September 2023
07Sep

US. Washington taking aim at pension risk transfer market, but is anything broken?

The U.S. pension risk transfer market is booming as more companies look to shed their pension liabilities, but changes to the rules governing such transactions could be coming, which is making some stakeholders nervous. "What I worry about is that we see something proposed that disrupts the system that's working well," said Kent A. Mason, a Washington-based partner at law firm Davis & Harman LLP and outside counsel for the American Benefits Council. "To me, where do you go from the...

September 7, 2023
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06Sep

U.S. Public Pension Plans Sustain Support for ESG Resolutions

Political rhetoric about the aims and efficacy of environmental, social, and governance-focused investing has turned heated in the past year. Public pension funds—irretrievably tied to politics by nature of their public funding—continued demonstrating strong support for ESG shareholder resolutions in the 2022 proxy season, according to a Morningstar review of some of the largest U.S. pension funds. The full study can be found here. These resolutions varied from calls for companies like Costco COST and Berkshire Hathaway BRK.A to reduce greenhouse gas emissions to proposals for...

September 6, 2023
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06Sep

U.S. corporate pension plan funding ratios down slightly in August

U.S. corporate pension plan funding ratios dipped slightly in August, but they still remain well above 100%, according to three new reports. Legal & General Investment Management America estimated the average funding ratio of the typical U.S. corporate pension plan fell to 103.6% as of Aug. 31 from 104.9% a month earlier. In its latest monthly Pension Solutions Monitor, LGIMA said the estimated average funding ratio rose despite liability values dropping, because both global and domestic equities suffered weak performance during August. The...

September 6, 2023
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05Sep

US. What Public Pensions Could Do for Private-Sector Retirees

Once upon a time, before the era of 401(k) plans and takeover capitalists eviscerating many company pension funds, defined-benefit pension plans were America’s primary supplement to Social Security. Back then, the actuarial assumptions were generally reasonable, even for the public pension systems, before some of the latter strayed down the path of unsustainable benefits promises and fishy math. Needless to say, times have changed, and nowadays the vast majority of Americans have very few guarantees of lifetime income other...

September 5, 2023
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04Sep

US. Biden’s pension relief flows to IG bonds

A large part of this infusion is making its way into the bond market this year, either in the form of investments in highly rated corporate paper or US Treasury debt. “A lot of money is coming from the pension relief provided by the government,” said a senior DCM banker. The Special Financial Assistance programme is intended for so-called Taft-Hartley pension plans, such as those run by labour unions like the Teamsters, which represents millions of truck drivers and delivery workers...

September 4, 2023
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01Sep

The Demographic Outlook: 2022 to 2052

By Congressional Budget Office The size of the U.S. population, as well as its age and sex composition, affect the economy and the federal budget. For example, the size of the working-age population affects the number of people employed; likewise, the size of the population age 65 or older affects the number of beneficiaries of Social Security and other federal programs. The Congressional Budget Office projects the population in future years by projecting fertility, net immigration, and mortality. (In this report,...

September 1, 2023
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01Sep

US. DOL auditing some multiemployer plans following PBGC aid, attorney says

The Department of Labor has sent investigative letters to several multiemployer pension plans that have received special financial assistance from the Pension Benefit Guaranty Corp. and had previously suspended benefits under a 2014 law, according to an attorney who works with such plans. Investigators with the Labor Department's Employee Benefits Security Administration are seeking information on plan policies and procedures related to special financial assistance as well as the makeup payments to participants and beneficiaries who experienced suspension of their...

September 1, 2023
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August 2023
30Aug

Vanguard support for ESG shareholder proposals down from last proxy year

Vanguard funds supported only 2% of shareholder resolutions on environmental and social issues at its U.S. portfolio companies in its 2023 proxy year, down from 12% in the prior proxy year. The proxy year lasts from July 1 through June 30, according to a brief published by Vanguard's investment stewardship team on Monday. Specifically, Vanguard said that in proxy year 2023 the firm saw 359 environmental and social proposals put forward for a vote at its U.S. portfolio companies, up from...

August 30, 2023
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29Aug

US. North Carolina Retirement Systems discloses $500 million in commitments

North Carolina Retirement Systems, Raleigh, committed a total of $500 million to private equity and inflation-sensitive asset funds. The $114.6 billion pension fund disclosed the commitments in a report included with the Aug. 23 investment advisory committee meeting materials on the website of Dale R. Folwell, state treasurer and sole trustee of the retirement system. The commitments closed in June and July of this year, according to the report. Within private equity, NCRS committed $150 million each to Hg Titan 2...

August 29, 2023
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28Aug

US. IRS Postpones Rule That Hit Older, High Paid 401(K) Savers-And Their Employers

The IRS is again pushing off a start date for new legislation by introducing a transition period. Earlier, the IRS declared a one-year delay in the new reporting requirement for Forms 1099-K. The IRS has now announced an administrative transition period for the new catch-up contribution requirements under the SECURE 2.0 Act. The new rule requires older, higher paid 401(k) participants to make their catch-up contributions into after-tax Roth accounts, instead of pre-tax traditional accounts. Congress meant for it to take...

August 28, 2023
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