Fears of a slowdown in China rippled through financial markets in August, producing drops in stock markets around the world and erasing most of the ‘cushion’ pension sponsors had built up during 2015. Both model pension plans we track lost ground in August – Plan A slipped more than 3% and Plan B lost more… Read More
In our prior article, we discussed the financial statement impact for defined benefit plans of changes in interest rate and mortality assumptions. In this article we consider the effect of those changes on ERISA minimum funding requirements. For funding, we now have some certainty about what will be two major drivers of increases in minimum… Read More
On July 31, 2015, IRS released Notice 2015-53, providing static mortality tables for 2016, updated for mortality improvements. The update in the notice is in line with expectations and reflects the current rules. Those rules use the RP-2000 Mortality Tables “adjusted for mortality improvement using Projection Scale AA.” As we have discussed (see our article… Read More
Two major factors affecting defined benefit plan finance are interest rate and mortality assumptions. We expect significant changes to both these factors in the coming years. Federal Reserve Chair Janet Yellen has indicated that the Fed expects to increase short-term interest rates later this year. Interest rate relief under Highway and Transportation Funding Act of… Read More
as of July 31, 2015 Falling interest rates during July increased pension liabilities, producing losses during the month, although both model pension plans we track remain ahead for the year. Plan A lost 2% last month but remains up 5% for the year, while Plan B dropped 1% during July but remains up 2% so… Read More
In this Current Outlook we review legislation introduced that would ease the rules on electronic disclosure. We also briefly discuss the effect of the Supreme Court’s decision in Obergefell (the same-sex marriage case) on retirement plans and its decision not to review the Fourth Circuit’s decision in Tatum v. R. J. Reynolds Tobacco Company. Electronic… Read More
Many sponsors maintain cash balance plans, either as (1) their main retirement benefits program, (2) a program for a specific group of employees (e.g., employees ‘grandfathered’ in connection with a ‘soft freeze’), or (3) a legacy benefit for certain employees (in connection, e.g., with a ‘hard freeze’). In 2014, IRS finalized cash balance plan regulations,… Read More
On July 9, 2015, IRS released Notice 2015-49, Use of Lump Sum Payments to Replace Lifetime Income Being Received By Retirees Under Defined Benefit Pension Plans. The Notice effectively prohibits, as of July 9, 2015, the payment of lump sums to retiree-annuity recipients in de-risking transactions. In this article we review the Notice. Background –… Read More
In this Current outlook we review a number of recent developments: DOL’s new rule providing a 2-month ‘cushion’ for the annual statement deadline; IRS’s extension of its ‘closed plan’ relief to 2016; Congressional questioning about why the SEC is not more involved in the conflicted advice regulation project; the reintroduction of the SEAL Act, providing… Read More
Under IRS’s Employee Plans Compliance Resolution System (EPCRS), if a 401(k) plan sponsor fails to make a contribution that an employee has elected, ‘correction’ generally requires that the sponsor, among other things, make a contribution equal to 50% of the employee’s ‘missed deferral.’ In Revenue Procedure 2015-28, released on April 2, 2015, IRS provided two… Read More
友情链： im体育账号_im体育下载安装苹果版_im 体育注册入口 | im体育游戏 IM体育竞猜平台|im体育下载 | im体育app平台下载|im体育在线app首页 - im国际体育客户端 | IM体育软件~im体育 im体育平台_im国际体育app在线下载 | IM体育专家-im体育科技 - im国际体育手机登陆v4.1.27 Android 版 | im体育电竞足球_im体育下载苹果 _ im国际体育真人 | im电竞体育靠谱,im体育在线app官网-im国际体育代理网 |