The largest corporate defined benefit (DB) sponsors in the U.S. don’t follow industry trends – they set them. They generally have the best access to service providers with the latest innovative strategies and have experienced staffs focusing on the DB plan. Gathering and understanding the policy and strategy trends among these 19 jumbo-sized sponsors ($20 billion club), helps us not only observe current trends, but also provides a glimpse into where the industry may be headed.
This paper highlights the analysis of the 2016 annual filings of the $20 billion club. We take a look at the notable activity in 2016, key statistics and the industry trends by reviewing their:
- Plan design
- Funding policy
- Investment policy
- Risk transfer