Tag: DB plans

U.S. equities were the driver of rebounds from the 4th quarter of 2018, according to the Northern Trust Universe and the Wilshire Trust Universe Comparison Service.

The agency explains that, in limited situations, employers will be able to use the soon-to-be issued coverage forms to request an opinion letter about whether a plan being developed is likely to receive PBGC coverage.

During 2018, the $20 billion club shifted asset allocations significantly away from risky assets and into fixed income, Russell Investments found.

Steidle Pension Solutions, LLC (SPS) announced that plan sponsors using SPS administration and actuarial services will pay only $1,200 for full-service administration, and its plan document restatement fee is only $325.

The list identifies matters that may involve either mandatory or discretionary plan amendments depending on the particular plan, and may reference other significant guidance that affects daily plan operations.

The IRS has issued Notice 2019-26, which specifies updated mortality improvement rates and static mortality tables, as well as a modified unisex version of the mortality tables, to be used for defined benefit (DB) plans.

Pension plans’ funding rose a mere 70 basis points last year, according to Goldman Sachs Asset Management.

Actions taken by defined benefit (DB) plan sponsors helped them reduce Pension Benefit Guaranty Corporation (PBGC) premiums, according to a J.P. Morgan analysis.

The agency previously announced it would amend required minimum distribution regulations in a way that would prohibit the offering of lump-sum windows to defined benefit (DB) plan participants already retired and in pay status.

They also believe that pensions do a better job than 401(k)s in terms of ensuring retirement security.

According to a study from the National Institute on Retirement Security, in 2016, each dollar paid out in pension benefits supported $2.13 in total economic output nationally.

“Looking forward to 2019, we think many plan sponsors will continue to explore risk transfer activities as well as review their investment policies to ensure they are aligned with an evolving market environment,” says Scott Jarboe, a partner in Mercer’s Wealth business.

According to Mercer, developing a “journey plan” that outlines the strategic policy choices to move a plan to its ultimate destination is a step many plan sponsors have undertaken.

As cases against MetLife, Pepsi and American Airlines have been filed, Groom Law Group questions whether these cases may present a new area of potential legal exposure.

The agency has included revised instructions regarding disaster relief to reflect recent changes made to PBGC’s practice.

The table is needed to compute the value of early retirement benefits and, thus, the total value of benefits under a plan.

An increase in liability values was offset by an increase in asset values.

Willis Towers Watson offers investment considerations for sponsors of defined benefit plans.

A new Accounting Standards Board Standard of Practice requires actuaries to identify risks that, in the actuary’s professional judgment, may reasonably be anticipated to significantly affect the defined benefit plan’s future financial condition.

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.