News

Retirement Update – October 2018

Retirement Update – October 2018

There was no great place to invest during September. Fortunately for most pension plan sponsors, the decrease in plan liabilities will more than offset any losses due to poor asset returns. Plans heavily invested in large cap US stocks were best positioned to improve funded status in September, seeing a small equity return (~0.5%) combined with a 1-2% liability decrease.

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Pension De-Risking – The Next Evolution in Reducing Funded Status Risk

Pension De-Risking – The Next Evolution in Reducing Funded Status Risk

There has been an evolution of pension plan de-risking over the years, giving us 3 different versions. Many plan sponsors have avoided moving more quickly to de-risk using strategies 1-3 because of the negative impact that each of these can have on a sponsor’s reported profits as well as expected cash contributions to close a deficit. We are now poised for de-risking version 4.0, in which plan sponsors will utilize modern risk management tools to significantly reduce funded status volatility while maintaining expected returns.

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Is Your Defined Benefit Plan Ready for Termination?

Is Your Defined Benefit Plan Ready for Termination?

Part 1 of a 5 part series looking at the challenge facing plan sponsors; when and the how will plan termination occur, and how do you prepare for it. In other words: what do frozen plan sponsors need to do to make “the End” a good one?

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Retirement Update – September 2018

Retirement Update – September 2018

The current “bull” market, which began in March of 2009 (9.5 years ago!), is now the longest ever according to most measures, exceeding the old record of 3,453 days (from 1990 to 2000). The average bull market has lasted just over 5 years, and the average bear about 1.7 years (Source: The Economist).

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