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 >
Plan sponsors will be required to provide much more data, as well as certifications about plan administration and governance, and limited-scope audits will no longer be so limited.
The agency says the proposal seeks to emphasize that climate change and other ESG factors can be financially material and that considering these elements can lead to better long-term risk-adjusted returns.
