Accordingly, a lower liability discount rate means a larger funding gap between plan assets and liabilities.
As of December 2011, CAT was assuming an 8.5% rate of return on plan assets.
FORBES: Caterpillar's Chinese Disaster Has Us Wondering, What Else?
In 2004, Louisiana was leading the way to reforming the management of public pension plan assets nationally.
FORBES: Louisiana Public Pension Legislative Initiative Failed to Provide Needed Protection
Shortly before Enron's demise its employees had 62% of their retirement plan assets tied up in its stock.
Effectively, the plan sponsor (whether a private company or a government) provides insurance against underperformance of plan assets.
Funds that fail to re-evaluate investment advisory fees are simply wasting plan assets.
FORBES: Time��s Running Out For America��s Pensions (May 1, 2003 )
Lydall ( LDL) lowered its expected long-term rate of return on plan assets to 7.75% for 2012, from a prior 8%.
FORBES: Caterpillar's Chinese Disaster Has Us Wondering, What Else?
The breach of fiduciary duty allegations stem from the fact that the Plan assets are invested in a tax deferred variable annuity.
FORBES: SEC Snoozed As "Shadow Marketers" Skimmed Billions From Retirement Plans
Clearly, it was foreseeable to these professionals, as well as the company sponsor, that a heavy concentration of plan assets invested in company stock could be disastrous.
The argument for not investing in a 401(k) stems from the possibility that the cost for servicing high-interest debt may outweigh the potential performance on retirement plan assets.
The answer is that as the popularity of 529s and the dollar value of plan assets has grown, the press, and in turn, politicians and regulators, have started paying attention.
However, as a result of recent revelations regarding the impact of fees on retirement plan assets over time, they decided it was time to look for a better deal for their employees.
FORBES: With Pensions At Risk, Government Workers Must Demand Better 457 and 403(b) Retirement Plans
The net result is that the auditors rely upon unverified statements provided by custodian banks and the banks, in turn, rely upon unverified valuations provided by hedge fund managers handling plan assets.
FORBES: Pension Red Alert: 70% Of Pensions Are Never Audited
On the other end of the spectrum, the largest plans typically do not retain a broker unless it is a traditional broker processing buy and sell transactions for a pool of plan assets.
Billions in plan assets were lost.
FORBES: Can You Trust Your Employer's 401(k) Plan? Not If Company Stock Is An Option.
The fiduciaries of virtually all 401(k)s sponsored by money management firms have coincidentally concluded that hiring the employer-asset manager to manage plan assets, as opposed to any of the thousands of other registered investment advisers with competitive performances, is in the best interests of these plans.
FORBES: Flawed 401(k) Plan Structures to Blame for Systemic Failure
It seems that even the largest companies, armed with legions of expert financial advisers and ERISA lawyers who are paid hefty fees, are both prone to be out-witted by the financial vendors they entrust with plan assets and ill-equipped to identify competitive, conflict-free 401(k) investment solutions.
FORBES: Time For Workers To Demand The 401(k) Plans They Deserve: Here's A Model
Surveys in America show that, on average, younger members of a 401(k) plan tend to keep a large chunk of their plan assets in equity funds, which are riskiest but also promise the highest returns over the long run, and that members switch into less risky bond and money-market funds as they get older.
"Ignoring past performance is inconsistent with generally accepted investment practices and having the department opine on how plan assets should be invested would be a radical departure and a mistake, " joint comments filed Tuesday by the lead industry groups, the American Benefits Council, the American Council of Life Insurers and the Investment Company Institute, assert.
The company embarked on a plan to shed assets, sell non-core pieces of the business and take in joint-venture partners.
But a recent experience involving advising a defined contribution plan moving its assets to Vanguard has left us with an uneasy feeling.
FORBES: More Worries for Defined Contribution Plan Fiduciaries (August 31, 2006)
Investors said the central bank's plan to buy assets worth trillions of yen, which has government backing, would continue to weaken the currency.
When I met with team Harbinger, multiple executives confirmed that investors are not locked into the 4G plan because these assets are not gated in a side-pocket.
Since the financial industry is at the heart of Thailand's economic problems, and as Mr Tarrin helped design the plan to sell assets to foreigners, a two-day mud-slinging match could turn many voters against him.
The change would allow plan holders to roll their 401(k) assets into a Roth IRA plan, which would require them to pay taxes up front on any gains in their plan.
Expect Icahn to storm in with a plan to sell off assets, fire employees, re-cut licensing deals, you name it.
America abandoned its original plan to buy toxic assets last October in favour of extra capital because the crisis demanded faster action.
He took an inordinate amount of time to come up with his complex plan to remove toxic assets from bank balance sheets.
Treasury's plan to remove bad assets from bank balance sheets could help.
The classic situation is where a plan has increased in assets but has not renegotiated with or changed providers. 80% of smaller plans have an adviser who lacks the experience necessary to help the sponsor manage the growing plan.
应用推荐