The passage of the Setting Every Community Up for Retirement Enhancement (SECURE) Act and, in some ways, the market crash caused by the COVID-19 pandemic have put a greater focus on providing guaranteed lifetime income for defined contribution (DC) plan participants.Read More
The passage of the Setting Every Community Up for Retirement Enhancement (SECURE) Act and, in some ways, the market crash caused by the COVID-19 pandemic have put a greater focus on providing guaranteed lifetime income for defined contribution (DC) plan participants.Read More
Reduced PBGC variable rate premiums may make now an optimum time to contribute. Plan sponsors undertaking risk-transfer activities in underfunded plans should consider contributing additional assets to maintain funded status equivalence. For some plans, low borrowing rates may present an opportunity.Read More
A pension plan is a non-core business with significant costs and risks. Over the last 19 years there have been nearly $800 billion in cash contributions in just the largest 100 U.S. pension plans. Yet, despite significant contributions and favorable equity market returns, funded status has not meaningfully recovered from the low of the financial...Read More
Pension risk transfer (PRT) helps companies deliver on their promises. It can take several forms, all with the goal of ensuring the financial security of a company’s employees, past or present, who are enrolled in the plan. We’ll look at buyouts and buy-ins, plan terminations, and lift-outs, and why a company’s CFO might take one...Read More
The share prices of companies that have transferred their pension obligations to an insurer typically perform better than their peers', according to analysis by Mercer. The firm found that in general, undertaking a pension risk transfer (PRT) does not appear to be hindrance, with “reasonable evidence” that it can have a positive impact on the...Read More
Defined benefit (DB) plan sponsors took an unexpected hit when the market crashed because of the COVID-19 pandemic, and many found past strategies they used in bear markets needed to be tweaked for the unprecedented volatility that followed.Read More
Many employers with defined benefit pension plans would love to put responsibility for the plans in the hands of a life insurer, by buying a large group annuity contract. Predictions about how the current COVID-19, stock price and interest rate turmoil will affect the market for pension risk transfer annuities are.... highly diverse.Read More
On April 29th 2020, BDO and BDO Alliance Firm DIETRICH, hosted a webinar to assist in better understanding the recently passed SECURE and CARES Acts.Read More
