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.
Amendments in the update are effective for fiscal years ending after December 15, 2020, for public business entities and for fiscal years ending after December 15, 2021, for all other entities.
The agency says the additional information is needed to help it determine a defined benefit (DB) plan sponsor’s ability to continue to maintain its DB plan.
DB plan sponsors are using a variety of strategies to manage increasing PBGC premiums, including accelerating funding and implementing pension risk transfer strategies.
MassMutual has issued a white paper outlining all considerations for defined benefit plan sponsors considering a pension risk transfer.
The 6th Circuit said a district court rejected case law when it reasoned that the cases relied on by the Pension Benefit Guaranty Corporation (PBGC) arose under the Multiemployer Pension Plan Amendment Act (MPPAA) and did not address single-employer plans.
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.
The case has already bounced back and forth several times between the district and appellate courts, testing complicated questions about conflicting language in summary plan descriptions and formal plan documents.
The company will offer a lump-sum distribution window to certain participants and transfer certain retiree assets to a group annuity.
Vanguard research questions whether the risk-matching precision of SMAs is worth the cost and complexity.
Companies that estimate funded status for defined benefit (DB) plans say this is due to equity returns, as interest rates remained relatively flat.
Second quarter rebounded slightly from last quarter, which posted negative median returns for all plans for the first time in nearly three years, according to Wilshire TUCS.
Northern Trust Asset Management offers four considerations for setting DB plan investment strategy.
Mercer suggests pension sponsors should now focus on the shakeout that lies ahead, with the potential bifurcation between liabilities sold to insurers and the hard stuff kept on pension balance sheets, by using hibernation investing.
The legislation helps protect defendants who settle lawsuits from claims from co-defendants.
According to the compliant, the defined benefit (DB) plan was required to adhere to Employee Retirement Income Security Act (ERISA) funding rules.
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.
The reduction in corporate taxes from 35% last year to 21% starting this year incentivized companies to accelerate tax deductions.