Investing

Understanding the average age of participants and how employees are allocated in their investments are some factors plan sponsors should consider when evaluating a QDIA that moves participants...

State and local pension plan funded status rose 0.5% in Q2, per Wilshire.

Fees for mutual funds in defined contribution plans have declined about 60% this century, according to a new ICI report, though CITs loom as an even-cheaper competitor.

Another strong month for pension funding status puts an ‘exclamation point’ on a strong run as the Fed ponders an interest rate drop.  

Experts discuss the trends of streamlining the investment menu and adding lifetime income options

Strong investment returns pushed funding level to 79.4% in May.

Collective investment trusts are overtaking mutual funds in 401(k) plans, according to new research from Cerulli; however, barriers to adoption of CITs on investment menus remain.

Equity markets kept funding levels up even as discount rates fell in May.

Plan sponsors may need additional time and processes to consider qualified default investment alternatives, as various TDFs, managed accounts and retirement income options are all in play.

Government support and the efforts of recordkeepers will be crucial to increase the use of annuities in target date funds.

As defined benefit plan sponsors look to de-risk and offload pension liabilities, the selection of annuity providers has come under increased scrutiny in recent lawsuits.

Plan sponsors can consider plan conversions, similar to what IBM has done, hibernation or different investment strategies to reduce risk without transferring it.

Drop in asset values was partly offset by another uptick in discount rates.

GAO reports that the DOL does not offer adequate guidance on how to interpret differences across TDFs.

The firm’s 2024 research found at least three pension funds with more than 140% funding levels. 

Despite net inflows to mutual funds in February, reversing the long-term trend of outflows is unlikely, according to analysts.

The Council for Economic Education offers lessons related to the annual NCAA basketball tournaments to help engage students on economics and personal finance.  

For plan sponsors, assessing their participants’ desire for both retirement income and customization are the next frontiers for target-date-fund offerings.

A plan sponsor and industry advisers discuss tactics for engaging participants with financial education programs.