New Mortality Estimates, from Art Cooper
New mortality estimates by the Society of Actuaries, to be adopted by most private company defined benefit pension plans, will cause DB plan obligations to grow by about 7%, increasing the motivation of plan sponsors to offload their plan obligations to insurers:
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Art Cooper on February 24, 2015 12:28 pm
The effects of these new estimates are already being felt, as described in “Longer Lives Hit Pension Plans Hard,” on p B1 of the Feb 24 WSJ. GM, e.g., announced the mortality changes had caused the funding of its US pension plans to fall short by an additional $2.2 billion and contributed to significant pension losses that will be filtered into its earnings.