Hello, PLANSPONSOR readers! In this week’s roundup, we focus on defined benefit (DB) plans. While the most recent market volatility caught many investors off guard, a survey finds institutional investors have been anticipating it and diversifying portfolios accordingly. LPL researchers offer suggestions for managing interest rate risks, and the Segal Group warns pension plan sponsors to not be fooled about headlines regarding mortality. A court of appeals affirmed that state slayer laws apply to pension benefits when the beneficiary is the person who caused a plan participant to die. And, a bill proposed in California would allow state workers to opt out of the state’s DB plan into a defined contribution (DC) plan. Enjoy this edition of PLANSPONSOR Weekend!
Although the latest report from the National Center for Health Statistics (NCHS) show life expectancy at birth declined, mortality rates for the older population continue to support projections of longer life expectancy, The Segal Group notes.Read more >
Citing other courts, an appellate court agreed that “Congress could not have intended [the Employee Retirement Income Security Act] ERISA to allow one spouse to recover benefits after intentionally killing the other spouse.”Read more >
California State Senator Steve Glazer, who serves the state’s 7th senate district, introduced a bill earlier this month to allow new state employees the option of opting out of pension plan benefits and instead choose a “self-directed and portable retirement plan.”Read more >
The defendant in the case, CommonSpirit Health, was accused of committing fiduciary breaches in the provision of an active target-date fund suit—allegations rejected both in district court and on appeal.