Contributing more than the minimum required for 2017 by the September 15 deadline will result in a higher deduction for plan sponsors, and continuing to accelerate funding in the future can minimize PBGC costs, improve funded status and mitigate higher required contributions in coming years.
Tag: DB plan contributions
The company will offer a lump-sum distribution window to certain participants and transfer certain retiree assets to a group annuity.
A tax court found that the Commissioner of Internal Revenue’s report, which was prepared by an actuary, was in line with actuarial practice in calculating the annual benefit limitation, which drives DB plan contribution amounts, while the plan sponsor's report, not prepared by an actuary, was not. A federal appellate court agreed with this.
A study found DB plans that used the smoothed discount rates under current law had a much lower unfunded liability than plans that did not.