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PLANSPONSOR BLINESs LOGO
week ending March 13th, 2020
Contrary to what media reports may have us think, many defined benefit (DB) plan sponsors remain committed to maintaining their plans. Plan sponsors may have a perception that the cost and burden of maintaining their plans is too much, but DB plan administration requires fewer touchpoints than defined contribution (DC) plan administration, and sources argue that the cost to offload a pension is greater than the cost to maintain it. A survey of PLANSPONSOR NEWSDash readers found the vast majority think DB plans are the best source for guaranteed income in retirement. Some plan sponsors have turned to cash balance plans to satisfy the desire for DB plan income. The Pension Protection Act offered a way to convert to one without repercussions, and a cash balance plan design exists to ease asset/liability matching. The edition of PLANSPONSOR Weekend will offer a new way of looking at DB plans.
Editor's Choice
Administration
What to Know About DB Plan Administration
Plan sponsors should understand the components of administration, the interplay of providers and on what duties sources say sponsors are falling behind.
Administration
Is DB Plan Annuitization More Costly Than Maintaining the Plan?
SEI contends most companies can handle maintaining a DB plan for less than the cost of offloading it, but there are individual factors to consider.
Reader Responses
SURVEY SAYS: Do You Have Guaranteed Retirement Income?
NEWSDash readers share what source of guaranteed income in retirement they think is best.
Data and Research
Cash Balance Plans Particularly Appealing to Small Businesses
Kravitz research found that 92% of cash balance plans are in firms with fewer than 100 employees.
Compliance
PPA Reduced Lawsuits Against Cash Balance Plans
It also provided guidance about how to convert a traditional pension to a cash balance plan.
Opinions
Solving the Cash Balance Investment Problem
John Lowell, with October Three Consulting, discusses how a market-based cash balance plan design provides for a less complicated way to hedge liabilities.
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.
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.
2020 Recordkeeping Survey
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