Posts Tagged ‘pension’
The Power of the PENsion: Labor Day and the Pension Plan
Pension Plans may be declining in numbers, but for millions of workers they are an essential retirement benefit with a history that is tied to Labor Day. Although summer may end officially on September 21, for most Americans, the season ends with Labor Day. The first Labor Day was celebrated in 1882. Far from marking…
Read MoreThe Power of the PENsion: Contributions – Pay Now or Later?
It may be a Prime Day to consider your pension plan contributions. You can pay now or later and there are benefits and risks to each decision. Amazon’s annual Prime Day event ran for two days on July 11 and 12. Nothing raises consumer now-or-later decisions quite like it. For 2023, the number one item…
Read MoreThe Power of the PENsion
Private sector pension plans originated as early as 1875. By 1950, in our post-war manufacturing economy, more than 25% of the private sector workforce had a pension (or defined benefit) plan, offering employer-funded benefits with guaranteed payment (in lump-sum or in payment streams) at retirement. The advent of defined contribution plans like 401(k) plans, with…
Read MoreGilt Trip: What Plan Sponsors Can Learn from the U.K. Pension Fund Crisis
Pension plan sponsors across the United Kingdom endured a harrowing week in late September as an unexpected spike in long gilt (or U.K. government bond) yields exposed their levered hedging programs to the brink of insolvency. Some sponsors went to bed feeling secure about their diversified plans (with seemingly prudent hedges) and woke the next…
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