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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 Actions to Comply With SECURE Act Should Already Be Underway Though more guidance is expected for certain provisions of the SECURE Act, there are some that are urgent for plan sponsors to address. Compliance IRS Announces 2020 Contribution and Benefit Limits The contribution limit for employees who participate in 401(k), 403(b) and most 457 plans is increased from $19,000 to $19,500. Administration Components of Annuity Pricing The costs of annuities depends on the type and the amount of flexibility. Data and Research DC Plans Moving to Become Decumulation Vehicles More plan sponsors have a policy for retaining the assets of terminated and retired participants and more are offering decumlation strategies. Administration Retirement Plan Features to Consider Pruning Some features make administration unnecessarily difficult, while others could derail participants’ retirement readiness. Did someone forward you this newsletter? Sign up here to get PLANSPONSOR Weekend directly in your mailbox!

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