PLANSPONSOR Weekend Newsdash
Week ending May 25th, 2018

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!

Editor's choice
Administration
Reducing PBGC Premiums by Splitting Up a DB Plan
The idea is to put participants with lesser unfunded vested benefits (UVBs) in one plan, and those with greater UVBs in another. Read more >
Industry Voices
Hospitals Burdened By PBGC Premiums Have Solutions Available
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 >
Administration
Options for Unaffordable Pensions: Funding Waivers and In-Kind Contributions
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 >
Investing
Vanguard Researchers Urge Investors to Go Global With Bond Allocations
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 >
Compliance
Plan Sponsor Interpretation Must Be Given Deference in Lawsuits Challenging Plan Terms
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 >
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HSA Savings for Seniors Who Want to Work Longer

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J.P. Morgan Agrees to Settle Stable Value Funds Suit

The firm has agreed to pay $75 million to settle litigation brought by multiple retirement plan participants alleging J.P. Morgan invested its stable value funds in risky assets.

Congress Urged to Act Soon on Union Pension Funding Crisis

Members of the Senate Finance Committee voiced frustration that lawmakers have not yet come to a solution to the multiemployer union pension funding crisis.

Communicating Retirement Benefits to Five Generations of Workers

The University of Pittsburgh has found stories from peers resonate well with every employee group.

2019 PLANSPONSOR National Conference

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

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

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