March 2023
02Mar

US. How Environmentally Conscious Investing Became a Target of Conservatives

It’s been a widely accepted trend in financial circles for nearly two decades. But suddenly, Republicans have launched an assault on a philosophy that says that companies should be concerned with not just profits but also how their businesses affect the environment and society. More than $18 trillion is held in investment funds that follow the investing principle known as E.S.G. — shorthand for prioritizing environmental, social and governance factors — a strategy that has been adopted by major corporations...

March 2, 2023
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01Mar

U.S. pension plan buyouts reach record volume in 2022

U.S. corporate pension plan buyout sales totaled a new all-time high of $48.3 billion in 2022, a LIMRA survey found. The new all-time high for U.S. pension buyout sales topples the previous record of $36 billion set in 2012 and is up 42% from the 2021 volume total of $34.2 billion. The total number of buyout contracts also hit an all-time high, reaching 562 for all of 2022, which well exceeded the previous record of 500 contracts set in 2019. "Rising interest...

March 1, 2023
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February 2023
28Feb

US. House Democrats introduce bill to codify DOL ESG rule

As backlash ramps up against the Department of Labor's new rule permitting retirement plan fiduciaries to consider climate change and other environmental, social and governance factors when selecting investments, House Democrats introduced a bill to codify the rule into law. The Freedom to Invest in a Sustainable Future Act, like the Labor Department's Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights rule that took effect Jan. 30, stipulates that plans may consider ESG factors in their investment...

February 28, 2023
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24Feb

Fixed and Variable Longevity Annuities in Defined Contribution Plans: Optimal Retirement Portfolios Taking Social Security into Account

By Vanya Horneff, Raimond Maurer & Olivia S. Mitchell This paper investigates retirees’ optimal purchases of fixed and variable longevity income annuities using their defined contribution (DC) plan assets and given their expected Social Security benefits. As an alternative, we also evaluate using plan assets to boost Social Security benefits through delayed claiming. We determine that including deferred income annuities in DC accounts is welfare enhancing for all sex/education groups examined. We also show that providing access to well-designed variable...

February 24, 2023
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24Feb

U.S. Here’s how much 401(k) plans fell last year

Saving for retirement requires looking at the big picture, but it can be dispiriting when your 401(k) or other retirement plan takes a beating — a common plight for American workers last year, according to new data from Fidelity. The average balance in a 401(k) plan tumbled 20.5% in 2022, reducing employee nest eggs to $103,900 at the end of 2022, Fidelity said on Thursday. That compares with an average balance of $130,700 a year earlier, the financial services firm...

February 24, 2023
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23Feb

Willis Towers Watson dives into U.S. market for pooled employer plans

After launching pooled employer plans in the U.K. and Europe, Willis Towers Watson is hitting the U.S. market with its own PEP offering. In a news release Thursday, the British-American multinational company announced that it had launched LifeSight PEP, a pooled employer plan for the U.S. market that it says "simplifies 401(k) plan sponsorship for employers and improves outcomes for their employees." The pooled employer plan will use Transamerica as its record keeper. The company will pursue employers with anywhere from a...

February 23, 2023
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22Feb

Higher Pension Costs, Earnings Hits Loom as Interest Rates Rise

Telecommunications giant AT&T Inc. cautioned investors this quarter about a rising corporate cost would ding its full-year earnings guidance. The culprit was pensions, and in particular, higher interest rates affecting its calculation to tally pension costs.   The company said it expected adjusted earnings per share in the range of $2.35 to $2.45—a range that trailed analyst estimates—because of nearly 20 cents per share of “headwinds associated with non-cash pension costs,” Chief Financial Officer Paschal Desroches said on the company’s fourth...

February 22, 2023
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20Feb

Social Security Benefits: The Good and Bad News for Retired Workers in 2023

Social Security is a major source of financial well-being in retirement. Nearly 49 million retired workers received benefits in January, and about half of people aged 65 and older get at least 50% of their family income from Social Security. Given its importance, retired workers should try to stay informed on the program, and there have been several big changes already this year. Inflation scorched the U.S. economy last year, driving up the cost of gasoline, groceries, and other necessities...

February 20, 2023
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15Feb

US. SEC Proposes Rule Making It Harder For Crypto Firms To Work With Hedge, Pension Funds

The U.S. Securities and Exchange Commission (SEC) is set to propose rule changes that would make it harder for crypto firms to be designated as "qualified custodians," Bloomberg reported. The new rules would allow crypto firms to hold client assets for money managers. While the proposed changes have not yet been released, they could make it more difficult for institutional funds that have invested in cryptocurrency to comply with regulatory requirements for holding client assets. These funds may need to move their...

February 15, 2023
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14Feb

US. Are Pensions the Answer to the Public-Sector Worker Shortage?

It’s widely known that state and local governments are struggling to recruit and retain workers. In Maryland, there are about 6,000 job postings available. And in Wayne County, Michigan, another approximately 1,000 jobs are available. These mounting vacancies can threaten the continuity of vital public services in public safety, education and transportation.   But as the number of layoff announcements in the private sector increase and a record number of Americans withdraw funds from their 401(k)s as a result of financial...

February 14, 2023
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