US - The funding status of defined benefit (DB) corporate pension funds will change dramatically unless the stock market picks up, according to Wilshire Associates.
The Santa Monica-based consultant believes that corporate DB pension assets will fall to $1,074bn, unless the stock market rebounds dramatically. At the end of 2000, DB pension assets held by S&P 500 firms totalled $1,235bn, or 25% more than the $991bn in combined reported liabilities.
If Wilshire's predictions are accurate, the the ratio of pension assets to liabilities for S&P 500 companies will drop from an actual level of 1.25 at the end of fiscal 2000, to a projected level of 0.95 at the end of fiscal 2001.
Additionally, Wilshire expects corporate DB plans to significantly overstate their actual earnings for both fiscal 2001 and 2002 - assumed returns will exceed actual returns, and because the assumed returns are applied to a smoothed asset value that will exceed the market value of pension assets.
By Geoffrey Ho
Some of the UK's biggest pension schemes will be forced to report on climate risk in line with recommendations from the Taskforce for Climate-related Financial Disclosures (TCFD).
TPT Retirement Solutions has launched a pension scheme for the education sector which offers schools both defined contribution (DC) and defined benefit (DB) pension provision.
The People's Pension has revealed plans to overhaul its charging structure, cutting fees and returning profits to members with an aim to help people save more money for retirement.
Data consultancy ITM has appointed Akash Rooprai as head of client management to lead its de-risking business.