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.
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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.
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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.
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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.
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Frustration continues for working individuals 65 and older who are required to stop HSA contributions once enrolled in Medicare, but legislation is pending to fix that.
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.
Members of the Senate Finance Committee voiced frustration that lawmakers have not yet come to a solution to the multiemployer union pension funding crisis.
