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week ending August 14th, 2020 Despite the bounce back of the markets since March, interest rates are keeping defined benefit (DB) plan funded status down. The magnitude of funded status decreases depends on plans’ portfolio strategies and plan sponsors should consider new strategies to manage the ongoing volatility of the market. At a time when their businesses could be struggling financially as well, plan sponsors need guidance on how to cut costs. Portfolio and cost-cutting strategies need to be considered even if a plan is frozen. This edition of PLANSPONSOR Weekend contains information to help DB plan sponsors with plan management. Have a great weekend! Editor's Choice Administration Lower Interest Rates Foil Market Rally Impact on DB Plan Funded Status Firms that monitor DB plan funded status say it is uncertain whether Congress will offer additional funding relief; many plans will likely face lower funded status in 2020. DB Focus Same but Different Lessons on past market breaks, from seasoned bond investors. Administration How DB Plans Fare During Volatility Depends Greatly on Portfolio Allocation Depending on asset allocation, some plans have fared better than others, but the majority are down for the year. Investing Rethinking Portfolio Strategies for DB Plans What strategies should plan sponsors consider for reaching their goals in the new market environment? DB Focus Blight Resistant Private equity is a bright spot for investors at this time. Administration Forty Percent of DB Plans Could Adopt Strategies to Lower PBGC Premiums Strategies regarding timing and recording of pension contributions translate to millions of dollars in lower PBGC premiums, according to a report from October Three. Administration Frozen DB Plans Still Require Much Attention There is nearly as much work to do when a DB plan is frozen as when it’s open, and ignoring it could come at great cost. Popular Reads Compliance Claims Over Fidelity’s Use of Participant Data Dismissed A federal judge determined participant data is not considered plan assets, meaning Fidelity was not a fiduciary with regard to the claims. Data and Research Near-Retirees Flummoxed by Social Security Benefits Respondents to a survey by MassMutual revealed certain topics they have questions about. Investing In the Future, the Bias Will Likely Be for Annuities For now, sources say there needs to be more education and a change of thought to help 401(k) plan sponsors and participants accept the income-generation value of annuities. 2020 Recordkeeping Survey 2021 Virtual HSA Conference April 13 - 14, 2021 | Virtual Conference Did someone forward you this newsletter? Sign up here to get PLANSPONSOR Weekend directly in your mailbox!

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