Hello, PLANSPONSOR readers! Pension Benefit Guaranty Corporation Premiums (PBGC) are a growing cost for defined benefit (DB) plans. Sources from October Three say most DB plan sponsors are overpaying premiums and they offer a solution for plan sponsors and options especially for those in the health care industry. In Part II of a series, Michael Kreps and Mark Carolan of Groom Law Group discuss funding waivers and in-kind contributions as options for unaffordable pensions. Vanguard advocates for a global bond strategy to improve DB plan returns. Enjoy the holiday weekend!
John Lowell, Atlanta-based partner and actuary for October Three, shares solutions for health care organizations to possibly decrease their PBGC premium payments.Read more >
It is not uncommon for employers to face cash flow challenges that make it difficult, if not impossible, to fund their defined benefit (DB) plan in a timely way. In this second part of a series on unaffordable pensions, attorneys with Groom Law Group provide an overview of two options—funding waivers and in-kind contributions—that can alleviate the immediate need to use operating cash to make minimum required contributions.Read more >
A global bond allocation hedged for currency risk can result in greater risk-adjusted returns than an allocation to local-only bonds, a report says.Read more >
The 6th Circuit noted that Firestone Tire & Rubber Co. v. Bruch, in which an arbitrary-and-capricious standard of review is required by the court if the plan “gives the administrator or fiduciary discretionary authority to determine eligibility for benefits or to construe the terms of the plan,” should have been used by the district court.Read more >
Syed Nishat, with Wall Street Alliance Group, discusses potential effects on retirement plans if President Joe Biden is able to move forward his legislative agenda.
The lawsuit says the target-date funds were selected for the plan despite having no performance history and, when they continued to underperform, they were not replaced with better options.
The lawsuit claims the trustee allowed an unauthorized person to take a distribution from a participant’s account and that the trustee is refusing to provide information to help remedy the situation.
The Center for Retirement Research says half of American households are at risk of not being able to live at pre-retirement standards of living in retirement.
