News Archive

"11th Circ. hints at ERISA exhaustion rule repeal ... 2nd Circ. backs toss of NY tTeamsters' pension suit ... DOL drops 5th Circ. fiduciary rule appeals ... Wells Fargo escapes 401(k) forfeiture suit."  MORE >>

"Although the Court's analysis relied on statutes specifically applicable to municipal pension systems and the City's charter, the statutory frameworks governing other local systems -- including for counties and cities participating in CalPERS -- contain materially similar requirements supporting the broader applicability of the Court's reasoning." [City of San José v. Howard Jarvis Taxpayers Assoc., No. S285426 (Calif. Dec. 18, 2025)]  MORE >>

"The [PBGC] has updated the regulation governing allocation of assets in single-employer plans in 2026; it also has updated the mortality assumption for use with the missing participants program for determination dates in 2026.... The rule ... [substitutes] a new table for determining expected retirement ages for participants in pension plans undergoing distress or involuntary termination with valuation dates falling in 2026."  MORE >>

"Public pension funds are entrusted with safeguarding financial security for their members and beneficiaries. Yet even well-managed systems face risks when participant records are incomplete, deaths go unreported, or beneficiaries cannot be located.... Protecting the future requires pension funds to conduct timely audits that close data gaps, strengthen system integrity, and ensure accurate benefit delivery."  MORE >>

"This rule amends the [PBGC's] regulation on Allocation of Assets in Single-Employer Plans by substituting a new table for determining expected retirement ages for participants in pension plans undergoing distress or involuntary termination with valuation dates falling in 2026. This table is needed to compute the value of early retirement benefits and, thus, the total value of benefits under a plan. This rule also provides the mortality assumption for use with PBGC's missing participants program for determination dates in 2026."  MORE >>

The final installment of PBGC’s 2023 Pension Insurance Data Tables is now available. This installment includes various breakdowns of the number of PBGC-insured defined benefit plans, number of plan participants, hybrid plans, frozen plans, premium revenue, plan funding, and risk transfer activity. Some of the breakdowns are by industry, location, plan size, and plan funded status. This year’s Data Tables have been revised by consolidating/removing certain tables.  MORE >>

Topics: [1] 2025 Required Amendments List for Qualified and Section 403(b) Plans: Notice 2025-60 ... [2] Notice 2026-02: Update for weighted average interest rates, yield curves, and segment rates ... [3] Required Minimum Distributions ... [4] Qualified Charitable Distributions.  MORE >>

"During November, the estimated cost to transfer retiree pension risk to an insurer in a competitive bidding process remained level, at 100.1% of a plan's accounting liabilities (accumulated benefit obligation, or ABO). ... During the same time period, the average annuity purchase cost ... also remained the same as the prior month, at 103.3%. The competitive bidding process is estimated to save plan sponsors about 3.2% of PRT costs as of November 30, 2025."  MORE >>

"There is a popular myth in the financial media that reaching an 80% funded status is the ultimate benchmark for pension plan health. In reality, ... funded status alone rarely provides a complete picture of a pension system's well-being.... Public pension plans in this position may want to consider [specific] actions to help protect and build on this valuable ground gained.... [P]lans that are not quite there should also take a cue from these concepts[.]"  MORE >>

"Iowa Attorney General Brenna Bird submitted a brief ... in support of Lockheed Martin Corp. in a lawsuit over its choice of Athene Annuity and Life Co. in a pension risk transfer deal. The brief, joined by attorneys general in nine additional states, equates the lawsuit claims as an attack on the efficacy of the state-based insurance regulation system." [Konya v. Lockheed Martin Corp., No. 24-0750 (D. Md. Mar. 28, 2025; on appeal to 4th Cir. No. 25-2061)]  MORE >>

"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates ... and the 24-month average segment rates ... [as well as] the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate[.]"  MORE >>

"It's no secret that the combination of a sharp increase in interest rates and a historically strong equity market has lifted corporate DB plans to higher funded ratios and better hedged positions. To make the most of the opportunities this unique period has created ... there are several key lessons to keep in mind: [1] Rising funded ratios alone do not guarantee optimal hedge positioning. [2] Falling liability durations require proactive recalibration. [3] Avoiding over-hedging has become just as important as fixing under-hedging. [4] Sub-asset-class construction in fixed income -- not just allocation size -- now drives success."  MORE >>

"Although third quarter 2025 PRT sales fell 32% year over year, results were 137% higher than second quarter 2025 results. In the third quarter, total PRT new premium was $10.6 billion. YTD, total PRT sales were $21.6 billion, down 48% year over year.... More than 80% of the contracts sold this year were less than $50 million, signaling broader market interest in these pension liability mitigation solutions[.]"  MORE >>

"Earlier this year, the district court allowed the case to move forward saying the plaintiffs had established standing but immediately froze further proceedings after a nearly identical case was dismissed in a separate circuit. In August, Lockheed Martin filed an immediate appeal on the standing issue, which was supported by ERIC and other employer groups who filed an amicus brief urging the appeals court to review and reverse the district court's decision." [Konya v. Lockheed Martin Corp., No. 24-0750 (D. Md. Mar. 28, 2025; on appeal to 4th Cir. No. 25-2061)]  MORE >>

"The funded status of the country's 100 largest corporate defined benefit pension plans increased by $2 billion during November ... As of November 30, the funded ratio inched upward to 107.1%, from 107.0% at the end of October, and the funded status surplus improved to $88 billion."  MORE >>

"Pension finances suffered a modest setback in November, the first negative month since March. Both model plans ... lost ground last month: traditional Plan A lost almost 1%, ending the month up 6% for the year, while the more conservative Plan B lost a fraction of 1% last month but remains up more than 1% through the first eleven months of 2025."  MORE >>

"The aggregate funded ratio for U.S. corporate pension plans is estimated to have increased by 0.3 percentage points in November, ending the month at 103.7% ... The aggregate funded ratio is estimated to have increased by 5.9% and 0.5% year-to-date and over the trailing twelve months, respectively."  MORE >>

"What is an annuity buy-in? What happens after you purchase an annuity buy-in contract? What are the benefits of a buy-in offer compared to liability-driven investing? What are the risks of utilizing a buy-in contract in a plan termination? What else should plan sponsors consider before executing a buy-in?"  MORE >>

"The timing of actuarial assumptions used to calculate withdrawal liabilities for employers exiting an underfunded multiemployer plan has prompted clashing opinions among trade organizations and consumer groups seeking to influence the Supreme Court ... The actuarial altercation, filed through multiple amicus briefs ... has provoked comments from competing coalitions, each warning the 'wrong' Supreme Court decision could have a dramatic impact on multiemployer plan management." [M&K Employee Solutions, LLC v. Trustees of the IAM National Pension Fund, No. 22-7157 (D.C. Cir Feb. 9, 2024; cert. pet. granted Jun. 30, 2025 No. 23-1209)]  MORE >>

"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates ... and the 24-month average segment rates ... [as well as] the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate[.]"  MORE >>

"This paper investigates whether external capital market visibility influences corporate defined-benefit (DB) pension risk-shifting.... [F]irms added to the index tend to adopt more aggressive actuarial assumptions, lower contribution rates, and allocate a higher proportion of pension assets to equities. In contrast, firms removed from the index pursue more conservative strategies.... [The] results reveal that capital market visibility acts as an external force shaping actuarial and funding decisions in DB pension plans[.]"  MORE >>

15 pages. "The PRT market has seen robust growth, with $51.8 billion in premiums and over 750 transactions in 2024. The Society of Actuaries Research Institute convened a roundtable with stakeholders from insurers, reinsurers, consulting firms, and regulatory bodies to discuss the current landscape and future outlook."  MORE >>

"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates ... and the 24-month average segment rates ... [as well as] the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate[.]"  MORE >>

"After a few volatile years in rates, markets and inflation expectations, corporate pension plan sponsors are once again evaluating how funded status, investment strategy and risk management all fit together.... Review your funding position while rates remain high.... Evaluate lump sum or annuity opportunities early.... Align your investment strategy with your long-term goals."  MORE >>

"The estimated funded status of the 100 largest U.S. public pension plans increased from 85.4% as of September 30, 2025, to 86.3% as of October 31, 2025 ... This surpasses the highest funded ratio previously recorded [by Milliman] -- 85.5%, set on December 31, 2021 -- and marks the seventh straight month of funding improvement, the longest run of good news since the 2016 inception of the PPFI."  MORE >>