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  #161  
Old 06-16-2015, 06:29 PM
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FED EX
MARK-TO-MARKET ACCOUNTING

https://www.morningstar.com/news/dow...nd-update.html

Quote:
FedEx Corp. said Friday that it will book a $2.2 billion pretax charge in its most recently ended quarter as a result of its decision to switch to a pension accounting method that it said makes it easier to gauge plan performance.

FedEx joins dozens of companies, such as AT&T Inc., that have adopted mark-to-market pension accounting in the last few years. The method allows pension gains and losses to flow into earnings sooner than under old rules, which allow companies to smooth out the impact over several years.

FedEx said it will now recognize actuarial gains and losses in the fourth quarter of its fiscal year rather than amortizing them over several years, making its operating performance easier to understand and more transparent.


http://investors.fedex.com/news-and-...g/default.aspx

Quote:
“Adopting the mark-to-market approach will align our accounting to provide greater transparency by removing certain legacy pension costs from segment operating results and recognizing them in a year-end adjustment,” said Alan B. Graf, Jr., executive vice president and chief financial officer of FedEx Corp. “This change has no operational or cash-flow impact and, importantly, does not affect benefits for plan participants. In addition, the funded status of our principal plan remains very strong.”

FedEx also announced it will lower its expected return on plan assets to 6.5 percent for segment reporting in all periods and on a consolidated basis starting in fiscal 2016. This change reflects its outlook for long-term investment returns and the current strategy for its investment portfolio.

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  #162  
Old 06-21-2015, 02:09 PM
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TATA STEEL

http://zeenews.india.com/business/ne...29464.html?v=1

Quote:
Yesterday, unions -- Community, Unite, Ucatt and GMB -- suspended the strike scheduled for June 22 after a new pension offer from Tata Steel UK, which keeps British Steel Pension Scheme (BSPS) open.

Earlier this week, they had temporarily suspended the industrial action at Tata Steel.

"We are pleased that a meeting of trade union delegates from Tata Steel sites across the UK today agreed to recommend to members a proposal which would enable UK employees to retain a modified final salary pension scheme," a Tata Steel UK spokesperson said late yesterday.

Trade unions representing workers of Tata Steel UK had announced strike action on June 22 -- the biggest industrial action in the UK in nearly three decades -- over the proposed changes in the firm's pension scheme. Over 17,000 people work at Tata Steel across sites in Wales and around England.
.....
"The decision recognises the substantial shortfall in the pension fund and the need to jointly address it, given the challenging business environment in the UK. The recommended proposal includes fair and balanced modifications to existing scheme arrangements to achieve this," he said.

The company believes that the proposal continues to provide employees with a high-quality pension, the spokesperson said.
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  #163  
Old 06-21-2015, 02:29 PM
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SINGING RIVER HEALTH SYSTEM
MISSISSIPPI

http://www.washingtontimes.com/news/...n-plan-at-88-/

Quote:
PASCAGOULA, Miss. (AP) - A new proposal from Singing River Health System would allow active employees enrolled in the pension plan to be eligible for a monthly benefit check, starting at age 67, that is about 88 percent of the original pension.

Similarly, retirees would continue to receive monthly payments at 88 percent of their original benefit. It includes an annual cost-of-living-adjustment payment at 88 percent of the last cost-of-living-adjustment payment received in December 2014.

Active employees would not receive a cost-of-living-adjustment payment upon retirement.

Singing River also proposes to add $143 million over the next several decades, through investment earnings and a reinstatement of employer contributions.

The Sun Herald reports (http://bit.ly/1JZts22 ) the company announced the new proposal in a state released Thursday night.

The hospital quit putting money into the plan in 2010 and didn’t tell retirees. The plan is now paying out $500,000 a month with no money going in, attorneys have said.



Read more: http://www.washingtontimes.com/news/...#ixzz3didDPSUz
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  #164  
Old 06-23-2015, 04:17 PM
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LAW FIRMS

https://bol.bna.com/pensions-vex-as-...partners-grow/

Quote:
Despite the continued attention on public and private retirement plans, lucrative law firm pensions afforded to retired equity partners have largely been overlooked. But with annual benefits at a minimum of $250,000 per year, these plans face funding problems that affect benefit levels as well as impact on younger partners.

“Most firms don’t want to advertise that they have problems,” Bud Schiff, a managing director and CEO of Alvarez & Marsal Executive Compensation and Benefits, explained in a telephone interview Monday. “But every law firm is a microcosm of the burdens that Social Security faces,” he added, referring to the longstanding intractable financial issues the federal system has faced.
The problems, he said, stem from a confluence of factors.

Firms with mandatory retirement are requiring partners to relinquish their status as young as 60, even though productivity and longevity can often extend long beyond that age.

In addition, the number of equity partners whose current earnings fund a significant portion of retirement benefits has at best remained static and at some firms has dropped. As a result, the ratio of active to retired partners has plummeted, so fewer partners are funding the growing number of those no longer bringing in fees for their firms.

Many firms, he said, “don’t have any real money aside.”

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  #165  
Old 06-24-2015, 05:34 PM
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"But with annual benefits at a minimum of $250,000 per year"

415 maximum = 210,000

401a17 maximum = 265,000, high 3 = 260,000

Something is awry.
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  #166  
Old 06-24-2015, 05:54 PM
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You know how executive benefits are often non-qualified plans?

These are ex-partners of law firms.
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  #167  
Old 06-24-2015, 07:08 PM
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Maybe they need to hire a lawyer?
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  #168  
Old 07-07-2015, 01:35 PM
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PME
DUTCH PENSION FOR METALWORKERS
ASSET MANAGEMENT COSTS

http://www.ai-cio.com/channel/NEWSMA...sive-Approach/

Quote:
Dutch Pension Halves Cost with Passive Approach
Ditching hedge funds and focusing on simpler investment approaches helped PME cut costs dramatically in five years.
PME, the Dutch fund for metalworkers, has halved its costs in five years by selling down complex investments and establishing a core of passive holdings.

The €39.5 billion fund announced this week it had cut asset management expenses to 0.39% at the end of 2014, down from 0.85% in 2010.

During that time the pension reduced its holdings in hedge funds significantly as the costs were not justified, according to PME General Manager Eric Uijen. This move had a major impact on reducing overall expenses, and echoed a similar move by the Dutch health care workers’ pension PFZW.

PME said it was using passive strategies to access “highly efficient” markets such as US equities.
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  #169  
Old 07-07-2015, 05:47 PM
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HEDGE FUNDS

http://www.valuewalk.com/2015/06/pub...nds-vs-sp-500/

Quote:
Pension funds with the largest investment in hedge funds
The Wall Street Journal noted that the corporate and private-sector pension funds started increasing their bets on hedge funds since the financial crisis in 2008. Private-sector pension funds recorded huge losses from their investments in stocks during the crisis.

Currently, private pension funds account nearly $1.00 of every $5.00 invested by institutional investors worldwide in hedge funds —the second largest behind public pension funds, according to Preqin.

The pension funds of Ford Motor Company (NYSE:F) and United Parcel Service have the largest investment allocations in hedge funds at $4.4 billion and $3.6 billion, respectively. Most pension fund managers invested heavily in bonds and hedge funds to protect their assets against future recessions.



Quote:
Since the financial markets, the central banks around the world implemented aggressive stimulus to support economic growth, which resulted to a multi-year rally in the equity markets. Pension fund managers who shifted investments from equities to hedge funds and other strategies skipped gains.

Data from Wilshire Consulting showed that corporate pension funds total equity portfolios declined from 54.1% in 2009 to 44.7% in 2014; total fixed income increased from 34% to 40.8%, and hedge funds climbed from 0.8% to 3.2%.

Jim McKeen, head of the hedge fund research at Callan Associates commented, “There’s certainly regret. The last five years have been disappointing for pensions invested in hedge funds.”

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  #170  
Old 07-08-2015, 09:53 PM
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FUNDED STATUS TRACKER

https://www.morningstar.com/news/pr-...r-of-2015.html

Quote:
According to the Aon Hewitt Pension Risk Tracker, which evaluates daily funded status for S&P 500 companies with defined benefit pension plans, second quarter aggregate pension funded status reached 83.4 percent, up from 80.7 percent in the first quarter of 2015.

"As interest rates improved over the quarter, overall plan liabilities decreased, leading to better funded status for U.S. pension plans," said, Ari Jacobs, Global Retirement Solutions leader at Aon Hewitt. "Moving into the second half of the year, pension plan sponsors will need to keep a watchful eye on changes to interest rates, which could cause volatility in funded status."

Funded status gains were largely driven by an estimated asset reduction of $57 billion, which was outpaced by a $138 billion reduction in liabilities year-to-date. Aon Hewitt's analysis also showed that 10-year Treasury notes were up over the quarter (0.41 percent) and credit spreads widened to 0.17 percent, resulting in a 0.58 percent increase in the discount rate for the quarter for the average pension plan.

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