PLANSPONSOR Weekend Newsdash
Week ending March 23rd, 2018

Happy Friday, PLANSPONSOR readers! This week we focus on defined benefit (DB) plans. The Internal Revenue Service (IRS) has made a couple of announcements regarding DB plans, and a proposed bill in West Virginia would make it a criminal offense not to make contributions to public pension plans. Speaking of DB plan contributions, a study finds the largest corporate DB plans are leading the way in accelerating pension funding. With the stock market dives in February, DB plans’ funded status was tempered by higher liability discount rates. And, more than half of institutional investors have increased their allocations to focused investment strategies. Enjoy this edition of PLANSPONSOR Weekend!

Editor's choice
Compliance
IRS Reduces Fee for Terminating Plan Determination Letter
Plan sponsors who have already submitted an Application for Determination for Terminating Plan in 2018 will receive a refund of $700. Read more >
Compliance
IRS Extends Remedial Amendment Cycle for Pre-Approved DB Plans
A plan sponsor using pre-approved plan documents to restate a plan for the plan qualification requirements included on the 2012 Cumulative List will be required to adopt the plan document by April 30, 2020. Read more >
Compliance
W. Va. Bill Would Criminalize Failure to Make Public Pension System Contributions
Under the proposed legislation, any employer or public official who willfully fails to make contributions to public pension plans can face a sentence as low as a $100 fine or as high as 10 years in prison. Read more >
Administration
Largest DB Plans Lead in Accelerating Pension Funding
Following a pattern as trendsetters, the 20 members of the $20 billion club collectively dismissed funding relief and paid more than triple their mandated contributions in 2017, according to Russell Investments. Read more >
Administration
Increase in Discount Rates Tempered DB Funded Status Losses in February
Institutions that track defined benefit (DB) plans’ funded ratios measured increases or decreases in funded status as high as 1%, but noted it could have been worse if not offset by higher liability discount rates. Read more >
Investments
Institutional Investors See Chance for Alpha in Focused Strategies
In the past 12 to 18 months, 56% of institutional investors have increased their exposure to focused strategies, defined as 50 or fewer holdings, a survey finds. Read more >
MOST POPULAR STORIES
The Senate Math That Could Block SECURE Act
Senate floor time is at a premium ahead of the 2020 presidential election—so much so that even legislation that passed the House with a near-unanimous bipartisan vote is not guaranteed to become law.
House Committee Advances Bill to Establish Union Pension Lifeline Program

The legislation aims to establish a 30-year loan program and new financial assistance for financially troubled multiemployer pension plans.

Open MEPs Not for Every Plan Sponsor
If legislation passes to allow for open multiple employer plans (MEPs) for plan sponsors without a common nexus, experts believe they will offer benefits to plan sponsors, but there would be some considerations to explore before joining one.
Driving Financial Wellness at Work
Wes Collins, senior manager of participant advice services at CAPTRUST, discusses financial wellness areas of focus, broken out by career stage.
Adidas Sued Over Excessive Fees for 401(k) Participants

Plaintiffs in the lawsuit argue that passive funds would have resulted in better returns net of fees that the actively managed funds offered in the plan.

Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

Advertising: Paul Zampitella paul.zampitella@strategic-i.com

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