Institutional Investors

US corporate pensions to double contributions – Mercer

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Company defined benefit plans are expected to see their 2011 required contributions rise with nearly two-thirds of plans surveyed by Mercer seeing an increase of at least 50%, and more than one-quarter are expected to see their required contributions more than double.

Mercer analysed 849 private sector, single-employer plans subject to the Pension Protection Act with more than $191 billion in combined assets. Historically low interest rates driven in large part by US economic policy, together with equity market declines, will hit plan sponsors hard in 2011, says Mercer – although the investment consultant says the full effects