DB Industry Insights
Articles covering relevant trends we are seeing in the defined benefit plan industry and how they may impact your pension plan.
Regulatory Considerations Regarding the CARES Act
The CARES (Coronavirus Aid, Relief, and Economic Security) Act that was signed into law on March 27, 2020 included aid and relief to not only to businesses and individuals, but to retirement plans. Most of the focus has been given to provisions for defined contribution plans in the CARES Act, but the legislation also included […]Read More
Considerations for Pension Plans in the Current Environment
Defined benefit plan sponsors will review investment strategy once financial markets stabilize. At the top of the list will be asset de-risking. In 2019, most plans moved beyond waiting for interest rates to rise before hedging liabilities and lowering costs such as PBGC premiums. Included in this review, investment committees should consider the following: As […]Read More
Asset Returns Weigh on Pension Funded Status
Wider credit spreads pushed the corporate bond discount rate used to value liabilities to 3.39% at the end of the quarter, from the recent low of 2.69% at the end of the previous month. At that time, the discount rate was the lowest on record over the last 20 years. However, the discount rate was […]Read More