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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 Compliance Effect of the Biden Administration on Health and Retirement Benefits Health and retirement benefit plan sponsors will likely see efforts to reduce health costs for Americans and a rolling back of current administration efforts, especially on ESG investing. Compliance Judge Certifies Sizable Class in Lawsuit Over TIAA’s Retirement Plan Loan Program The lawsuit alleges TIAA kept some of the interest participants paid on loans from their retirement plans, which it says ‘is the epitome of self-dealing.’ Compliance The Basics of Terminating a DC Plan From updating the plan with statutory amendments to filing the final Form 5500, there are many details to attend to when terminating a defined contribution plan. Compliance Abbott Brought Back Into Retirement Plan Cybersecurity Lawsuit Previously dismissed from the lawsuit, Abbott is accused in an amended complaint of failing to monitor its recordkeeper and failing to enforce a security question routine on its benefits website. Benefits Pandemic Lowers Employer Health Care Costs for First Time in Decades It’s uncertain what will happen with costs going forward, however. Did someone forward you this newsletter? Sign up here to get PLANSPONSOR Weekend directly in your mailbox!

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