Investing

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.

Pension trackers report record corporate pension funding in February due to strong markets and higher interest and discount rates.

The Senate now needs to consider the bill that would also expand access to capital for certain businesses.

The legislation is a first step to allowing the lower-cost investments' use in nonprofits and school retirement plans.

Opportunities may arise for plan sponsors to take advantage of excess pension assets, but taxes must be considered.