Recent market volatility has convinced many defined-benefit plan sponsors that they need to reduce the risks inherent in their plans, and do it soon. Yet, some solutions they might consider, such as terminating the plan, cannot be completed immediately or could have adverse effects on their income statements.
Many CFOs and Treasurers have recently fully funded their defined benefit (DB) pension plan. Some took advantage of the larger tax deduction available for 2017 contributions. Others have benefited from rising interest rates and favorable investment returns. However you accomplished it, congratulations! But the real question is: What now?
It's important for plan sponsors to work with a pension risk-transfer company that has innovative solutions, financial stability, and great follow-up service.
Many defined benefit (DB) plans were closed to new entrants and/or frozen after the market crash in 2001 and the financial crisis in 2008. Due to many reports of the demise of DB plans, advisers might think all these plans would be terminated by now. However, many are still in existence and are—despite significant market returns during the past few years—still underfunded.
There is much debate in corporate boardrooms over the effect the current administration’s economic policies will have on corporate tax rates, possible repatriation of foreign profits and interest rates. Considering all the talk about the changing economic environment, PLANSPONSOR sat down with Russ Proctor and Marty Menin of the Retirement Solutions Division at Pacific Life to ask them whether these developments will help defined benefit (DB) pension plans.
People are living longer than at any other time in history. But what does that mean for defined benefit (DB) plan sponsors? Are there ways to help bolster the financial wellness of employees who might spend decades in retirement? PLANSPONSOR discussed these questions with Russ Proctor and Marty Menin, both Directors of Institutional Sales at Pacific Life Insurance Company.
Under GAAP accounting rules, plan sponsors of defined benefit (DB) pension plans must recognize the plan’s funding deficit on the company’s balance sheet. This wouldn't be so bad if it weren’t so difficult to match plan assets to plan liabilities.
Sponsors of nonqualified Defined Benefit (DB) Supplemental Executive Retirement Programs (SERPs) can help stabilize company balance sheets and solve the investment and longevity risk associated with these nonqualified plan liabilities using Pacific Secured Buy-In®.
From 2013 to 2016, Pension Benefit Guaranty Corporation (PBGC) variable rate premiums for defined benefit (DB) plan assets will more than triple.* This roundtable discusses how to reduce the impact of these premiums on DB plans.
In a Roundtable discussion Pacific Life looks at the economic cost of pension plans and specifically the impact of higher Pension Benefit Guaranty Corporation (PBGC) premiums on plans with small monthly benefit payments. Can a partial "lift-out" of participants with smaller benefit amounts reduce plan expenses and save the plan money in the long run?
PLANSPONSOR discusses with Pacific Life the appropriate economic cost analysis to use when comparing the total cost of maintaining a pension plan to transferring that liability to an insurance company.
Pacific Life discusses how the buy-in solution can help manage pension plan risk prior to a complete transfer of a company's pension liability through a buy-out.
In this PlanSponsor roundtable discussion, Pacific Life examines the challenges of matching plan liabilities using traditional liability driven investing (LDI) strategies. PlanSponsor probes into Pacific Life's innovative Insured LDI solution that addresses the risks associated with traditional LDI strategies.
Pacific Life and Ernst & Young, LLC (EY), are featured in a PlanSponsor roundtable discussion that examines the research paper "Charting the course: A framework to evaluate pension de-risking strategies." This paper offers an objective analysis of the options available to defined benefit (DB) plan sponsors.