Council says

For the first time, the Financial Stability Oversight Council in its annual report identified artificial intelligence as a vulnerability in the U.S. financial system. The council said financial institutions, market participants and regulatory authorities should further build expertise and capacity to monitor AI innovation and usage, and identify emerging risks. "AI has the potential to increase efficiency and innovation, but it also introduces certain risks," the council said in its report released Dec. 14. "Monitoring these rapidly emerging technologies will continue to be...

December 18, 2023
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