http://www.watsonwyatt.com Latest Watson Wyatt Retirement Articles and News en-us Copyright 2009 Watson Wyatt Worldwide http://backend.userland.com/rss091 7/4/2009 5:03:15 PM 20 Workers with defined benefit (DB) plans are much more positive about their retirement prospects than those who participate only in a defined contribution (DC) plan. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=21632The Trustee of the Devonport Royal Dockyard pension scheme has become the first to enter into a longevity swap agreement, having signed a contract with Credit Suisse last night. Watson Wyatt was the lead adviser on the agreement, which protects the scheme against the risk of having to pay out more because its pensioners live longer than expected. [EUROPE]http://www.watsonwyatt.com/search/parser.asp?ID=21593For the first time, the majority of Fortune 100 companies now offer new salaried employees only a defined contribution (DC) plan, such as a 401(k). And in another first, more Fortune 100 companies offer hybrid pension plans, such as account-based cash balance plans, rather than traditional defined benefit (DB) plans. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=21633As many workers are being hit by large losses to their retirement funds, a significant number of older workers are planning to delay their retirement, according to findings from a recent survey conducted by Watson Wyatt. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=21644Under regulations proposed by the IRS, an employer undergoing a substantial business hardship can reduce or suspend 401(k) safe harbor nonelective contributions during a plan year. The rules give employers an alternative to terminating their safe harbor plans. The regulations are proposed to be effective for amendments adopted after May 18, 2009, but employers may rely on the proposed regulations for guidance in the meantime. If the final regulations are more restrictive than those proposed, the stricter provisions will not be made retroactive. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=21571The adoption of International Financial Reporting Standards (IFRS) is advancing in fits and starts. The Securities and Exchange Commission (SEC) proposed a roadmap to IFRS in late 2008, but SEC Chairwoman Mary Schapiro expressed misgivings about the plan during her confirmation hearing earlier this year. Moreover, the SEC has received roughly 200 comments on its roadmap, some voicing support but others — including many from corporations and two from members of Congress —forcefully objecting to the proposed reporting regime. The Financial Accounting Standards Board (FASB) supports the goal of international reporting standards but has expressed some reservations and recommendations for modifications to the roadmap. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=21573Superannuation Plans (SPs) and Approved Deposit Funds (ADFs) could become subject to a new accounting standard, in accordance with an exposure draft issued in May 2009 by the Australian Accounting Standards Board (AASB). The proposed standard would require additional financial statements, more detailed disclosures with respect to member benefits and a new approach to measuring defined benefit obligations. [AUSTRALIA]http://www.watsonwyatt.com/search/parser.asp?ID=21639The International Accounting Standards Board (IASB) has recently proposed an amendment to IFRIC 14 (The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction) that affects asset ceiling calculations under IAS 19. The IASB will receive comments on this draft until July 27, 2009. [SWITZERLAND]http://www.watsonwyatt.com/search/parser.asp?ID=21543The Pension Protection Fund has today announced that the amount it will aim to raise through levies in 2010/11 will be £700 million plus an allowance for wage inflation, while warning that the levy "may rise in future years". [EUROPE]http://www.watsonwyatt.com/search/parser.asp?ID=21576The legislative push for new fee disclosure requirements for defined contribution plans is gaining momentum on Capitol Hill. Key lawmakers have brought back fee disclosure bills they sponsored during the 2007-2008 legislative session. Representatives George Miller (D-Calif.) and Rob Andrews (D-N.J.) reintroduced the 401(k) Fair Disclosure for Retirement Security Act (H.R. 1984). Senators Herb Kohl (D-Wis.) and Tom Harkin (D-Iowa) reintroduced the Defined Contribution Fee Disclosure Act (S. 401). And on June 10, Representative Richard Neal (D-Mass.) introduced a modified version of the Defined Contribution Plan Fee Transparency Act (H.R. 2779). [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=21537Comments on the risk characteristics of target-date funds that were presented by Mark J. Warshawsky, Director of Retirement Research at Watson Wyatt Worldwide, at a joint hearing of the U.S. Department of Labor (DOL) and the Securities and Exchange Commission (SEC) in Washington, D.C., on June 18, 2009. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=21521As many workers are being hit by large losses to their retirement funds, a significant number of older workers are planning to delay their retirement, according to a survey by Watson Wyatt, a leading global consulting firm. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=21512One in five employees without alternative pension savings are likely to opt out of Personal Accounts according to two-thirds of the financial services industry experts at Watson Wyatts latest Debating Forum. [EUROPE]http://www.watsonwyatt.com/search/parser.asp?ID=21471UK – June 11, 2009 – The uncertainty the financial crisis and recession is creating for the pensions industry and the economy will be the theme of the Watson Wyatt and Cass Business School lecture delivered by Dr Martin Weale, Director of the National Institute of Economic and Social Research (NIESR), later this month. [EUROPE]http://www.watsonwyatt.com/search/parser.asp?ID=21392The recently released annual reports from the trustees on the financial state of Social Security and Medicare show the current deep recession is taking a toll on the financing of both programs. The adverse consequences will occur in the short run — as outlays rise somewhat and, more significantly, revenues from payroll taxes fall — and in the long run, as the trust funds are smaller than expected. While the unsustainability of Medicare — caused mainly by rapidly rising health care costs — has been well known for some time, the imminent likely cash flow shortfall in Social Security’s finances is a more surprising and possibly more important development. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=21461UK - June 10, 2009 - The Committee of European Insurance and Occupational Pension Supervisors CEIOPS annual report, published this week, includes clear evidence that the European body of supervisory authorities supports the development of cost effective multi-country pension funds, according to Watson Wyatt. [EUROPE]http://www.watsonwyatt.com/search/parser.asp?ID=21380GLOBAL, June 9, 2009 — While risk managers in the pharmaceutical industry typically focus on R&D, patent and other standard industry risks, pension risks also merit close attention. Pension risks pose a potential threat to their companies’ credit rating, loan covenants and dividend policy, despite the pharmaceutical industry’s secure cash position, according to the special pharmaceutical sector issue of Visions, a new Watson Wyatt global research publication. [GLOBAL]http://www.watsonwyatt.com/search/parser.asp?ID=21389UK - June 5, 2009 - Employers should consider warning their higher-paid employees to be very careful if they wish to increase, or even vary, their level of pension contributions over the next two years or they could face severe tax penalties, according to consultants Watson Wyatt. [EUROPE]http://www.watsonwyatt.com/search/parser.asp?ID=21349In 2008, the value of investments held by defined benefit (DB) pension plans dropped precipitously. Provisions of the Worker, Retiree and Employer Recovery Act (WRERA), judicious elections of valuation methods and the recent IRS announcement on the “applicable month” will ameliorate the impact of the market decline on 2009 required contributions. However, DB plan sponsors also face a steep increase in their variable-rate premium (VRP), which is paid to the Pension Benefit Guaranty Corporation (PBGC) to insure vested employee pension benefits. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=21297Older workers are much less confident about their retirement security than they were two years ago as a result of the financial crisis, according to a new survey by Watson Wyatt, a leading global consulting firm. The survey also found that workers with defined benefit (DB) plans are much more confident in their retirement prospects than those who participate only in a defined contribution (DC) plan [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=21316