Corporate DB Plan Funded Status Improves to Pre-Pandemic Levels
Equity allocations gave some plans a boost, and experts anticipate new legislation will offer relief from expected higher contributions.
Reported by
Corporate defined benefit (DB) plan funded status improved from 86% at the end of January to 88% at the end of February, according to Insight Investment.
“Through February, discount rates have risen approximately 45 bps [basis points], which has caused the liability to drop approximately 5%. Assets have remained level with the losses in fixed income due to rising rates offset by gains in the return-seeking asset portfolio,” says Kevin McLaughlin, Insight’s head of liability risk management.
Albeit typically a matter for Congress, tapped Secretary of Labor Marty Walsh is prepared to utilize his labor experience to address the growing concern regarding the uptick in.
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Seyfarth Synopsis: If the Senate
Parliamentarian blesses it, the $1.9 trillion American Rescue Plan
(a.k.a. the latest COVID-19 relief bill) may include multiemployer
pension relief that would provide underfunded multiemployer pension
plans with sufficient monies from the Treasury Department to pay
for all accrued benefits owed to retirees, without reduction,
through the plan year ending in 2051. Notably, any multiemployer
pensions plans eligible for this relief would not have to repay
those monies.
Embedded in the $1.9 trillion American Rescue Plan
is yet another attempt at multiemployer pension plan reform,
Seyfarth Synopsis: If the Senate Parliamentarian blesses it, the $1.9 trillion American Rescue Plan (a.k.a. the latest COVID-19 relief bill) may include multiemployer pension relief.
Pension Relief Plan in COVID-19 Stimulus Bill That Passes House ai-cio.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from ai-cio.com Daily Mail and Mail on Sunday newspapers.