PLANSPONSOR Weekend Newsdash
Week ending July 28th, 2017
Hello, PLANSPONSOR readers! This week we focus on defined benefit (DB) plans. There’s some positive news for both private-sector single-employer DB plans and multiemployer plans. However, NCPERS argues public pension reforms could hurt the economy. The American Academy of Actuaries explains the uses of multiple measurements for DB plan funding, and one study makes a case for long-horizon investing for DB plans. All this in addition to readers’ most popular articles are in this edition of PLANSPONSOR Weekend.
Editor's choice
Data and Research
SOA Review Shows Positive Funding Picture for DB Plans
Using the smoothed assets as allowed and smoothed bond rates require by current law to discount the liability, the 2014 total funding target liability for single-employer DB plans of $1.9 trillion was 98% funded, the Society of Actuaries (SOA) found. Read more >
Multiemployer Plans Have Hope and a Future
We’ve all seen the headlines: The Pension Benefit Guaranty Corporation (PBGC) multiemployer plan program is running out of money because it is helping so many plans, and a number of multiemployer plans have asked the Treasury for permission to reduce benefits under the Multiemployer Pension Reform Act (MPRA). But, according to Zane Dalal, executive vice president of Benefit Programs Administration (BPA), who is based in Los Angeles, the industry needs to take a balanced view. Read more >
Continuing Public Pension Reforms Could Hurt the Economy
A report from the National Conference on Public Employee Retirement Systems (NCPERS) suggests that if public pension plan reforms continue, it will result in economic losses. The conference contends that lawmakers do not understand how public pensions work. Read more >
There Is No Single 'Right' Measurement for DB Plan Funding
The purpose of the measurement determines which number is “right,” according to the American Academy of Actuaries. Read more >
The Case for Long-Horizon Investing in DB Plans
Long-horizon investing can generate up to a 1.5% premium on returns, according to a Willis Towers Watson study that modeled pension plan investment practices. 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.

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.

DC Plans 3.0 Will Really be Tailored to Individual Situations

Bob Collie, head of research at the Thinking Ahead Institute, tells PLANSPONSOR version 3.0 will be customized by “hyper-customization and integrated whole-of-life wealth management” that takes into account all of a person’s savings.

Editorial: Alison Cooke Mintzer


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