Administration November 3, 2015

Pension Funded Status Sees October Gain

The aggregate funded ratio for U.S. corporate pension plans rose by more than 3%.
Reported by

The aggregate funded ratio for U.S. corporate pension plans increased by 3.2% to 84.1% for October, according to Wilshire Consulting, the institutional investment advisory and outsourced-CIO business unit of Wilshire Associates Incorporated.

The rise in funding was the result of an increase in asset value and no change in liability value.

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“We estimate that overall the funded ratio for the plan sample increased by 3.2%, from 80.9% in September to 84.1% in October,” says Ned McGuire, vice president and member of the Pension Risk Solutions Group of Wilshire Consulting. “The increase in funding levels was driven by a 4% increase in asset value and no change in liability value. The asset result is due to positive returns for most asset classes.”  

The aggregate figures represent an estimate of the combined assets and liabilities of corporate pension plans sponsored by S&P 500 companies with a duration in-line with the Citi Group Pension Liability Index Intermediate. The Funded Ratio is based on the CPLI Intermediate liability, with service cost, benefit payments and contributions in line with Wilshire’s 2015 corporate funding study. The most current month end liability growth is estimated using the Barclays Long Aa+ U.S. Corporate Index. 

The assumed asset allocation is:

  • U.S. Equity – 32%;
  • Non-U.S. Equity – 21%;
  • Core Fixed Income – 18%;
  • Long Duration Fixed Income – 27%; and
  • Real Estate – 2%.
Break from the Grind November 3, 2015

Millennials Prefer Performance Conversations

Reported by

Human resources (HR) services provider TriNet found traditional performance reviews have a negative impact on working Millennials.

Sixty-two percent of Millennials have felt “blindsided” by a performance review, and 74% frequently feel “in the dark” about how their managers and peers think they’re performing at work. Nearly half (47%) say receiving a performance review makes them feel like they can’t do anything right.

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Nearly one in four (22%) Millennials have called in sick because they were anxious about receiving their review. More than half (59%) frequently feel their manager is unprepared to give feedback during performance reviews.

Millennials reported reacting to a performance review by:

  • looking for a new job (28%);
  • complaining to coworkers (35%);
  • cursing (15%); and
  • crying (15%).

Sixty-nine percent of Millennials see their company’s review process as flawed. Nearly nine out of 10 (85%) would feel more confident in their current position if they could have more frequent performance conversations with their manager.

The study was conducted by Wakefield Research in September, and surveyed 1,000 U.S full-time employees born after 1980.

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