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| Court Rejects Use of Post-Termination Plan Amendment | |
| The 6th U.S. Circuit Court of Appeals agreed with a lower court that the Pension Benefit Guaranty Corporation (PBGC) did not err when it found that Kentucky Bancshares failed to pay all benefits due to employees under its pension plan when the plan was terminated. In 2008, as it was preparing to terminate its pension plan, Kentucky Bancshares also began implementing changes to meet the requirements of the Pension Protection Act of 2006 (PPA). The changes generally lowered the lump-sum benefits for participants. The court found that nothing in the PPA or the Internal Revenue Code made it necessary for Kentucky Bancshares to amend the plan in a way that caused a decrease in the value of benefits.Read more > | |
| From the Magazine | |
| Running the Fund: TDF Pandemonium | |
| Most likely many of your participants use target-date funds (TDFs), but how many of these people are invested sub-optimally? Where target-date funds or target-risk funds are available in plans, 65.8% of participants have money in one of these options. Both types are meant to be all-in-one investments where participants put their account’s entire balance. But of that nearly 66%, only 51.5% are wholly invested in such a fund, according to Aon Hewitt’s “2014 Universe Benchmarks” study. The rest have invested only partially, and the resulting diversification issues may cause problems for them in the future. Sponsors who want to steer participants toward fully investing in a target-date fund face a choice.Read more > | |
| Small Talk | |
ON THIS DATE: In 1785, the Georgia General Assembly incorporated the University of Georgia, the first state-funded institution of higher learning in the new republic. In 1870, Kappa Alpha Theta, the first women’s sorority, was founded at Indiana Asbury University (now DePauw University) in Greencastle, Indiana. In 1880, Thomas Edison patented the electric incandescent lamp. In 1888, the National Geographic Society was founded in Washington, D.C., for “the increase and diffusion of geographical knowledge.” In 1948, Wire Recording Corporation of America announced the first magnetic tape recorder. The ‘Wireway’ machine with a built-in oscillator sold for $149.50. In 1973, the United States, South Vietnam, Viet Cong, and North Vietnam formally signed “An Agreement Ending the War and Restoring Peace in Vietnam” in Paris. In 2010, J.D. Salinger, author of “The Catcher in the Rye,” the classic American novel about a disillusioned teenager, died of natural causes at age 91 at his home in Cornish, New Hampshire.
TUESDAY TRIVIA: A group of squirrels is called a dray or scurry. | |
| TRIVIAL PURSUITS: What is the origin of the question mark?Read more > | |
| Share the good news with a friend! Pass the Dash along – and tell your friends/associates they can sign up for their own copy.Read more > | |
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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com
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