Excerpt:
Going through the text of the stimulus bill, section 9706 provides Single Employer plans with another tool to reduce contributions.
Author(s): John Bury
Publication Date: 16 March 2021
Publication Site: Burypensions
Tag: single-employer pensions
American Rescue Plan Act of 2021 (5) 9705
Excerpt:
Going through the text of the stimulus bill, section 9705 turns to funding relief for Single Employer plans by returning to the 15 year amortization schedule for minimum funding purposes for 2022 (with optional election for 2019, 2020, and 2021) as if draconian PBGC premiums were not enough in themselves to discourage underfunding.
Author(s): John Bury
Publication Date: 16 March 2021
Publication Site: Burypensions
Milliman analysis: Corporate pension funded ratio climbs to 92.9% in February
Excerpt:
Milliman, Inc., a premier global consulting and actuarial firm, today released the latest results of its latest Pension Funding Index (PFI), which analyzes the 100 largest U.S. corporate pension plans.
In February, corporate pension funding improved by $67 billion thanks to a 26-basis-point increase in the monthly discount rate, from January’s 2.62% to 2.88% as of February 28. As a result, the funded status deficit dropped to $133 billion at month’s end. Meanwhile, the market value of assets dropped by $2 billion for the month, the result of a meager 0.13% investment gain. Overall the funded ratio for the Milliman PFI plans climbed from 89.7% at the end of January to 92.9% as of February 28, the fifth straight month of improved funding for these plans.
Author(s): Milliman
Publication Date: 8 March 2021
Publication Site: PRNewswire
Funded status of largest U.S. pension plans climbs in 2020
Link: https://www.pionline.com/pension-funds/funded-status-largest-us-pension-plans-climbs-2020
Excerpt:
The average funding ratio of 19 U.S. publicly listed corporations with more than $20 billion in global pension fund liabilities totaled 86.2% at the end of 2020, up from 84.9% at the start of the year, according to a report from Russell Investments.
Strong investment returns offset a decrease in the discount rate of more than 70 basis points that brought the total liabilities of the club to more than $1 trillion for the first time, said the report released Tuesday.
Assets for the “$20 billion club” totaled $901.9 billion as of Dec. 31, up 8.6% from the start of the year, and projected benefit obligations totaled $1.05 trillion, up 7.3% from the start of the year.
Author(s): Rob Kozlowski
Publication Date: 2 March 2021
Publication Site: Pensions & Investments
ConEd earmarks $480 million for pension plan contributions
Link: https://www.pionline.com/pension-funds/coned-earmarks-480-million-pension-plan-contributions
Excerpt:
Consolidated Edison Inc., New York, expects to make contributions of $480 million to its pension plans in 2021, according to the company’s 10-K statement filed Feb. 18 with the Securities and Exchange Commission.
Most of the contribution — $441 million — will go to the utility holding company’s subsidiary Consolidated Edison Co. of New York (CECONY) Inc.’s pension plan. The company has only U.S. pension plans.
Last year, the total contribution was $332 million, of which $301 million was provided to CECONY’s plan.
Author(s): ROBERT STEYER
Publication Date: 22 February 2021
Publication Site: Pensions & Investments
US Corporate Pension Funded Ratio Climbs to 89.8% in January
Link: https://www.ai-cio.com/news/us-corporate-pension-funded-ratio-climbs-89-8-january/
Excerpt:
The funded ratio of the 100 largest corporate defined benefit (DB) pension plans improved to 89.8% at the end of January from 88.1% at the end of December as their aggregate deficit fell below $200 billion for the first time in more than a year, according to consulting firm Milliman.
With the help of a 16 basis point (bp) increase in the monthly discount rate to 2.62% from 2.46%, the plans’ funding improved by $39 billion in January as their aggregate deficit declined to $196 billion from $235 billion due to liability gains incurred during the month.
Author(s): Michael Katz
Publication Date: 17 February 2021
Publication Site: ai-CIO
Delta Plans $500 Million Voluntary Staff Pension Contribution
Link: https://simpleflying.com/delta-staff-pension-contribution/
Excerpt:
Delta sponsors defined benefit pension plans for eligible employees and retirees. According to its recent SEC filing, the airline had no minimum funding requirements in 2019 or 2020. There are also no minimum funding requirements in 2021. Based on Delta’s current projections, the airline does not expect any minimum required contributions until 2025.
However, in 2019, Delta voluntarily tipped US$1 billion into pension plans. Last year, because of the cash crunch, Delta only put $49 million in. However, in 2021, Delta plans to upsize that figure and voluntarily put significantly more money into their employee’s pension plans.
“We plan to contribute at least $500 million to these plans in 2021,” says a note buried in Delta’s recent financial filings with the SEC.
Author(s): Andrew Curran
Publication Date: 17 February 2021
Publication Site: Simple Flying