Friday, December 9, 2016

Yale pension funds under pressure - ISHAAN SRIVASTAVA, Yale Daily News

Yale has begun to take steps to address the adverse impact a low interest rate environment will have on retirement benefits for its employees. In a year of strong financial performance — the University reported an $86 million budget surplus in fiscal 2016 — funding retirement benefits constituted the largest addition in liabilities for the University. Yale’s financial report indicated that these additional contributions were one of the primary factors that led to a 3 percent decline in net assets for the University from the prior year. According to the report, the cost of providing employee benefits increased approximately 7 percent, or $545 million, from fiscal 2015, representing the largest year-on-year percentage-point increase since the 2008–09 financial crisis.

No comments:

Post a Comment