DB Industry Insights
Articles covering relevant trends we are seeing in the defined benefit plan industry and how they may impact your pension plan.
Trends in Corporate Pension Allocations
Corporate defined benefit pension plans continue the trend of asset de-risking while also increasing the use of other investments (real estate, private equity, hedge funds, and commodities) to generate return. Figure 1: Asset Allocation for Corporate Defined Benefit Plans* Other strategies include utilizing Treasury futures to retain equity allocation (and return), while introducing some leverage […]Read More
Comments on 2019 Pension Statistics and Strategies from Funding Survey
As Milliman notes upfront in their annual pension funding study, given all that has happened in the last few months, a look back to 2019 can be irrelevant. The economic events surrounding the Covid-19 pandemic and the subsequent fiscal policy actions has far-reaching implications on how corporations will make decisions for their pension plans in […]Read More
Another Bad Quarter for Pension Funding
Over the second quarter, increases in pension liability valuations were only partially offset by gains in assets, resulting in a lower funded status across the 100 largest corporate defined benefit pension plans that make up the Milliman 100 Pension Funding Index Survey*. The June 30, 2020 Index was 83.7% compared to a revised 86.2% at […]Read More