The IRS extended the period to adopt an approved plan document to April 30, 2020, from January 31, 2019.
Tag: defined benefit plans
The amendments to regulations on guaranteed benefits and asset allocation would incorporate statutory changes to the rules for participants with certain ownership interests in a plan sponsor.
“We expect others in the industry will take similar actions,” says Justin Owens, director, Client Strategy & Research, Russell Investments.
According to the researchers, sector diversification and yield curve positioning can help investors during rising-rate periods.
“It is important for actuaries for all types of pension plans, including those who work with multiemployer and public-sector plans, not to reverse expectations for mortality improvement in response to the latest data,”says Eli Greenblum, chief actuary for The Segal Group.
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.
According to Willis Towers Watson’s Thinking Ahead Institute’s 2018 Global Pension Assets Study, the institute sees shifts in investment models for retirement plans across the globe.
Mercer suggests key priorities for DB plan sponsors for 2018.
More than one-quarter of organizations have or are planning or considering increasing 401(k) contributions, Willis Towers Watson finds.
However, the agency says it is uncommon for it to assess information penalties.
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.
DB plan sponsor clients may want to consider a strategy to reduce PBGC variable-rate premiums.
A final rule opens the current program to terminated DC plans and small professional service defined benefit plans.
The new table is for single-employer pension plans undergoing distress or involuntary termination with valuation dates falling in 2018.
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.
Cerulli posits that LDI, when implemented effectively, can be “the ultimate custom solution.”
According to Cambridge Associates, DB plan fiduciaries should coordinate across four “levers” that can help improve funded status and mitigate negative impacts of under-funding on corporate financials.