PLANSPONSOR Weekend Newsdash
Week ending December 22nd, 2017

Happy Friday, PLANSPONSOR readers! This week, we’ll center on defined benefit (DB) plans. First up, with 2017 coming to a close, brush up on provider options with our Defined Benefit Administration Survey, published in the April/May edition of PLANSPONSOR. Then, read up on the recently updated mortality tables from the Internal Revenue Service (IRS), applied for calendar year 2019. Nextif you’ve wondered why liability-driven investment (LDI) strategies are steadily popping up in pension plans, a new survey from Cerulli Associates can answer your question. Eighty-one percent of survey respondents indicated the top factor driving the appeal of LDI. In a different survey, Cerulli explores how economic, social and governance investing (ESG) is paving their way towards the defined benefit spectrum, and NCPERS research covers why policymakers should avoid diminishing public pensions. All this and more on this week’s edition of PLANSPONSOR Weekend. Have a great weekend, and a wonderful holiday to those celebrating!

Defined Benefit Administration Survey
Although published earlier this year, the end of the year can present a good opportunity to review provider options. Read more >
IRS Issues Mortality Tables to Be Used for DB Plans in 2019
The updated mortality improvement rates and static tables apply for purposes of calculating the funding target and other items for valuation dates occurring during calendar year 2019. Read more >
More DB Plans Using LDI Strategies
Eighty-one percent of pension plan professionals say funded status volatility is their top motivating factor for pursuing an LDI strategy. Read more >
DB Plans, Retail Investors Expected to Embrace ESG
Cerulli even expects environmental, social and governance investing to become “the baseline of how portfolios are constructed.” Read more >
Data and Research
Public Pensions Have Been Able to Pay Promised Benefits
New research shows that funding status has little correlation with a pension fund’s ability to pay its promised benefits, and NCPERS urges policymakers to stop trying to shut down public pensions. Read more >
AT&T Sued Over Calculation of Early Retirement Benefits

The plaintiffs say the plan’s terms reduce benefits using “Early Retirement Factors” and “Joint and Survivor Annuity Factors” which result in plan participants receiving less than the actuarial equivalent of their vested accrued benefit, as required by ERISA.

Congressional Leaders Want SECURE Act Passage in 2019

Based on the conversations industry advocates are having in Washington, none of the leadership in the Senate or the House opposes passage of the SECURE Act.

Social Security Administration Announced COLA for 2020

Employees not only need basic education, but they need to know how to include Social Security in their retirement income strategy.

New Lawsuit Highlights Importance of Cybersecurity for Retirement Plans

A former 401(k) plan participant is suing the plan sponsor and plan providers after unauthorized distributions were made from her account.

IRS Releases 2019-2020 Priority Guidance Plan

The IRS invites public comments and suggestions about guidance.

Editorial: Alison Cooke Mintzer


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