Pension

American Funds Launches ABLEAmerica®, a Tax-Advantaged Savings Plan for Disability Expenses

Retrieved on: 
Tuesday, July 17, 2018
Economy, Finance, Money, Financial adviser, Liberalism in the United States, Federal assistance in the United States, Social programs, Pension, 529 plan

* American Funds is the first to offer a financial advisor-sold ABLE plan nationwide.

Key Points: 
  • * American Funds is the first to offer a financial advisor-sold ABLE plan nationwide.
  • "A skilled financial advisor can help individuals and families plan for a more secure financial future.
  • ABLEAmerica is a nationwide disability savings plan sponsored by Virginia529.
  • Depending on your state of residence, there may be an in-state plan that provides state tax and other state benefits not available through ABLEAmerica.

Vanguard Finds Increased Coverage, Plan Design Improvements For Participants Of Small Business 401(k) Plans

Retrieved on: 
Thursday, July 12, 2018
Retirement plans in the United States, Finance, Money, Economy, 401, Defined contribution plan, Pension, Solo 401

VALLEY FORGE, Pa., July 12, 2018 /PRNewswire/ --Vanguard today revealed a number of positive developments among small business defined contribution plans in its fifth annual How America Saves: Small business edition .

Key Points: 
  • VALLEY FORGE, Pa., July 12, 2018 /PRNewswire/ --Vanguard today revealed a number of positive developments among small business defined contribution plans in its fifth annual How America Saves: Small business edition .
  • The new report is a comprehensive assessment of plan design trends and participant savings behaviors in small business 401(k) plans supported by Vanguard Retirement Plan Access (VRPA), a service launched in 2011 to provide small business owners with a cost-effective, flexible 401(k) solution for their employees.
  • In addition to increased coverage, Vanguard reports that small business plans are increasingly adopting plan features that can lead to improved retirement readiness of their employees.
  • Nearly two-thirds of all eligible employees participated in their small business 401(k) plan in 2017.

L.A. Republic Services Teamsters Approve New Contract Raising Wages, Improving Benefits

Retrieved on: 
Wednesday, July 11, 2018
Economy, Pension, Personal finance, Social law

The 700-person unit voted on Monday to back the agreement after working without a contract since January.

Key Points: 
  • The 700-person unit voted on Monday to back the agreement after working without a contract since January.
  • It raises hourly pay for Republic Services drivers and mechanics.
  • In addition, the company pledges to raise its contributions towards health and pension benefits each year of the contract.
  • "Thanks to their commitment, these Republic Services workers were able to winthe strongest sanitation contract that has been negotiated by Local 396," Local 396 Secretary-Treasurer Ron Herrera said.

Milliman joins Alliance for Lifetime Income as part of firm's larger vision to improve and protect Americans' retirement security

Retrieved on: 
Tuesday, July 10, 2018
Economy, Finance, Money, Personal finance, Milliman, Social Security, Pension, Retirement

Milliman clients include pension plan sponsors, defined contribution plan sponsors, and providers of guaranteed lifetime income solutions.

Key Points: 
  • Milliman clients include pension plan sponsors, defined contribution plan sponsors, and providers of guaranteed lifetime income solutions.
  • The firm brings a broad perspective on retirement security to the Alliance, while also providing some of the sharpest minds on the retirement income challenge facing many Americans.
  • "The insurance industry is poised to play a major role in solving the retirement income crisis in America," Mungan added.
  • "Through the pooling of risk, a cornerstone of insurers, retirees can help fill the income gap between their Social Security and employer-provided retirement, and their true lifetime income needs."

Milliman analysis: Corporate pension funding increases by $23 billion in June as discount rates hit two-year high

Retrieved on: 
Monday, July 9, 2018
Economy, Finance, Money, Pensions, Milliman, Financial markets, Employee Retirement Income Security Act, Pension, PBO

"Six months into 2018 and corporate pensions are well ahead of where they started at the beginning of the year," said Zorast Wadia, co-author of the Milliman 100 PFI.

Key Points: 
  • "Six months into 2018 and corporate pensions are well ahead of where they started at the beginning of the year," said Zorast Wadia, co-author of the Milliman 100 PFI.
  • By comparison, the 2018 Milliman Pension Funding Study reported that the monthly median expected investment return during 2017 was 0.55% (6.8% annualized).
  • The projected benefit obligation (PBO) decreased by $28 billion during June, lowering the Milliman 100 PFI value to $1.644 trillion.
  • The information, data, and footnotes do not represent the funded status of the companies' U.S. qualified pension plans under ERISA.

The Geneva Association: Annuitisation as an Insurance Solution to People Outliving Their Retirement Savings

Retrieved on: 
Tuesday, July 3, 2018
Economy, Finance, Money, Annuities, Actuarial science, Financial services, Personal finance, Retirement, Pension, Geneva Association, Life annuity, Insurance

The risk of people outliving their retirement savings represents a threat to their standard of living, meaning many could lapse into poverty; however, the annuitisation of occupational pension assets represents an insurance solution to this societal issue, according to a study of The Geneva Association, the leading international think tank of the insurance industry.

Key Points: 
  • The risk of people outliving their retirement savings represents a threat to their standard of living, meaning many could lapse into poverty; however, the annuitisation of occupational pension assets represents an insurance solution to this societal issue, according to a study of The Geneva Association, the leading international think tank of the insurance industry.
  • Anna Maria D'Hulster, Secretary General of The Geneva Association, said: "Starting to save earlier, at a higher rate, and increasing contributions over time helps to secure a large enough Pillar II pension to fund retirement.
  • Purchasing a lifetime annuity with all or part of the retiree's Pillar II can help to ensure that an individual will not outlive his or her retirement funds."
  • The Swiss system has features that cause the average Swiss employee to save more for retirement than his or her counterpart in the U.S. or U.K.

Average 401(k) Deferral Rate Reaches All-Time High

Retrieved on: 
Monday, July 2, 2018
Economy, Finance, Money, Retirement plans in the United States, Personal finance, Tax avoidance, Tax deferral, Pension, 401

T. Rowe Price Retirement Plan Services Inc. today announced the average employee pretax deferral rate reached 8.3 percentthe highest in the 10 years T. Rowe Price has been reporting participant data.

Key Points: 
  • T. Rowe Price Retirement Plan Services Inc. today announced the average employee pretax deferral rate reached 8.3 percentthe highest in the 10 years T. Rowe Price has been reporting participant data.
  • In addition, the number of retirement plans with a 6 percent default deferral rate surpassed the number of plans with a 3 percent default rate, which is considered the industry standard, for the first time.
  • The average participation rate in auto-enrollment plans was over 42 percentage points higher than in plans without auto-enrollment.
  • Market appreciation and the increase in default deferral rates helped significantly boost participant account balances.

Regional Employment Push Fueled by Strong Growth, Resonating Message

Retrieved on: 
Thursday, June 28, 2018
Economy, Finance, Money, Financial services, Insurance, Insurance industry, OneAmerica Financial Partners, Inc., Employee benefits, Pension

"We've come up with a remedy to middle class workers' paycheck protection problem and the offering, backed by our strong sales support, is resonating with employers and brokers," said Steven Lynch, vice president, sales and service, employee benefits for OneAmerica.

Key Points: 
  • "We've come up with a remedy to middle class workers' paycheck protection problem and the offering, backed by our strong sales support, is resonating with employers and brokers," said Steven Lynch, vice president, sales and service, employee benefits for OneAmerica.
  • OneAmerica provides core, foundational group disability and life insurance products offered in a streamlined, quick-to-implement package.
  • "We're already celebrating another year of double-digit growth by adding to our successful, values-driven team," said Lynch.
  • These products include retirement plan products and recordkeeping services, individual life insurance, annuities, asset-based long-term care solutions and employee benefit plan products.

Ascensus Expands California Presence with Agreement to Acquire QBI, LLC

Retrieved on: 
Wednesday, June 27, 2018
Personal finance, Economy, Finance, Money, Coverdell Education Savings Account, Queensland Brain Institute, Pension, Ascensus, Inc.

DRESHER, Pa., June 27, 2018 /PRNewswire/ -- Ascensus , a technology-enabled solutions provider that helps more than 8 million Americans save for the future, has entered into an agreement to acquire QBI, LLC (QBI).

Key Points: 
  • DRESHER, Pa., June 27, 2018 /PRNewswire/ -- Ascensus , a technology-enabled solutions provider that helps more than 8 million Americans save for the future, has entered into an agreement to acquire QBI, LLC (QBI).
  • Based in Woodland Hills, California, QBI is one of the largest administrators of defined contribution and defined benefit plans in the country.
  • "In addition, their strong presence in California allows us to increase our footprint in a region that is geographically attractive to us.
  • Ascensus supports over 60,000 retirement plans, more than 4 million 529 education savings accounts, and a growing number of ABLE savings accounts.

Will Social Security Save Retirement? Many Americans Think So, According to New Personal Capital Survey

Retrieved on: 
Tuesday, June 26, 2018
Economy, Liberalism in the United States, Money, Finance, Personal finance, Social Security, Taxation in the United States, Social programs, Pension, Retirement

Social Security follows closely behind employer-sponsored plans (27 percent) as a top expected revenue stream in retirement.

Key Points: 
  • Social Security follows closely behind employer-sponsored plans (27 percent) as a top expected revenue stream in retirement.
  • Yet, based on the Social Security trustees' 2018 annual report , the Social Security fund will be depleted by 2034 and for the first time in 36 years, has begun dipping into its reserves to make monthly payments.
  • "With the retirement landscape changing, it's more important than ever for Americans to improve and act on their financial knowledge.
  • Personal Capital is a hybrid digital wealth management company based in San Carlos, California with more than $7B assets under management.