On August 2nd we wrote a blog post on OPEBs and asked the question, "Just how awful is the funding issue?" Well, we have some additional anecdotal evidence and it isn't looking too good. The Houston Chronicle has recently published...

As a lifelong Mets fan, I wish that the title of this article was referring to the heroics of Mets rookie first baseman Pete Alonso, but unfortunately, I am writing today about the continuing demise of defined benefit plans in...

The Pension Benefit Guaranty Corporation (PBGC) has issued a report detailing its financial health, and unfortunately, the agency may need life support. According to the release, the average expected deficit for the multiemployer backstop is $90 billion by 2028. Worse,...

As anyone knows that follows this blog, the Butch Lewis Act has passed through the House and currently resides in the Senate. The backbone of this legislation is a government loan program that provides low-interest rate loans provided by a...

The WSJ published an article today titled, "America's Pension Funds Fell Short in 2019". The subtitle to the article mentioned that public pension plans with assets greater than $1 billion generated a median return of 6.79% during the fiscal year...

Using the return on asset assumption (ROA) as the discount rate for pension plan liabilities has masked the true funded status for those pension systems operating under a GASB accounting framework. As most everyone knows, liabilities are bond-like in how...

I've spent most of my career focused on general pension-related issues, and recently with a more laser focus on funding policies and asset allocation geared to the pension plan's liabilities. Anyone who reads this blog knows that we have many...

The return on asset (ROA) calculation The ROA calculation is certainly a mysterious activity. Why would a pension plan with a 60% funded ratio and another with a 90% funded ratio have the same ROA, which we witness frequently? Why...

I am thrilled to announce that I've joined Ryan ALM. I've had the pleasure of working closely with Ron Ryan on a number of initiatives during the last 6+ years. I believe that Ron is one of the few true...

The Committee for a Responsible Federal Budget produced a blog the other day. Here is the first paragraph - "The House Ways & Means Committee is considering pension reform legislation that CBO estimates will add $ 64 billion to deficits...