DB Industry Insights
Articles covering relevant trends we are seeing in the defined benefit plan industry and how they may impact your pension plan.
Brookings Institute Study on Public Pension Funding
A study presented by the Brookings Institute suggested that many state and local (Pay-as-you go) pension funds do not need to be fully funded in order to be able to meet required benefit payments. Without the added pressure of making contributions, governments may be better able to allocate money to residents, infrastructure, and education, according […]Read More
Pension Interest Rate Stabilization and Funding Relief
On March 11, 2021, the American Rescue Plan Act (ARPA) became law and contained provisions for pension funding relief for single and multi-employer plans. The legislation also provides funding to the PBGC to assist distressed multi-employer defined benefit plans that were expected to be insolvent in the next decade. Plans that suspended benefits will be […]Read More
Considerations for Pension Plan Sponsors
Asset returns and the recent increase in the liability discount rate have improved pension funded status, in many cases closer to full funding. Monitor Funded Status: Given the macro-outlook for a jolt in economic growth, assets and funded status should continue to be monitored, perhaps more frequently, if liability discount rates continue to rise. Protect […]Read More