PLANSPONSOR Weekend Newsdash
Week ending August 25th, 2017
Happy Friday, PLANSPONSOR readers! This week our editor’s choice articles focus on defined benefit pension plans. Strong returns for the second quarter of 2017 gave public pensions a slight uptick in funding status, according to Milliman. An NIRS study found that given the option, public sector employees overwhelmingly prefer a DB plan over a defined contribution one. The IRS released amendments for bifurcated DB distribution, and we highlight cost concerns regarding pension risk transfer and freezing a DB plan. All this and more in this edition of PLANSPONSOR Weekend!
Editor's choice
Data And Research
Public Pension Plan Funded Status Slowly Improves
As of the end of the second quarter of 2017, four more of the 100 biggest public pension plans crossed the 90% funded status mark. Read more >
Data And Research
Given a Choice, Public Sector Employees Choose DB Over DC
Among the eight states studied that offer employees such a choice, the take-up rate of DB plans was 80% or higher in six of those states. Read more >
IRS Issues Amendments for Bifurcated DB Distribution
The amendment suggests language a defined benefit sponsor might want to use. Read more >
Cost Concerns Driving Pension Risk Transfer Decisions
Even the plan sponsors that have not implemented a pension risk transfer say costs from changing mortality assumptions and rising PBGC premiums would make them more likely to do so. Read more >
Cost Considerations When Freezing Your DB Plan
Just because a plan is frozen, doesn’t mean fees will go away altogether. Read more >
Adidas Sued Over Excessive Fees for 401(k) Participants

Plaintiffs in the lawsuit argue that passive funds would have resulted in better returns net of fees that the actively managed funds offered in the plan.

(b)lines Ask the Experts – Proper Delivery Method for SPDs
Experts from Groom Law Group and Cammack Retirement Group answer questions concerning 403(b) plans and regulations.
Yale Sued Over Wellness Program ‘Penalty’

The lawsuit says the so-called “incentive” Yale offers for participating in the wellness program are in fact a “penalty” that violates non-participants’ right, and it notes that the Equal Employment Opportunity Commission (EEOC) withdrew the incentive portions of its wellness program rules.

Employees in Two States Miss Out on One HSA Benefit
Is this impacting health savings account (HSA) participation?
Some Help for Women’s Retirement Savings Gap May Be Coming

Some legislative proposals, such as the SECURE Act, may address challenges to retirement income adequacy women face, but there are also things retirement plan sponsors can do.

Editorial: Alison Cooke Mintzer

Advertising: Paul Zampitella

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