Retirement Plan Provisions in the Coronavirus Stimulus Bill

Retirement Plan Provisions in the Coronavirus Stimulus Bill

Retirement Plan Provisions in the Coronavirus Stimulus Bill On March 27th, 2020, Congress passed and the President signed the CARES Act, a massive stimulus package in response to the ongoing public health and economic crisis caused by the COVID-19 pandemic. Among the...
Improving Expected Returns: Corporate Defined Benefit Plans

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...
PBGC Premium Increases Continue – How Sponsors Can Fight Back

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...
Pension Investing – Hedging Interest Rate Risk with a Collar

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...
Convexity – The Forgotten Risk for Pension Plans

Convexity – The Forgotten Risk for Pension Plans

Convexity – The Forgotten Risk for Pension Plans Pension risk is asymmetric in more ways than one Most sponsors of corporate pension plans are familiar with their risk being asymmetric: they only benefit to a point if a plan’s funding level improves, but are on...
Pension Investing – Why Equity Derivatives Now?

Pension Investing – Why Equity Derivatives Now?

Pension Investing – Why Equity Derivatives Now? Equity returns of 15% or higher would usually be cause for celebration among corporate pension plan investors. However, despite these strong returns, many plan sponsors have seen a decline in their funded ratios...