Roadblock Removed Allowing for Retiree Lump Sums

Roadblock Removed Allowing for Retiree Lump Sums

The IRS has given plan sponsors the green light to move forward with offering lump sums to defined benefit plan retirees or other participants who are “in pay status”, receiving monthly checks. Or perhaps it’s more accurate to say that they’ve removed the Stop sign....
2018 Pension Plan Report Card – C+ Year

2018 Pension Plan Report Card – C+ Year

Last year was a so-so year at best for most plan sponsors. For most of the year things looked good but by the end of 2018 there were few things to celebrate. The good news was that interest rates were up year-over-year, but, in December, rates gave up some of the...
Retirement Update – February 2019

Retirement Update – February 2019

Retirement Update Key Takeaways: Discount rates continued with meaningful decline, nearly replicating the drop from December. Equities were on the rise, making up much of December’s loss. Fixed income/hedging assets were up as well. Funded status likely improved...
Next Steps After an Annuity Purchase

Next Steps After an Annuity Purchase

You’ve just completed an annuity purchase for your pension plan. Congratulations, you reduced your plan’s risks (e.g. investment, regulatory, mortality, discount rate risks) and significantly saved PBGC premiums and administrative expenses! The contracts have been...
Mortality: Back to Where We Started

Mortality: Back to Where We Started

Second only to the discount rate, the mortality assumption is the biggest driver of the pension liability on plans sponsors’ balance sheets. New mortality tables issued in 2014 reflected the substantial improvements in US mortality during the previous few decades and...
Pension Investing – Next Generation of Glide Paths

Pension Investing – Next Generation of Glide Paths

Download a PDF version of this article here.Pension plan sponsors, especially those with frozen pension plans, have spent significant time deciding on the most appropriate balance between growth (return seeking/equities) and hedging (liability matching/long-term...