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US Pensions - Q3 2018 Update

  • ,  Chief Executive |
  • 10 Sep 2018
  • Updated 01 Dec 2018

US DB and DC Pensions - Top Papers from Q3

As we previously reported, recent changes to US tax laws mean that corporate contributions to pension plans made prior to September 15th are tax deductible at a higher rate. This benefit is especially relevant for underfunded plans that are considering the timing of their 2018 contributions. With this in mind, we've gathered together (and listed below) the top defined benefit and defined contribution pensions papers on Savvy Investor from the past quarter.

For additional related content, check out our previous post, The 10 Top Papers for US Pension Plans - 2018 H1

US Pensions

3 Pension Risk Management Questions for Plan Sponsors (Capital Group, Aug 2018)
(For compliance reasons, this paper is only accessible in the United States)
In asking these questions, Capital Group details three issues relevant to plan sponsors - managing asymmetric pension plan outcomes, determining their interest rate hedging policy, and using their risk budget wisely. 

Defined Contribution Investments on Trial (PGIM, 2018)
(For compliance reasons, this paper is only accessible in the United States)
PGIM states that an institutional approach to investment design within defined contribution pension plans will more closely align with sponsors' fiduciary responsibilities and should also lead to improved outcomes for plan participants.

S&P 500 Corporate Pensions and OPEB in 2017 (S&P Dow Jones Indices)
Recent equity returns have driven improvements in the funded status of corporate pensions. This report details this effect and other issues impacting the US pension landscape.

The Economics of Providing 401(k) Plans: Services, Fees, and Expenses, 2017 (ICI)
This paper has been written by Investment Company Institute. It examines a variety of issues around the provision of 401(k) plans such as fees and expenses, trends in funds, services, and more.

2018 Global Survey of Accounting Assumptions for DB Plans (Willis Towers Watson)
Economic assumptions such as the discount rate, the rate of inflation, and the expected long-term rate of return on plan assets are critical facets of determining benefit costs. This report surveys global pension assumptions.

Constructing a Glide Path for Defined Benefit Plans (Rocaton, 2018)
Rocaton provides this guide on the construction of a glide path that is designed to help plan sponsors to accomplish their ultimate objective of meeting (and hopefully exceeding) the plan's liabilities.

The Evolution of Target Date Funds: Improving Retirement Plan Outcomes (2018)
This Georgetown/Willis Towers Watson paper advises including alternative asset classes in DC pension plans via including them within target date fund structures. 

The Retirement Revolution: Reforms Enable Behavioral Change (Brookings, 2018)
This brief from the Brookings Institution lays out several challenges present within the retirement savings system, shortcomings in insurance markets, and areas where financial regulation on retirement can be improved.