Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
March 12th, 2015
Benefits & Administration
Failing Multiemployer Plans Face More Reduced Benefits
A Pension Benefit Guaranty Corporation (PBGC) study finds that more than half of the people in terminated multiemployer plans that run out of money in the near future face a reduction in benefits under current PBGC guarantees. This compares to 20% of workers and retirees who saw reduced benefits under plans that have already run out of money and are relying on PBGC financial assistance. The study, PBGC’s Multiemployer Guarantee, also looks at the depth of benefit reductions.Read more >
Objectives Met by DC Health Benefit Arrangements
Employers should understand whether a defined contribution (DC) health benefit arrangement will help them achieve their goals. In an article from Towers Watson, Randall K. Abbott, leader and senior strategist, Health and Group Benefits, North America, contends four factors have converged to bring the DC approach to the forefront: growth of the private exchange model for the delivery of health benefits; employers’ ongoing concern as health benefit costs continue to rise; the idea of de-risking health benefits; and the 2018 excise tax on high-cost health plans. But, some employers may be considering a defined contribution health benefit arrangement for the wrong reasons.Read more >
Products, Deals & People
To help plan sponsors with fiduciary duties and day-to-day administrative tasks, BB&T Retirement and Institutional Services has created 3(16) Alliance Services.Read more >
DuPont Capital Management hired William Smith, Jr., as principal, business development, and Paul Leahy as head of relationship management. Smith takes on responsibility for direct marketing and sales to institutional retirement plans and consultants. Leahy will be focused on developing and maintaining DuPont Capital’s relationships with institutional clients and consultants.Read more >