New Mortality Tables Released – What it Means for Plan Sponsors

New Mortality Tables Released – What it Means for Plan Sponsors

Quick overview – what’s new The Society of Actuaries (SOA) published new mortality base tables and a new mortality improvement scale in late October. These new releases are likely to result in relatively small changes to plan sponsor income statements and balance...
Retirement Update – November 2019

Retirement Update – November 2019

Monthly Retirement Update Key Takeaways: Discount rates were little changed over the past month. Equity returns, especially international and emerging market returns, had noticeable gains. October funding levels most likely modestly improved as assets outpaced...
Improving Expected Returns: Corporate Defined Benefit Plans

Improving Expected Returns: Corporate Defined Benefit Plans

Many corporate defined benefit pension plans utilize interest rate derivatives and/or Treasury STRIPS to manage interest rate risk. They also typically have large allocations to active fixed income managers as part of their liability-matching bond portfolios....
PBGC Premium Increases Continue – How Sponsors Can Fight Back

PBGC Premium Increases Continue – How Sponsors Can Fight Back

The Pension Benefit Guaranty Corporation (PBGC) has announced the2020 Plan Year premium rates. This announcement reminds plan sponsors that providing the same pension benefits continues to be more and more expensive, especially if they maintain underfunded...
Pension Investing – Hedging Interest Rate Risk with a Collar

Pension Investing – Hedging Interest Rate Risk with a Collar

Interest rates can move pension funded status up or down significantly. An interest rate collar can protect funded status against a decline in rates, while rate increases can still improve funded status. We’ve seen significant interest rate volatility in 2019.  Recent...
Retirement Update – November 2019

Retirement Update – October 2019

Monthly Retirement Update Key Takeaways: September offered some respite for plan funding levels with interest rates increasing from recent lows. Typical discount rates increased 14bps in September but remain down about 100bps since year-end 2018. Equity markets...