Tag: DB

Defined benefit retirement plan

Multiemployer Pension Plan Funding Nears Peak Since 2008 Crash, Study Says

Multiemployer retirement plans’ funding in the first half of 2017 neared its best position since the market collapse of 2008, according to a new study by the actuarial consulting firm Milliman. But despite an average funded percentage of 81%, these plans still face significant pressures, with many on track to require assistance in the future […]

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Defined benefit retirement plan

New IRS Mortality Tables for 2018 Bring Host of Concerns for DB Plan Sponsors

The new mortality tables required for use by final regulations released on October 5 by the Internal Revenue Service (IRS) were expected, but bring into sharper focus a host of concerns for the single-employer defined benefit (DB) retirement plans that must eventually incorporate them.

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Defined benefit retirement plan

DB Plan Sponsors’ Interest in Pension Risk Transfer Accelerating

Interest in transferring pension risk off their balance sheets and on to insurance companies appear to be accelerating among U.S. defined benefit (DB) retirement plan sponsors, according to a recent poll conducted by insurer MetLife. The poll’s results lead MetLife to predict 2017 will be “another very robust year of [pension risk transfer] market activity.”

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IRS Delay in Implementing New Mortality Tables Affects Pension Liability Valuation

The Internal Revenue Service’s (IRS) delay until 2018 of implementation of updated mortality tables for pensions gives defined benefit (DB) plan sponsors some extra time to prepare for significant changes tied to increased participant longevity. But the delay also may affect pension liability valuation in up to three ways, according to investment consulting firm Cambridge […]

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Pension

LIMRA Data: Pension Buyouts at Highest Q1 Level in 15 Years

Single-premium pension buyout sales as part of the “derisking” of defined benefit (DB) retirement plans for the first quarter rose 31% from the same period in 2016, totaling $1.4 billion—the highest first-quarter results in 15 years, according to the LIMRA Secure Retirement Institute.

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Defined benefit retirement plan

Consider These Steps When Administering DB Plan Lump-Sum Windows

Lump-sum windows that offer defined benefit (DB) retirement plan participants a chance to convert their vested accrued monthly benefit into a one-time lump-sum cashout have gained popularity as a way for pensions to “derisk” their balance sheets and lower their headcount for U.S. Pension Benefit Guaranty Corporation (PBGC) premiums.

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retirement

Pension Buyout Sales Reached Nearly $6 Billion for Q3, Says LIMRA

Corporate pension buyout sales in the United States leaped to nearly $6 billion in the third quarter of 2016, rising to the highest level for the that quarter since 1990, according to the LIMRA Secure Retirement Institute. Sales of pension liabilities by employer plans were greater than $1 billion for each of the last six […]

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401(k) Plans’ Cost-effectiveness Becomes Clearer as Use Increases

Employers may find this new information useful for planning or justifying their retirement plan expenses: Contrary to the popular belief that defined benefit retirement plans are more costly for employers to administer, data from the U.S. Bureau of Labor Statistics indicates that private-industry employers now spend more per employee hour worked for defined contribution plans. […]

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