Tags: goldman | s&p 500 | pensions | tax | retire

Goldman: S&P 500 Firms Added $63 Billion to Pensions in 2017

Goldman: S&P 500 Firms Added $63 Billion to Pensions in 2017
(Andrey Popov/Dreamstime)

Wednesday, 25 July 2018 08:26 AM

Thanks to incentives from tax law changes and rising government fees, corporate pensions are seeing a windfall of new cash.

S&P 500 companies with U.S. pensions contributed about $63 billion to those plans in 2017, the highest level since 2003, according to a July report from Goldman Sachs Asset Management. Those companies could add another $60 billion this year, Mike Moran, the firm’s pension strategist, said in the report.

That’s a welcome sign for corporate pensions which have been facing years of low interest rates that can depress investment returns. Companies that put more money in pension plans before mid-September this year can generally get a tax deduction for those contributions under the older and higher tax rate. Companies are getting extra incentive from a rise in the fees they must pay on underfunded plans to the Pension Benefit Guaranty Corp., the government entity that backs pension plans.

“The economics of making a voluntary contribution have become more attractive given the change in tax law and rising PBGC premiums,” Moran wrote in the report. “Increased contribution activity has created a domino effect as this has been a catalyst for some sponsors to consider additional actions with their plans.”

© Copyright 2020 Bloomberg News. All rights reserved.


   
1Like our page
2Share
Personal-Finance
Thanks to incentives from tax law changes and rising government fees, corporate pensions are seeing a windfall of new cash.
goldman, s&p 500, pensions, tax, retire
198
2018-26-25
Wednesday, 25 July 2018 08:26 AM
Newsmax Media, Inc.
 
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved