Witnesses for the Joint Select Committee on Solvency of Multiemployer Pension Plans said demographics, failing industries and market returns led to the insolvency of multiemployer pension plans.
“We expect others in the industry will take similar actions,” says Justin Owens, director, Client Strategy & Research, Russell Investments.
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.
DB plan sponsors may want to make a voluntary contribution to their plans in 2018 to claim a deduction at their former, higher tax rate, according to Michael A. Moran, with GSAM.
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.