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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
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.
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.
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.
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.
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
Ask the Experts
Satisfying Electronic Disclosure Requirements for SPDs to New Hires
Experts from Groom Law Group and CAPTRUST answer questions concerning retirement plan administration and regulations.
IRS Announces 2022 Retirement Plan Contribution and Benefit Limits
Most defined contribution plan participants can defer up to $20,500 to plans in 2022.
Federal Student Loan Forbearance Is Ending, but Many Employees Aren’t Prepared
Experts say employers have an opportunity to help with the financial burdens their workers face as they prepare to start paying their debt off again.
2021 DC Plan Benchmarking Survey
Data and Research
Older Generations More Frequently Seeking Financial Wellness Help
Research shows people of all ages are increasingly turning to financial planners and advisers for help with overall financial wellness as well as retirement planning.
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