Actuarial Outpost
 
Go Back   Actuarial Outpost > Actuarial Discussion Forum > Pension - Social Security
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions

Search Actuarial Jobs by State @ DWSimpson.com:
AL AK AR AZ CA CO CT DE FL GA HI ID IL IN IA KS KY LA
ME MD MA MI MN MS MO MT NE NH NJ NM NY NV NC ND
OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY

Reply
 
Thread Tools Search this Thread Display Modes
  #201  
Old 09-08-2015, 08:02 AM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 85,067
Blog Entries: 6
Default

CASH BUYOUT OFFERS

http://www.wsj.com/articles/tax-poli...uts-1441667269

Quote:
More companies are preparing to offer lump-sum pension buyouts to their former employees, taking advantage of tax policies that make it possible to reduce their pension obligations and lower their costs.

In coming months, employers including Newell Rubbermaid Inc. and E.W. Scripps Co. will try to persuade former employees to take their retirement money early, and in the form of a lump sum, rather than as a series of pension payments after retirement. In making the offers, they hope to get part of their pension liabilities off their books, and to cut the costs of maintaining their pension plans.

Thanks to years of low interest rates, pension liabilities of S&P 500 companies are ballooning. S&P says the gap between the amounts the companies will owe retirees and their pension assets was about $389.1 billion at the end of last year, up from $224.5 billion in 2013.

.....
As a result, more companies are eager to take advantage of a decision by the Internal Revenue Service to continue using its current life-expectancy calculations, which will make it cheaper for them to offer pension buyouts before 2017, when the IRS is likely to adopt new, longer lifespan estimates.

Newell Rubbermaid said in August that it plans to offer 3,300 former employees a lump-sum pension buyout to “reduce the size” of its pension obligation and related expenses—its second lump-sum offer in two years. The offer is equivalent to about $120 million of its total $1.73 billion pension liability.

Last September, Newell Rubbermaid, which is based in Oak Brook, Ill., offered 5,700 former employees the chance to cash out their pensions. Typically, about 50% of former workers accept such offers, it says.

A spokesman for the company declined to elaborate.
.....
The IRS helped to fuel the trend toward lump-sum offers when it said in July that it would put off using new mortality-rate calculations based on longer lifespans until 2017. That suddenly made it cheaper for companies to offer pension buyouts now than in the future. The new assumptions that people will live longer will make lump-sum offers more expensive to companies.

“We’re warning clients that if you want to shed this liability, do it now or by the end of 2016, because it is just going to be a different ballgame in 2017,” said Amy Gentile, senior actuarial consultant at Findley Davies, who advises corporations on pension benefits.

For former employees, a lump-sum buyout is often a bad option. In many cases, if they took the payout and bought an annuity from an insurer, or invested the money, they would earn less than the monthly pension income they sacrificed.
.....
Still, many people offered a lump sum will choose to take it, benefits consultants say, and pension-plan participants may find this is a better year to take the buyouts—if they want them.
.....
The IRS said in July that it would no longer allow companies to make lump-sum offers to people who had already retired. “There’s not going to be another lump-sum offer…people know that,” said Frank Minter, pension director for the Lucent Retiree Organization.


__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #202  
Old 09-08-2015, 12:38 PM
Wag, the Dog Wag, the Dog is offline
Member
SOA
 
Join Date: Jan 2002
Location: Rust belt
College: Purdue
Posts: 965
Default

Quote:
Originally Posted by campbell View Post
"Pssst, kid, how'd you like a nice bowl of pottage?"
__________________
IANA ...
Reply With Quote
  #203  
Old 09-15-2015, 06:45 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 85,067
Blog Entries: 6
Default

SCRIPPS BUYOUT OFFER

http://www.prnewswire.com/news-relea...300132355.html

Quote:
CINCINNATI, Aug. 24, 2015 /PRNewswire/ -- The E.W. Scripps Company (NYSE: SSP) is offering its eligible former employees with vested, deferred pension plan benefits the option of receiving their benefits either as a lump-sum distribution or an immediate annuity payment.

Approximately 4,300 former Scripps employees are eligible for this offer; former Journal Communications employees are not impacted.

On Aug. 21, 2015, notices were mailed to eligible participants, who have until Oct. 13, 2015, to make an election. The lump-sum payments are expected to be made in November 2015.

Company funds will not be used to make the lump-sum distributions. All distributions will be made from existing pension-plan assets. The company expects the plan's funded status to remain materially unchanged as a result of this offer. At year-end 2014, the plan's funded ratio was 80 percent.

__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #204  
Old 09-22-2015, 03:46 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 85,067
Blog Entries: 6
Default

ASSET-LIABILITY VALUATION
SPONSOR FINANCIAL STRENGTH

http://www.ai-cio.com/channel/ASSET-...tion-is-Wrong/

Quote:
Pension plans failing to consider the strength of their corporate sponsor may be drawing up a flawed investment strategy as a result, according to research from the Cass Business School and University of Melbourne.

In the paper—“Managing Financially Distressed Pension Plans In The Interest Of Beneficiaries”—David Blake, director of pensions at the Cass Business School, and Joachim Inkmann and Zhen Shi of the University of Melbourne proposed a new asset-liability model taking this into account as well as factoring in the pension’s strategic asset allocation.

Currently, valuing a pension’s liability is treated as a separate task from investing the assets, the authors said. Their model merged the two tasks as well as treating pension funds as “an integral part of the company”.

Blake said the model “has important advantages for all stakeholders of the corporate pension plan”. Adding: “Staff taking out pensions will have a clearer picture of the true value of their pension promise.”

“The ability of the pension plan and its sponsoring company to fund the future pension payments promised to the beneficiaries depends on the future values of pension plan assets which themselves depend on the current strategic asset allocation policy of the pension plan,” the authors wrote. “We cannot value the pension obligation without knowing the strategic asset allocation policy of the pension plan.”

Using 2002 data from General Motors’ pension plan as a case study, the authors demonstrated that the strategic asset allocation used at the time was far too risky as it did not take into account the funding shortfall and the size of the company.

At the end of 2002, GM’s pension held assets worth $60.9 billion, or 76% of its obligation to members. The market cap of the car maker was $6.8 billion at the time—less than half the value of the pension shortfall of $19.8 billion.

More than half (55%) of GM’s pension was invested in stocks at the end of that year, the paper shows, meaning the fund was exposed to a volatile—and falling—equity market. Including real estate, the pension had 65% in risky assets.

However, when taking into account the sponsor’s position, as well as the nature and time frame of the liabilities, Blake, Inkmann, and Shi said GM’s optimal bond allocation was 70%, shifting from an aggressive investment strategy to liability hedging.

__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #205  
Old 10-04-2015, 03:05 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 85,067
Blog Entries: 6
Default

JC PENNEY
LUMP SUM SETTLEMENT


http://www.journalgazette.net/busine...nsions-9134808
Quote:
J.C. Penney Co. reached a deal with about 12,000 retirees and beneficiaries to accept a lump-sum payment and settle pension obligations, helping to reduce the amount that the department-store chain will have to pay by as much as 35 percent.

The company won’t need to make any cash contribution, and Prudential Financial Inc. will settle a “substantial” amount of pension benefit obligations, J.C. Penney said in a statement Friday. It has $5 billion in U.S. pension obligations.

The 113-year-old retailer is part of a growing list of companies rethinking their pension plans. Kraft Heinz Co., the food giant created out of a merger this year, said last month that it was trying to shift some retirees away from pension plans under a voluntary program. Former Kraft employees who have a future estimated benefit value of less than $2,500 a month at age 65, and who have not started receiving the money, can receive an immediate lump-sum payment, the company said.
__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #206  
Old 10-04-2015, 03:05 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 85,067
Blog Entries: 6
Default

FUNDED RATIOS

http://www.businessinsurance.com/art...WS03/151009946

Quote:
Fueled by lower interest rates, which boosted the value of liabilities, and losses in the equity markets, the funded status of pension plans sponsored by large employers fell in September, according to a Mercer L.L.C. analysis released Friday.

On average, pension plans sponsored by companies in the S&P 1500 were 79% funded as of Sept. 30, down from 81% funded as of Aug. 31, and 83% as of July 31.

“As the third quarter ends with a volatile September, funding levels have returned to Dec. 31, 2014 levels, erasing gains from the first half of this year,” Jim Ritchie, a Mercer principal in Baltimore said in a statement.

In the aggregate, the Mercer analysis found that the plans’ funding deficit rose by $43 billion in September to $457 billion.

__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #207  
Old 10-07-2015, 06:03 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 85,067
Blog Entries: 6
Default

NFL

https://sports.vice.com/en_us/articl...-proud-men-beg

Quote:
When it comes to struggling with inadequate benefits and a poverty-level pension, DeLamielleure isn't alone among NFL retirees. According to data provided by the league, 3,641 former players receive an average monthly pension payment of $1,656. About 90 percent of those retirees also receive money from the Legacy Benefit fund, with an average monthly payment of $723.85. Add those amounts together, and that's roughly $28,550 a year, a not insignificant amount that's still far less generous than Major League Baseball's pension plan.

After only 43 days in the bigs, MLB players are eligible for $34,000-a-year pensions. Players are awarded $100,000 a year after a decade in the Majors. Pre-93 NFL players would require 11 seasons—the average NFL career only lasts 3.3 years—to earn even the MLB's 43-day pension level. And to earn $100,000 a year, those same pre-93ers would have had to play in the NFL for more than 30 years.

To put things another way: in 2011, NFL commissioner Roger Goodell received a $4.1 million boost to his pension. DeLamielleure would have to collect his NFL pension for 144 years to earn that much. Even he isn't that lucky.

.....
And yet: retiree benefits haven't kept pace. At least not for DeLamielleure and company, who were born at the wrong time. In 1993, the NFL's Collective Bargaining Agreement drastically altered the league's financial landscape, adding free agency in exchange for a player salary cap. Benefits and pensions were boosted significantly for future retirees, but not for existing ones. A former player who played in the 1998 season was now eligible for $470 a month in pension payments; but a player credited for the 1992 season was still receiving just $225.

Spoiler:

__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #208  
Old 10-07-2015, 06:13 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 85,067
Blog Entries: 6
Default

VOLKWAGEN
GOLDEN PARACHUTE
http://www.wired.com/2015/09/ousted-...llion-pension/

Quote:
MARTIN WINTERKORN, THE CEO of Volkswagen who resigned today amid allegations that the company cheated emissions testing for 11 million diesel-powered cars, stands to take home a $32 million pension.

Bloomberg Business reported the figure, along with the fact that the ousted CEO may also be eligible for two years’ worth of remuneration, if VW determines he was terminated for no fault of his own. Winterkorn made $18.6 million in 2014.

__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #209  
Old 10-09-2015, 05:13 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 85,067
Blog Entries: 6
Default

SSI
STEEL COMPANY
UNITED KINGDOM

http://www.bbc.com/news/uk-england-tees-34482160

Quote:
Redcar steel: SSI missed pension payments claim

The steel company SSI has missed some payments into its employees' pension scheme, it has emerged.
The company went into liquidation last week, blaming the slump in steel prices for having to mothball its Teesside plant with the loss of 1,700 jobs.
SSI declined to comment but the government's Insolvency Service said the exact number of missed pension payments was still being assessed.
Steelworker Ken McGlasson said he had been left feeling "duped".
Since June money has been deducted from his salary but not transferred to his pension scheme, he claimed.
SSI's contributions have not been paid either, with the whole amount totalling more than 2,000, he said.
__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #210  
Old 10-10-2015, 11:08 AM
Abnormal Abnormal is offline
Member
 
Join Date: Mar 2002
Posts: 6,725
Default

And we have this:

Quote:
Judge approves U.S. Steel transition plan, suspends retiree benefits
Judge's ruling cuts benefits to 20,000 retirees, allows it to avoid property taxes

Quote:
update

Judge approves plan to sever U.S. Steel Canada and suspend pension benefit payments.
A bankruptcy court judge has approved a transition plan that will sever U.S. Steel Canada from its U.S. parent and has allowed the company to suspend health-care benefits for tens of thousands of retirees.

In a brief decision on Friday, Justice Herman Wilton-Siegal endorsed a plan for U.S. Steel Canada to form its own company to manage its Canadian assets. He also endorsed its request to suspend health-care benefits to 20,000 pensioners, and to allow a reprieve on paying property taxes.

The details will be known on Tuesday. But Gary Howe, president of United Steelworkers (USW) Local 1005, said his union is disappointed. It will meet with drug benefit providers and look at other options to cover the gap for pensioners, particularly those under 65 not covered the province's Trillium drug plan.

In the meantime, he said, "the real story is that 20,600 people will be without benefits that they've earned."

But the decision has greater implications for U.S. Steel Canada (USSC), which runs plants in Hamilton and Nanticoke. The company has been in bankruptcy protection under the Companies Creditors Arrangement Act (CCAA) since last September.

What happens to a stand-alone U.S. Steel Canada, and whether it can continue to operate, is still very uncertain.

Other options included putting the company in "hot standby" mode in the hope that conditions change, or declaring it bankrupt, said Marvin Ryder, a McMaster University professor.

Spoiler:
Both Ryder and steel industry analyst Chuck Bradford told CBC Hamilton on Friday that selling the Hamilton operation in its current state is unlikely. It's more likely that it will be sold in pieces. The Nanticoke, with its pricey rolling mill, is a better candidate for sale, Ryder said. It may even be sold to U.S. Steel once it's separated from the Canadian company, or the corporation will get it as part of a "debt swap." All of these details are unknown.

But "in terms of buying and operating (in Hamilton), I don't mean to be the bearer of bad news, but it's not likely," Ryder said.

Howe said the steelmaker is locked into paying pension contributions at least until the end of the year. But he's not sure what will happen after that.

There's also no time period specified yet for how long the company will go without paying health-care benefits or property taxes. U.S. Steel Canada pays about $6 million in property taxes per year in Hamilton. The company employs about 2,200 people.

Mayor Fred Eisenberger of Hamilton said once the city hears more details, it will decide whether to appeal the decision. City taxes for the rest of the year amount to about $1.5 million.
http://www.cbc.ca/news/canada/hamilt...fits-1.3264966
__________________
Anyone who cannot cope with mathematics is not fully human. At best he is a tolerable subhuman who has learned to wear shoes, bathe, and not make messes in the house.
Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -4. The time now is 05:58 AM.


Powered by vBulletin®
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.33046 seconds with 10 queries