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 2019 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, 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