1 in 5 Pension Plans are Overfunded, NEPC Study Finds
20 total views
1 in 5 pension plans are overfunded, a 10 percent increase from 2016, according to NEPC’s 2017 Defined Benefit Plan Trends Survey. According the NEPC’s findings, plan sponsors are making changes to their glide paths — with 70 percent of those surveyed reporting they formally reviewed their glide path this year. The survey also found Pension Benefit Guaranty Corporation rate premium increases affect how plan sponsors plan to de-risk their portfolios. 80 percent of plan sponsors surveyed said they will make changes to their plan strategy within the next six months. As for how, 24 percent said higher contribution, 34 percent said partial risk transfer, 22 percent said lump sums.
Some families are products of second, and sometimes third marriages, and with aging parents in the mix, it can…