Tag: DB plan funding

Ideas to Help Manage Surplus Funding When Clients Terminate DB Plans

According to Brian Donohue, with October Three Consulting, the master strategy to get to full-funding-but-no-surplus on termination is to reduce plan risk by gradually changing the plan’s asset strategy as the plan approaches full funding—the “glide path” strategy that some sponsors have adopted.

Accelerating DB Funding an Important Strategy to Discuss

Tax reform has only increased the incentive to accelerate contributions to defined benefit plans, and there will still be incentives in the future, but plan sponsors won't benefit if they don't lock in those gains.

Updated Mortality Tables for 2019 Published

The IRS notice also includes a modified unisex version of the mortality tables for use in determining minimum present value for distributions with annuity starting dates that occur during stability periods beginning in the 2019 calendar year.