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Just got annual funding notice for my pension plan
Old 05-06-2016, 10:17 AM   #1
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Just got annual funding notice for my pension plan

I never read one of those letters before - After all, I will only get $385/mo at age 62 (non-COLA), so I don't really think much about it (although it is nice to have this definitely, assuming the company doesn't fold before then. When I found out years and years ago that they were going to give me $385/mo at age 62 (I must have been in my 40's then- I am 57 now), I laughed and said to myself "I wonder if it's enough to buy me a dinner by the time I am eligible to receive this" - I have a feeling it might buy me more than one dinner as long as inflation doesn't skyrocket in the next 5 years..)

Anyway, the letter shows the asset allocations of the plan

Stocks 42.90%
Investment grade debt instruments 44.50%
High-yield debt instruments 3.90%
Real estate 5.70%
Other 3%

I wish it showed more details, but I like the allocations! I should use something similar even!

Do you know your plan's asset allocations? Is yours similar to mine?
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Old 05-06-2016, 02:16 PM   #2
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49.43,49.96,0.61,0.00,0.00. Still over funded by almost 10%, and for this I thank God.
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Old 05-06-2016, 02:34 PM   #3
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Don't recall seeing any asset allocation detail on my plan.


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Old 05-06-2016, 02:37 PM   #4
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you can look up your plan's asset allocation on the Schedule R of Form 5500


google "efast lookup" and enter your plan name
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Old 05-06-2016, 04:56 PM   #5
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The pension system I belong to is 46% equities, 6% credit bonds, 15% US Treasuries, 14% hedged assets, 8% private equity, 8% private real estate, 2% cash, 1% private credit


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Old 05-06-2016, 05:18 PM   #6
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Quote:
Originally Posted by Winemaker View Post
49.43,49.96,0.61,0.00,0.00. Still over funded by almost 10%, and for this I thank God.

Over or under funded also depends on the assumed returns. A pension that is over funded assuming 9% might be under funded if it assumes 5% .


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Old 05-06-2016, 05:25 PM   #7
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Over or under funded also depends on the assumed returns. A pension that is over funded assuming 9% might be under funded if it assumes 5% .


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My system is assumed at 8% which I am not a fan of at all....It is still very adequately funded near 90%. And with 40 Billion in assets it isnt about to go under. Besides, I have a second built in assumption...That being they make future workers work longer to get theirs or lower the multiplier, or make then increase their contribution rate to get me safely to my pine box without loss of funds.
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Old 05-06-2016, 06:09 PM   #8
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My plan gave these calculations: net plan assets ~660,000,000 /plan liabilities ~$602,000,000=~109.65% No projectedt or actual rate of return given, however, it lists the assets for prior years as of Jan 1st.
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Old 05-06-2016, 06:27 PM   #9
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Received MegaCorp's notice a couple of days ago. The retirement plan has been closed to "new" hires since the end of 1999. For those of us covered by it, here is 2015's breakdown of investments:

  • Stocks - 25%
  • Investment grade debt instruments - 42%
  • High-yield debt instruments - 0%
  • Real estate - 4%
  • Other - 29%
The summary does not say what constitutes 'Other'.

What I find more interesting is the breakdown of those covered:
  • Total covered Employees and beneficiaries ~ 39,000
  • Current employees ~ 7,000
  • Retirees receiving benefits (that's me!) ~ 25,000
  • Retirees or others no longer working for company and eligible for future benefits ~ 7,000
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Old 05-07-2016, 03:48 AM   #10
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My pension fund seems a lot less conservative than the others here. The asset allocation is essentially 70/30, with 0 for all the rest.

I posted a related thread a few days ago:

Your pension fund healthy? Who knows?
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Old 05-07-2016, 10:35 AM   #11
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Interesting thread. It made me look at the notice I got this week. Usually I just check to see that we're still over 100% and then recycle it. I'm expecting about $750/mo, no cola at age 62; a little more if I wait to age 65.

Asset allocation:
3.2% Interest-bearing cash
19.4% U.S. Gov't securities
34.1% corporate debt instruments
27.0% corporate stocks
11.1% partnership/joint-venture interests
0.6% interest in common/collective trusts
2.1% interest in 103-12 investment entities
1.1% interest in registered investment companies
0.1% employer securities
1.3% other

At the end of 2015, the plan had $51B in assets with $47B in liabilities to these beneficiaries:
49,423 current employees
168,836 retired
76,666 past employees with rights to future benefits -- this is where I fall
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