While corporate America continues to move away from defined benefit (DB) plans, these designs have enjoyed a sharp uptick in popularity in some market segments in recent years. The trend is due in part to enabling legislation (the Pension Protection Act (PPA), enacted in 2006), which has sparked a wave of innovative plan design solutions…. Read More
As required by the Pension Protection Act, in 2010 IRS issued regulations that allow a cash balance (CB) plan to base interest credits on ‘market rates of return.’ This new plan design allows the employer to transfer investment risk, and reward, in a cash balance plan to the participant – just like a defined contribution… Read More
Lawmakers in Washington have a budget problem, and a small part of the solution being considered is, as we understand it, an extension of interest rate stabilization relief under 2012’s “Moving Ahead for Progress in the 21st Century Act” (MAP-21). The proposal is to extend the MAP-21 25-year average floor at the 90% level through… Read More
We have been posting articles regularly on the effect of the “Moving Ahead for Progress in the 21st Century Act” (MAP-21) interest rate floor on defined benefit plan funding. IRS recently published MAP-21 rates for 2014. This article briefly reviews the new rates and their implications for plan funding. Background — valuations interest rates under… Read More
In September, we published an article on the nondiscrimination problem presented by some frozen plans. Generally, the problem arises because, as part of a plan freeze or similar transaction, employers create a ‘closed group’ of ‘old’ employees who get a different, ‘better’ benefit than the benefit provided to new employees. As we discuss in our… Read More
The Social Security Administration just announced benefit increases effective in 2014. Current retirees will receive a cost-of-living increase, beginning in January 2014, of 1.5%, reflecting the increase in CPI-W between the third quarter of 2012 and the third quarter of 2013. In addition, the maximum amount of earnings subject to Social Security tax will increase… Read More
Last year we reviewed the effect of newly adopted rules under the “Moving Ahead for Progress in the 21st Century Act” (MAP-21) in our article Implications of MAP-21 for DB plan finance. At that time, we concluded that if interest rates stayed flat (as of the summer of 2012), typical DB plan sponsors would have… Read More
On August 9, 2013, the Department of the Treasury and the Internal Revenue Service released the 2013-2014 Priority Guidance Plan – generally setting priorities for the allocation of the resources for the period July 2013-June 2014. The first item under the subheading Employee Benefits/Retirement Benefits was “Guidance on frozen defined benefit plans and related matters.”… Read More
In April, the Pension Benefit Guaranty Corporation (PBGC) re-proposed reportable event regulations under ERISA section 4043. The major feature of the new proposal is a waiver of reportable event reporting where the plan sponsor meets a “financial soundness” test. This most recent proposal follows proposals by PBGC to use sponsor financial condition as a criterion… Read More
There have been a series of developments earlier this year calling attention to a crisis in multiemployer plan funding. These include: The January 22, 2013 report to Congress on Multiemployer Pension Plans submitted by the Department of the Treasury, the Department of Labor (DOL), and the Pension Benefit Guaranty Corporation (PBGC) (the “Report to Congress”)…. 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 |