Administration March 3, 2014

February Brought Drop in Pension Buyout Attractiveness

March 3, 2014 (PLANSPONSOR.com) – The Dietrich Pension Risk Transfer Index fell nearly three points in February to 95.33.
Reported by

The index, which tracks the relative attractiveness of annuitizing pension liabilities, also saw the annuity discount rate proxy of 3.18% fall 19 basis points from the previous month. In addition, plan funding levels dropped 4% on average in January, giving back nearly 25% of their 2013 gains as a result of underperforming assets and declining interest rates.

“Despite these setbacks, the index remains within the ‘execute’ corridor, while strongly indicating the need to understand and monitor conditions more closely,” says Geoff Dietrich, vice president of Dietrich & Associates. “The index is a great metric for tracking settlement costs, but when you dig deeper you’ll see greater swings from week to week within our market. Plan sponsors who are terminating their plan, or considering a liability settlement, would benefit from an awareness of opportunistic windows as they open.”

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The index provides a dynamically constructed, monthly directional data-point regarding the market conditions that affect settlement costs. Higher index values indicate a reduction in the theoretical settlement cost of a pension plan. The index was designed to provide pension stakeholders a mechanism for monitoring settlement market conditions, and to support effective plan governance and decisionmaking.

More information on the index can be found here. Additional commentary can be found on YouTube.

Deals and People March 3, 2014

John Hancock Names National Mid-Market Director

March 3, 2014 (PLANSPONSOR.com) – Jim Brockelman will rejoin John Hancock Retirement Plan Services as national director, mid-market.
Reported by

Brockelman will report to Bob Carroll, national sales manager, Retirement Plan Services, as he leads the company’s expansion into the 401(k) mid-market sector.

“I am very excited that Jim is back, assisting us as we expand our presence in the mid-market,” says Carroll. “His knowledge and leadership will be a great asset as we continue to grow and gain momentum.”

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Brockelman returns to John Hancock following a six-year absence, during which he held other senior sales roles. He joined Manulife in 2002 as national sales manager for the company’s managed account business, following a career in several executive roles in the mid-market defined contribution business. After Manulife acquired John Hancock in 2004, Brockelman joined John Hancock’s Retirement Plan Services business, serving as senior vice president of intermediary services, coordinating all retirement plan sales activity with the company’s intermediary sales channel, and eventually assuming the role of executive vice president of national sales.

John Hancock Financial is a division of Manulife Financial, a leading Canada-based financial services group with principal operations in Asia, Canada and the United States.

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