PENSION RISK RESOURCE CENTER
DECISION TIME FOR PLAN SPONSORS
The number of fully funded DB plans in the S&P1500 increased to 20% in Sept. The prospect of widespread fully funded DB plans may be on the horizon if interest rates rise by 100 basis points. If this happens many plan sponsors will be faced with a number of big decisions.
US PENSION RISK SURVEY 2013 - RESULTS
The results of the 2013 Mercer/CFO Research Services US Pension Risk Survey of senior finance executives will be shared for the first time on a special webcast on June 25th.
ANNOUNCING THE MERCER US PENSION BUYOUT INDEX
The Mercer US Pension Buyout Index helps plan sponsors to quickly assess the approximate cost of plan termination or the purchase of annuities for retirees.
MERCER'S PENSION CASH OUT SOLUTIONS
Mercer has the expertise and in-depth resources to help you evaluate the feasibility and merits of a cash-out offering, and then execute it successfully.
PREPARING FOR A PENSION RISK TRANSFER - WEBCAST
MERCER IDENTIFIES TOP PENSION RISK MANAGEMENT PRIORITIES FOR 2013
Many pension plan sponsors will enter 2013 facing significant increases in their pension funding deficits, which will lead to potential balance sheet adjustments and higher P&L expense. In this environment, Mercer has identified five top pension risk management priorities for 2013.
MERCER & ICAEW - UK PENSION RISK SURVEY RESULTS
VERIZON'S $7.5B PENSION ANNUITY TRANSACTION
On October 17, 2012, Verizon Communications Inc. announced that it would transfer approximately $7.5 billion in pension liabilities to Prudential by purchasing a group annuity contract. This is the second-largest annuity purchase ever transacted in the US.
FTSE 350 PENSIONS DEFICIT INCREASES TO £55Bn
Funded status of the FTSE 350 pension plans fell during October with a £13Bn increase in the pension deficit. This corresponds to a funding ratio of assets over liabilities of 90%.
MERER'S 2012 RETIREMENT BENCHMARKING REPORT (US)
Mercer's "How Does Your Retirement Plan Stack Up?" report benchmarks the retirement programs of the S&P 1500. This year's report takes an in-depth look at fiscal year-end 2011 financial disclosures, analyzing trends in the market and challenges faced by plan sponsors. The report reveals the major findings from fiscal-year 2011 that will help plan sponsors understand what the current market conditions mean for pension plans, and will help them prepare for the 2012 year-end process.
FUNDING STABILIZATION - FINANCIAL IMPLICATIONS AND TRADE-OFFS
Mercer's Analysis of GM's $26 Billion Pension Buyout
On Friday, June 1, General Motors announced they would be terminating $26 billion of pension liabilities through an annuity purchase and a lump sum offer for existing retirees. This is a landmark transaction, by far the largest ever seen in the US. This follows on the heels of Ford’s announcement at the end of April that they would offer certain retirees the opportunity to take a one-time lump sum payment.
Mercer held a webcast on June 12 to discuss this landmark settlement and key learnings for companies with significant pension plan liabilities.
MERCER'S UK FORUM ON DB RISK
THE INTEGRATED PENSION GOVERNANCE AND RISK MANAGEMENT FRAMEWORK
Management of defined benefit (DB) pensions is a complicated challenge for multinationals today, given that pension funds are usually located in countries outside the sponsor’s headquarters. It is essential to proactively tackle this problem and the impact it has on the multinational’s financial standing.
LUMP SUM AND RISK TRANSFER
Why defined benefit plan sponsors should consider risk transfer as early as 2012
To date, the “how” has been achieved primarily through managing investment risk and through benefit design. That said, the only way to completely remove pension risk is by settling the liabilities through lump-sum cashouts and/or annuity purchases. As we will discuss in this paper, adding a lump-sum option can be an attractive alternative (from both a cost and risk perspective) to maintaining liabilities or purchasing annuities for terminated participants who have not yet retired (referred to as TVs). For both cash and accounting reasons, risk transfer has been put on hold by many sponsors until funded statuses recover more substantially. Furthermore, US pension plans need to be at least 80% funded on a Pension Protection Act basis in order to offer full lump sums to participants.
BETTING ON A RATES RISE
Imagine the situation; you are the Chair of an investment committee of a defined benefit pension plan that is grappling with how to recover the substantial deficit that has opened in recent years. The issue is receiving great scrutiny from the corporate finance team since losses are marked to market on the balance sheet and the company is required to fund the deficit over a relatively short timeframe. One of the more dynamic members of the committee suggests an investment proposal that he assures the group is the answer to their problems.
PENSION RISK MANAGEMENT: BEING NIMBLE IN A VOLATILE WORLD Q1/12
Heather Cooke, Jonathan Barry and Richard McEvoy discuss volatility and pension plans in the global market place.
MERCER & CFO MAGAZINE - PENSION RISK SURVEY RESULTS
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