June 2023
19Jun

US. Teacher pensions systems are increasingly underfunded, making teachers vulnerable and salaries less attractive

By Andrew G. Biggs Pensions are an important component of total compensation for most employees but particularly for public school teachers. Teachers tend to have relatively low salaries but retirement benefits that are considerably more generous than in a typical private-sector 401(k) plan. Yet the risk facing teachers is that many teacher pension plans are significantly underfunded, placing their employers under considerable financial strain, and reducing resources available for schools and for teacher pay and benefits. The funding shortfalls facing...

June 19, 2023
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19Jun

Mexico says 200 retired Mexican boxers who fought in California may be eligible for pensions

Mexico said Friday that more than 200 retired Mexican boxers who fought in California may be eligible for pensions. The little-known pension fund holds around $2.5 million. Boxers of any nationality over age 50 were eligible, as long as they had fought one fight per year for four years, or 75 professional rounds total, in California. Mexico’s Foreign Relations Department said it had a list of 206 Mexican boxers who might be eligible. The department said it had already located 23...

June 19, 2023
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16Jun

U.S public pensions are building for the long-term. How pension plans are reacting after a year of shocks

By Ortec Finance U.S. public pension plans have been through a torrid year of investment volatility, rising inflation and increasing interest rates. The Federal Reserve has raised rates nine times in succession taking the rate to 5% - the highest since 2007 – while CPI inflation climbed as high as 9.1% in June 2022. The most recent figure of 4.9% for April is good news but many analysts still expect further Federal Reserve rate rises. The series of economic shocks helps explain...

June 16, 2023
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16Jun

Long-Term Care Equality Index 2023

By Kelley Robinson & Michael Adams The Long-Term Care Equality Index (LEI) is a program of SAGE and the Human Rights Campaign Foundation (HRCF). The goal of the LEI is to create a network of LTCCs across the country that are providing a welcoming home for older LGBTQ+ people. The Long-Term Care Equality Index 2023 represents the first validated survey on LGBTQ+ inclusion in long-term care and senior housing communities. The Human Rights Campaign Foundation and SAGE are excited to present...

June 16, 2023
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16Jun

The Role of IRAs in US Households’ Saving for Retirement, 2022

By Sarah Holden & Daniel Schrass This paper presents survey results on the incidence of individual retirement account (IRA) ownership in the United States and the contribution, rollover, and withdrawal activity of IRA-owning households. IRAs play an important role in US households’ retirement saving: In mid-2022, more than four in 10 US households owned IRAs. Traditional IRAs were the most common type of IRA owned (31 percent of US households), followed by Roth IRAs and employer-sponsored IRAs. IRA-owning households often...

June 16, 2023
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16Jun

US. DOL working on updated fiduciary rule, SECURE 2.0 provisions

The Department of Labor's Employee Benefits Security Administration is aiming to release a rule proposal on fiduciary investment advice in the coming months and is working on a host of rules related to SECURE 2.0, according to its latest semiannual regulatory agenda. The agenda outlines EBSA's short-term and long-term priorities and notes it's working on seven items in the pre-rule stage, 10 in the proposed rule stage and three in the final rule stage. EBSA agendas in recent years have indicated...

June 16, 2023
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15Jun

US. “Forgotten” 401(k) Accounts Grow to $1.65 Trillion of Assets, According to New Analysis by Capitalize

Capitalize, the award-winning platform to transfer retirement accounts, today released an update to its widely-cited 2021 white paper, The True Cost of Forgotten 401(k) Accounts. The analysis highlights continued growth in the number of “forgotten” accounts which represent 401(k) savings that have been left behind by people who have changed jobs or terminated employment. According to the company’s research, as of May 2023, there are an estimated 29.2 million forgotten or left-behind 401(k) accounts in the U.S. representing $1.65...

June 15, 2023
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14Jun

US. GOP bill aims to block ERISA plans from funding firms linked to U.S. adversaries

Rep. Jim Banks, R-Ind., introduced a bill to block ERISA-governed retirement plans from making new investments in companies controlled by or based in Iran, North Korea, Russia and China. "Several states, including my home state of Indiana, divested their pension funds from China, but federally regulated ERISA plans continue to fund firms that are building up the People's Liberation Army, stealing U.S. intellectual property and participating in the Uyghur genocide," said Mr. Banks, who serves on the Select Committee on...

June 14, 2023
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13Jun

US Pension Funded Status Continues to Improve in May

Despite negative returns for many asset classes in the stock market, decreasing liabilities resulted in U.S. corporate pension funded status improvements in May, according to analysts. Pension discount rates rose almost one-quarter of a percentage point in May, erasing much of the fall in rates that had been seen so far this year, according to Agilis’s May Pension Briefing. This boost in funded status comes on the heels of a strong April for pension plans, as an increasing number of pension...

June 13, 2023
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12Jun

US. Social Security’s woes highlight need for holistic plan

Given Social Security's uncertain future, defined contribution executives say that it's important for plan sponsors to offer participants holistic retirement planning and encourage additional savings. The Old-Age and Survivors Insurance Trust Fund, which covers retirees and their families, is now set to reach depletion in 2033, according to an April report from the Social Security Board of Trustees. If that happens, the trust's income would be able to pay 77% of its scheduled benefits, the report states. A reduction in Social...

June 12, 2023
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