20 pages. "The Retirement Section of the Society of Actuaries commissioned a research project on the topic of communicating pension risk, recognizing the challenges in addressing this complicated topic with stakeholders.... The literature search [is] limited to articles addressing risk for U.S. defined benefit plans, and [targets] plan sponsors and their agents as opposed to plan participants, insurers, or regulatory agencies such as the [PBGC]." [Also available: Literature Search Results (XLSX).]

"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 2021. This table is needed to compute the value of early retirement benefits and, thus, the total value of benefits under a plan.... This rule is effective January 1, 2021."

"June 30, 2019, is the measurement date for three-quarters of the plans in the 2020 study. The 12 months since that date were marked by extreme market volatility amid the onset of the COVID-19 pandemic.... [The authors] estimate that aggregate plan assets rose just slightly from $3.82 trillion as of the most recent fiscal year-ends to $3.84 trillion as of June 30, 2020."

"Based on NEPC's hypothetical open- and frozen-pension plans, the funded status of the total-return plan went up by 2.6%, while the LDI-focused plan saw an increase of 3.8% as long-duration fixed income outperformed on the back of falling credit yields."

"U.S. single premium buy-out sales totaled $4.6 billion in the third quarter, down 41% from third quarter 2019 but double the $2.3 billion sold in the second quarter ... Year-to-date buy-out sales totaled $11.3 billion, a drop of 32%, compared with the $16.7 billion sold in the first nine months of 2019."

"[In November,] annuity purchase prices declined 0.22% for Annuity Plan 1 and 1.33% for Annuity Plan 2. The fourth quarter is very busy for insurers. It is imperative to start the [pension risk transfer] process immediately to secure insurer availability for a purchase this year. Plan funded status has generally declined for pension plans in 2020 and PBGC premiums will increase next year."

"Stocks enjoyed their strongest month of the year in November, propelling pensions toward positive territory for the year. Both model plans ... gained ground last month, with Plan A adding close to 5% and Plan B close to 2% during the month. For the year, Plan A is down less than 1% and Plan B is even through the first eleven months of 2020."

An unofficial monthly report of the Moody's Daily Long-term Corporate Bond Yield Averages and Moody's Daily Treasury Yield Averages (used as benchmarks by some corporate pension plans).

48 pages. "Firms with low profitability, poor pension funding status, high pension asset beta, or high earnings/stock volatility are more likely to de-risk DB pension plans.... De-risking increases long-term shareholder value and reduces net pension beta (the difference between pension asset beta and pension liability beta)."

"[F]or calendar-year plans and some noncalendar-year plans starting late in the calendar year, the [effective interest rate (EIR)] almost certainly won’t be known by the Jan. 4 contribution due date. In that case, sponsors should estimate interest using the highest of the three segment rates for the plan year. This conservative approach will ensure that the contribution is at least as large as needed to satisfy minimum requirements. If the actual EIR is lower than the estimate, the sponsor can create prefunding balance with the excess contributions. However, what this means for PBGC premiums is unclear."

"Tips on avoiding withdrawal liability.... [1] Don't sign a collective bargaining agreement ... without reviewing the current plan financial information, the plan document and the plan participation or joinder agreement.... [2] [S]ome multiemployer pension plans purporting to be well funded for government reporting purposes use a lower interest rate for calculating withdrawal liability than they use for funding purposes, which will result in withdrawal liability when you might not otherwise expect it.... [3] [P]ersonal assets such as rental real estate in an unincorporated business could be exposed to withdrawal liability if that business is in 'common control' with the business that participates in the multiemployer pension plan."

"During October, the average estimated cost to transfer retiree pension risk to an insurer increased by 60 basis points, from 102.3% of a plan's total liabilities to 102.9% of those liabilities.... Annuity purchase costs reflecting competition amongst insurers are even lower, at 100.3%, up from 100.2% in September."

"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates used under Section 417(e)(3), and the 24-month average segment rates under Section 430(h)(2) ... In addition, this notice provides guidance as to the interest rate on 30-year Treasury securities under Section 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate under Section 431(c)(6)(E)(ii)(I)."

"This notice provides that the IRS will treat a contribution to a single-employer defined benefit pension plan with an extended due date of January 1, 2021 pursuant to Section 3608(a)(1) of the [CARES Act], as timely if it is made no later than January 4, 2021 (which is the first business day after January 1, 2021)."

"Global stock markets started the month strong, but took a turn for the worse in the last week of the month and ended the month down 2-3%. Pension discount rates were up about 0.10%-0.15% from the previous month, but are still down noticeably for the year. For most pension plans, the equity losses for the month will have outweighed the liability gains due to the increase in the discount rate, leading to an overall decline in funded status."

"Just 19% of plan sponsors interested in an annuity buyout with a specific timeframe in mind reported that the pandemic has decreased or delayed the likelihood of transacting ... A vast majority (81%) said there had either been no change in plans due to COVID-19 (27%), or that the pandemic has actually increased or accelerated the likelihood they would transact (55%)."

"The [PBGC] is taking responsibility for the J.C. Penney Corporation, Inc. Pension Plan, which covers about 36,000 current and future retirees.... The termination of the plan will be effective as of November 6, 2020. PBGC estimates that J.C. Penney's plan is 92 percent funded with approximately $3.3 billion in assets and about $3.6 billion in benefit liabilities. The plan is underfunded by $270 million."

"The deficit declined to $285 billion primarily due to liability gains resulting from an increase in the benchmark corporate bond interest rates used to value those pension liabilities. This is the lowest PFI pension deficit since March, when it was $243 billion. As of October 31, the funded ratio improved to 85.1%, from 84.4% at the end of September."

"Stocks slipped again in October, producing modest declines for pensions. Both model plans ... lost less than 1% during the month. For the year, Plan A is down more than 5% and Plan B is down almost 2% through the first ten months of 2020."

"There are a number of ways CFOs can go about transferring the potential risk from their existing plans. [This article discusses] buyouts and buy-ins, plan terminations and lift-outs, and the respective characteristics of each."

An unofficial monthly report of the Moody's Daily Long-term Corporate Bond Yield Averages and Moody's Daily Treasury Yield Averages (used as benchmarks by some corporate pension plans).

"Use of the MP-2020 scale with the Pri-2012 base tables will likely lower balance sheet liabilities between 0.3% and 1.0% depending on the age and gender mix of the population and assuming a discount rate of 4%.... MP-2020 incorporates actual mortality data through 2018. General population mortality data for 2020 that includes the effects of the pandemic will not be available until 2022.... The SOA also revised the assumed long-term rate of improvement after a study of historical mortality improvement over various periods and age groupings.... Plan sponsors should consider using the updated mortality improvement rates immediately for plan accounting."

"Just days after the Memorandum was published, the U.S. Court of Appeals for the Sixth Circuit ordered the PBGC to respond to the Delphi retirees' petition for a rehearing, which may increase the likelihood of a rehearing in Black v. PBGC, No. 19-1419 (6th Cir. Sept. 1, 2020)."

"It's imperative that a new COVID-19 relief package -- whenever it's passed -- shore up multiemployer pensions ... [If] this piece of the retirement system is allowed to collapse, it would not only hurt current and future pensioners, it would deal an outsized blow to the employers who contribute to their plans, and to the economy.... Many of these plans are hurtling toward insolvency, while others are deteriorating from the economic fallout of the pandemic. The stakes are so high in some states that the issue could swing the election."

15 pages. "The market downturn of the last several months has exacerbated the funding shortfalls facing many public pensions funds across the country ... In the short- and medium-term, pension funds will have increased difficulties meeting their required contributions and other financial obligations, and many may also face a liquidity crisis.... [P]ublic pension fund managers are now in a position to implement long-needed reforms to their investment, management, and public policy strategies."