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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 Cybersecurity Risks Still Lurking for Retirement Plan Sponsors A recent federal court decision does not let plan sponsors off the hook, and various state laws may be applied to cases against them. Administration Rules for Retaining Benefit Plan Records Electronic filing is popular, but benefit plan sponsors need to know the rules about what documents can be stored digitally and how. Benefits Employers Increasingly Interested in ICHRAs as a Health Benefit Offering This new benefit option allows employers to keep their costs fixed by giving employees the opportunity to manage their own health care benefit choices, says Willis Towers Watson. Administration The Difference Between Fee-Based and Fee-Only Advisers It’s important to know how advisers get paid, as well as whether those sources of income could cause a problem for retirement plan sponsors or participants. Compliance House Committee Introduces ‘Securing a Strong Retirement Act of 2020’ The legislation proposes expanding automatic enrollment in retirement plans, and expanding retirement savings options for nonprofit employees, among other things. Did someone forward you this newsletter? Sign up here to get PLANSPONSOR Weekend directly in your mailbox!

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