Industry Updates

Retirement Update – June 2019

Retirement Update – June 2019

2019 had been a fun ride for pension plan sponsors through the start of May, however the past few weeks have been less than fun. Year-to-date performance is still likely to be positive for most plans, but falling interest rates and negative equity returns during the month likely took a big chunk out of 2019’s gains. There’s no silver lining to be found here, as May was a bad month all around for pension plans.

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Pension Plan Annuity Purchase Update – Q1 2019

Pension Plan Annuity Purchase Update – Q1 2019

Market ActivitySource: LIMRA Secure Retirement InstituteFollowing the record-breaking $26.3 billion in 2018, total pension buyout sales eclipsed $4.7 billion in Q1 2019, an increase of 240% compared to Q1 2018. Sales were driven by many small and mid-sized...

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Interest Rates – Where to From Here?

Interest Rates – Where to From Here?

Understanding the dynamics that drive interest rates is critical to understanding the level of current rates, why they have changed in the past, and how they might change in the future. This understanding allows investors and pension sponsors to make informed decisions on how to deploy their bond portfolios and what to expect from their long-term, interest rate-sensitive liabilities.

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Retirement Update – May 2019

Retirement Update – May 2019

The month of April increased funded status gains since the beginning of the year. For most plans, gains since the beginning of the year should be up by about 2% to 3%. Equities added to 2019’s strong returns, with US equities leading the way in April.

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Pension Plan Annuity Purchase Update – Q4 2018

Pension Plan Annuity Purchase Update – Q4 2018

Market ActivitySource: LIMRA Secure Retirement InstituteTotal pension buyout sales once again increased in 2018. Q4 sales totaled nearly $10.5 billion which brings total 2018 sales to $26.4 billion, compared to $23 billion in 2017. While Q3 and Q4 sales...

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Retirement Update – April 2019

Retirement Update – April 2019

The month of March gave back some of the funded status gains since the beginning of the year. For most plans, gains since the beginning of the year should still be up by about 1% to 2%. Equities added to 2019’s strong returns, with global equities up over 10% year to date. The fall in discount rates and the corresponding increase in liabilities remind us of the impact that changes in rates have on a pension plan’s funding status.

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Retirement Update – March 2019

Retirement Update – March 2019

Key Takeaways: Discount rates were relatively stable. February was a quieter month for bond markets following prior volatility in both US Treasury yields and corporate bond yields. Equities rose as markets continued to look beyond recent concerns about...

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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...

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Retirement Update – February 2019

Retirement Update – February 2019

2019 is off to a great start for the vast majority of pension plans. Equities saw increases across the board, with small cap equity leading the way with returns of over 11% for the month, and international equities bringing up the rear with returns of over 7%.

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Pension Plan Annuity Purchase Update – Q3 2018

Pension Plan Annuity Purchase Update – Q3 2018

Market Activity Source: LIMRA Secure Retirement Institute Through the first three quarters of 2018, pension buy-out sales continue on a record-breaking pace. Q3 sales totaled $6.3 billion which brings year to date sales to $15.9 billion, compared to $11.9...

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