Dow to freeze U.S. pension plans, contribute $1 billion and hike DC match

Link: https://www.pionline.com/retirement-plans/dow-freeze-us-pension-plans-contribute-1-billion-and-hike-dc-match

Excerpt:

Dow Inc., Midland, Mich., will freeze the benefit accruals of its U.S. pension plans at the end of 2023, increase its matching contribution in its defined contribution plans and will contribute $1 billion to the pension plans before the end of the first quarter.

The chemical company announced its plans in an 8-K filing with the SEC on Thursday.

First, Dow will freeze benefit accruals for participants in qualified and non-qualified pension plans, including the Dow Employees’ Pension Plan, the Union Carbide Employees’ Pension Plan and the Dow Chemical Co. Executives’ Supplemental Retirement Plan-Supplemental Benefit, effective Dec. 31, 2023.

Author(s): Rob Kozlowski

Publication Date: 4 March 2021

Publication Site: Pensions & Investments

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 fromĀ 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

Lawmakers vote to revamp Kentucky Teachers pension plan

Link: https://www.pionline.com/pension-funds/lawmakers-vote-revamp-kentucky-teachers-pension-plan

Excerpt:

The Kentucky House of Representatives voted to approve a bill that would move participants in theĀ Kentucky Teachers’ Retirement System, Frankfort, to a hybrid plan.

The House voted 68-28 in favor of the bill, which creates a tier for teachers hired after Jan. 1, 2022.

Rep. C. Ed Massey sponsored the bill because the $21.6 billion pension fund “has a huge unfunded legacy,” he said in a telephone interview.

Author(s): ROB KOZLOWSKI

Publication Date: 8 February 2021

Publication Site: Pensions & Investments