Because of shared and predictable expenses, they also offer greater benefits than defined contribution plans, the National Institute on Retirement Security says.
Tag: Defined benefit
It is clear which countries lead the way in providing sustainable retirement systems with adequate benefits—and what others can learn from them to improve.
With life expectancies declining slightly, pension plan obligations are reduced between 0.7% and 1.0%, the Society of Actuaries says.
Nominating a plan sponsor client is a great way to show appreciation and highlight important best practices that are improving outcomes for defined contribution and pension plan participants. Nominations for all types of retirement plans will be considered, so don’t delay.
The agency announced a pilot program that will offer mediation in certain Termination Liability Collection and Early Warning Program cases.
The case is among a number filed that challenge the “church plan” status of a health care entity’s retirement plan.
Three documents set forth mortality tables to be used by certain DB plans in actuarial assumptions and the procedures to request the use of plan-specific mortality tables instead.
A research paper examines three levers that DB plan sponsors can use to enhance portfolio outcomes in a low-interest-rate environment.
The technical update specifically addresses active participant reduction event requirements.
The agency is also proposing that plan sponsors be offered a pre-filing consultation.
The Prudential Insurance Company of America has agreed to provide a group annuity contract and take on approximately $1.3 billion in pension liabilities from International Paper, focusing on vested employees with smaller monthly benefits.
However, Rick Jones, with Aon, says, “Pension risk transfer is a trillion dollar market, and much more will be settled in coming year."
DB plan sponsors have until January 31, 2018, to comply with certain reporting and payment deadlines.
With the determination letter program gone, Wagner Law Group is helping plan sponsors remain compliant with the IRS.
The agency says the additional information would help it with projections regarding its insurance programs.
In addition, advisers can use the PensionSmart Analysis tool for prospecting DB plan clients.
DB plan sponsors are accelerating funding of their plans and adopting more de-risking strategies, a survey finds.
Loan and hardship rules, in addition to reporting requirements, have been relaxed.
Fifteen percent say recommendations from their consultant or independent fiduciary is an important consideration when selecting an annuity provider.
For two types of DB plans, investment-driven liabilities (IDL) is almost risk free for plan sponsors, and at the same time, provides more meaningful benefits to participants, John Lowell, with October Three, contends.