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week ending November 13th, 2020 Defined benefit (DB) plan sponsors can expect more market volatility, affecting their funded status. That’s why it is important for them to reassess their investment strategies for 2021. As DB plan sponsors also implement strategies to manage costs, an American Academy of Actuaries report says the way Pension Benefit Guaranty Corporation (PBGC) premiums are set and counted in the budget discourages the offering and maintenance of DB plans. Prior to the election, the Trump administration ordered a review of the situation for retirees of auto parts maker Delphi, whose pension was transferred to the PBGC. It remains to be seen if something will result from that in this or the next administration. This edition of PLANSPOSNOR Weekend focuses on DB plan administration. Editor's Choice Administration Continued Volatility Signals Poor Year for DB Plan Funded Status Higher contributions can be expected in the future and asset allocation makes a difference, according to firms that track defined benefit plan funded status. Investing Defined Benefit Plan Sponsors Should Reassess Their Investments Willis Towers Watson offers 10 suggestions for DB plans for 2021. Compliance PBGC Premiums Getting in the Way of Its Mission Letting the agency set its own premiums and basing them more on risk would encourage the offering and maintenance of pension plan, the Academy of Actuaries says. Compliance Trump Administration to Look at Pensions Transferred to PBGC A memorandum issued by the president first orders three departments to review the situation for Delphi retirees, then orders a review of pensions currently trusteed by the PBGC. Data and Research PBGC Reports Effect of Pension Risk Transfers on Its Premium Income The agency could see a premium income loss of $196 million for the 2019 premium payment year, but certain trade-offs make it hard to tell if the PBGC’s future net financial position will be strengthened or weakened. Popular Reads Participants What Participants Want From Employers’ Retirement Plan Websites A recent study found 81% of participants have logged into their accounts, with most signing in to check account balances or review investment options. Research 2021 Recordkeeping Survey Inside Angle DOL’s Next Moves What’s in store for the rest of the year? Ask the Experts Allowing for After-Tax Contributions in a 401(a) Plan Experts from Groom Law Group and CAPTRUST answer questions concerning retirement plan administration and regulations. Deals and People Retirement Industry People Moves Northern Trust announces hiring of new CIO; Morgan Stanley partners with Empower; and IRIC appoints executive director. Did someone forward you this newsletter? Sign up here to get PLANSPONSOR Weekend directly in your mailbox!

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