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

Multiemployer pension measures cleared for relief bill vote

Link: https://www.pionline.com/legislation/multiemployer-pension-measures-cleared-relief-bill-vote

Excerpt:

Legislation to help struggling multiemployer pension funds is to remain in the COVID-19 relief measure headed for a Senate vote this week.

The package also calls for some funding relief for single-employer plans, through extended amortization periods and pension interest rate smoothing changes.

The pandemic relief package was approved by the House along party lines Feb. 27. Its pension provisions were at risk of being stripped until the Senate parliamentarian ruled late Monday that they fit the rules for a budget reconciliation process that allows Democrats to prevail under a simple majority.

Author(s): Hazel Bradford

Publication Date: 2 March 2021

Publication Site: Pensions & Investments

Senate Republicans oppose Nasdaq diversity rule

Link: https://www.pionline.com/governance/senate-republicans-oppose-nasdaq-diversity-rule

Excerpt:

Sen. Pat Toomey, R-Pa., was among a group of Republicans calling on the SEC to reject Nasdaq’s board diversity proposal.

Republican members of the Senate Banking Committee told the Securities and Exchange Commission to reject a Nasdaq proposal allowing it to require listed companies to publicly disclose the gender and racial diversity of their boards and eventually to have at least two diverse directors, citing a connection between diverse boards and corporate performance.

Author(s): HAZEL BRADFORD

Publication Date: 12 February 2021

Publication Site: Pensions & Investments

Biden’s retirement idea getting the cold shoulder

Link: https://www.pionline.com/defined-contribution/bidens-retirement-idea-getting-cold-shoulder

Excerpt:

Equalized tax advantage proposal being met with skepticism by industry

Alicia Munnell doesn’t think the shift would help because workers typically don’t look at tax incentives.

Trade groups representing plan sponsors have snubbed a proposal floated by President Joe Biden to give individuals across all pay grades equal tax advantages for their retirement savings.

Author(s): MARGARIDA CORREIA

Publication Date: 22 February 2021

Publication Site: Pensions & Investments

States push ahead on private-sector initiatives

Link: https://www.pionline.com/retirement-plans/states-push-ahead-private-sector-initiatives

Excerpt:

To date, 12 states and Seattle have enacted retirement savings programs for private-sector workers. They include OregonSaves with more than 90,000 funded accounts and $92 million in assets, the Illinois Secure Choice retirement savings program with $52.6 million and 82,852 funded accounts, and the $38 million CalSavers Retirement Savings Program that as of February had enrolled 274,024 participants, with another enrollment phase coming up.

The predominant model is an auto IRA, in which employer participation is required if no plan is already offered. Other options are a voluntary payroll deduction Roth IRA, a multiple employer plan, and a service provider marketplace, or a hybrid.

Author(s): Hazel Bradford

Publication Date: 22 February 2021

Publication Site: Pensions & Investments

CalPERS seen weighing proposal on rule changes for hiring, firing of CIO

Link: https://www.pionline.com/pension-funds/calpers-seen-weighing-proposal-rule-changes-hiring-firing-cio

Excerpt:

The CalPERS board is looking at a change in the way it will decide who replaces Yu ‘Ben’ Meng as CIO of the fund.

CalPERS board is expected to weigh a move that would modify a recent governance change calling for the full board in conjunction with the CEO to hire, evaluate and terminate the pension fund’s CIO.

Author(s): ARLEEN JACOBIUS

Publication Date: 23 February 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

Graphic: A look at hiring activity in 2020

Link: https://www.pionline.com/interactive/graphic-look-hiring-activity-2020

Graphic:

Excerpt:

Overall hiring activity tracked by Pensions & Investments fell 16.3% to $214.5 billion in 2020. The total number of hires increased to 2,424 in 2020 from 2,220 in 2019. Hires for traditional and alternative asset classes fell 10.4% and 18%, respectively. Activity dipped slightly in the first quarter, but was relatively unaffected by the COVID-19 pandemic. As with prior years, commitments to alternative investment vehicles made up the bulk of the mandates, reaching an all-time high of 1,659, up from 1,493 in 2019. Infrastructure had 146 hires, more than double the level five years ago.

….

Real growth: Assets committed to infrastructure have steadily grown over the past 10 years, doubling the amount from five years ago. The number of hires also jumped, from 13 hires in 2010 to 44 hires in 2015 and 133 in 2020.

Author(s): AARON M. CUNNINGHAM

Publication Date: 25 January 2021

Publication Site: Pensions & Investments

California pension funds learning from experience; Flexibility is key lesson from plans’ pandemic struggles

Link: https://www.pionline.com/pension-funds/california-pension-funds-learning-experience

Excerpt:

Marcie Frost said CalPERS got an early warning about the coronavirus from its outgoing CIO.


CalPERS and CalSTRS have been working to keep their plans upright and positioned to attain their expected rate of returns in unprecedented economic, social and political conditions.

Author(s): Arleen Jacobius

Publication Date: 25 January 2021

Publication Site: Pensions & Investments

Resisting diversity could lead to termination

Link: https://www.pionline.com/esg/resisting-diversity-could-lead-termination

Excerpt:

Shannon M. O’Leary cited lack of diversity as a big part of the reason her foundation cut ties with three managers in the past year or so.
Foundations argue that scrutiny of investment consultants and money managers lagging on the diversity front will only move the needle so far. For firms failing to meet diversity goals set by foundations, the best recourse is to fire them and reallocate capital elsewhere, sources say.

Author(s): Danielle Walker

Publication Date: 25 January 2021

Publication Site: Pensions & Investments

Tontines garnering a new wave of interest

Link: https://www.pionline.com/retirement-plans/tontines-garnering-new-wave-interest

Excerpt:

Strategies could help answer growing concerns about how to solve rising longevity risks

Dean McClelland said the OECD’s mention of tontines is a sign of growing acceptance.


Live longer could become the new retirement advice in coming years amid growing interest in tontines — investment pools where participants share longevity risks by distributing the assets of those who die as “mortality credits” to surviving participants.

Author(s): DOUGLAS APPELL

Publication Date: 25 January 2021

Publication Site: Pensions & Investments