DB Plan Funded Status Shows Slight Improvement in November
An increase in liability values was offset by an increase in asset values.
Tag: DB plan funding
Helping DB Plan Clients Prepare for a Plan Termination
Consultants with Findley discussed a game plan for having data, financials and a communications strategy ready before embarking on a DB plan termination.
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.
Bill Aims to Expedite Payments to Participants Affected by Health System DB Plan Lawsuits
The legislation helps protect defendants who settle lawsuits from claims from co-defendants.
Tax Law Prompts DB Plans to Boost Funding
They have until mid-September to deduct pension plan contributions at the rate of 35%; after that, the lower 21% rate kicks in.
Lawsuit Argues Health Provider Plan Lost Its Church Plan Status
According to the compliant, the defined benefit (DB) plan was required to adhere to Employee Retirement Income Security Act (ERISA) funding rules.
Creative Funding Strategies DB Clients Should Consider
Borrowing to fund and making in-kind contributions were just a couple of the strategies Robin M. Solomon, a partner at Ivins, Phillips & Barker, shared with attendees of the 2018 PLANSPONSOR National Conference.
Tax Reform Law Leads to $6.6B Increase in Pension Plan Contributions
The reduction in corporate taxes from 35% last year to 21% starting this year incentivized companies to accelerate tax deductions.
New Committee Hears What Led to Multiemployer Plan Crisis
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.
Trend for Accelerating DB Funding Set by Largest Plans
“We expect others in the industry will take similar actions,” says Justin Owens, director, Client Strategy & Research, Russell Investments.
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.
DB Plans Have Been Helped by Funding Relief
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.
Provisions of Tax Reform Could Affect DB Plan Sponsor Strategies
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.
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.