view in browser | plansponsor.com

week ending December 20th, 2019 While 401(k)s had their share of news throughout 2019, defined benefit (DB) plans saw some changes as well. A recent EPI report found DB plans can offer more equality than 401(k)s. Additionally, the PBGC published a final rule on pension plans undergoing distress or involuntary termination, while the OSFI released a form for contribution schedule reporting. Also, DB plan experts argued why cash flow needs are greater now than ever; River and Mercantile published its Monthly Retirement Update for December; and we learned what DB plans can learn from insurance companies. All this and more, on this edition of PLANSPONSOR Weekend. Editor's Choice Data and Research Could New DB Plan Designs Solve for Retirement Savings Inadequacy and Inequality? Recent studies find 401(k)s have increased retirement savings gaps among demographic groups, and those in 401(k)s have not met their savings potential, while DB plans offer more equality. Compliance Officials Issue New Items for DB Plan Sponsors The PBGC has issued a final rule regarding pension plans undergoing distress or involuntary termination, and the OSFI has released a form for contribution schedule reporting. Administration DB Plan Cash Flow Needs Are Greater Than Ever In these days of low interest rates, and following money market reform, investing strategies are needed to meet cash-flow needs from retiring Baby Boomers and pension risk transfer actions. Administration DB Funded Status Held Up Fairly Well, Considering… Though down for the year, DB plan sponsors have seen upticks in funded status for three straight months, and sources make suggestions for continuing to hold on. Investing What DB Plans Can Learn From Insurance Companies Insurance companies take on pension risk, so why wouldn’t DB plan sponsors take lessons from insurer’s investment strategies? Popular Reads Compliance DOL ESG Proposal Throws a Cloud Over Prior Guidance The proposed regulation seems to create stricter limits for ESG investing in retirement plans, but experts say it is not all doom and gloom for plan sponsors and participants who want these investments. Compliance Use of Fidelity Active Management Funds Questioned in Court Multiple lawsuits have been filed recently that question the offering of active management funds to retirement plan participants. Compliance Lawsuit Says Plan Fiduciaries Should Have Chosen Less Expensive CITs Though the majority of investment options for Estee Lauder’s 401(k) are CITs, the lawsuit argues the TDFs are more expensive private label CITs. Data and Research No Massive Pullback From Retirement Savings Seen Yet Research finds few retirement savers have lowered savings rates or withdrawn money; however, those with lower incomes and in certain industries may be disproportionately affected. Opinions COVID-19 Compliance Corner: IRS Expands CRD Eligibility and Clarifies Loan Rules Each week, Carol Buckmann, with Cohen & Buckmann P.C., will explain legislative provisions or official guidance related to the COVID-19 pandemic that affect retirement and health plan sponsors. Did someone forward you this newsletter? Sign up here to get PLANSPONSOR Weekend directly in your mailbox!

Unsubscribe | Manage Subscriptions | Contact Us | Privacy Policy | Advertise

©2020 Asset International Inc. All rights reserved. 702 King Farm Boulevard, Suite 400, Rockville, MD 20850