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| Benefits & Administration |
| A year-end analysis from BNY Mellon Investment
Strategy and Solutions Group (ISSG) finds corporate pension plans, public
plans, foundations and endowments all finished 2014 on a weak note. ISSG says
the funded status of the typical U.S. corporate pension plan fell 2.6% to 87.3%
in December, as assets fell and liabilities increased. Read more > |
| Employers Reconsidering Pre-65 Retiree Health Benefits |
| More than half of employers surveyed by Towers Watson that provide health care to pre-65 retirees are planning significant changes to their medical benefits and how those benefits are delivered over the next two years. The Towers Watson 2014 Survey on Retiree Health Care Strategies reveals that employers are seeking new solutions due to annual cost increases that are outpacing those of benefits for active employees and Medicare retirees, as well as the availability of new individual coverage options under the Patient Protection and Affordable Care Act (ACA). Cost trends for Medicare-eligible retirees after plan changes (3.9%) are similar to trends for active employees (4.0%). However, survey results show that trends for pre-65 retirees after plan changes are much higher (5.5%).Read more > |
| The estimated aggregate funding level of pension plans sponsored by S&P 1500 companies dipped, from 88% as of December 31, 2013, to 79% as of December 31, 2014. Decreases in interest rates used to calculate corporate pension plan liabilities, combined with an increase in liability to reflect improved longevity, overpowered increases in equity and fixed-income markets, lowering funded status to 79%.Read more > |
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| Sponsored message from New York Life |
| PLANSPONSOR interviews Colette Sagar of New York Life Retirement Plan Services. Read more > |
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| Ask the Experts |
| Ask the Experts – 457 Plan Transfers |
| “I work at a private university, and we recently had
an employee who had a 403(b) and 457(b) plan account with us leave for another
private university. He wants to move all of his funds to his new university
plans. We have no issues with the 403(b) plan, but are having difficulty
accommodating his request for the 457(b) plan since rollovers are not permitted
from that plan. Is there any other way to accommodate his request?” Read more > |
