PLANSPONSOR Weekend Newsdash
Week ending October 26th, 2018

Defined benefit (DB) plan sponsors have enjoyed improved funded status so far this year. Some see this as a time to take action to de-risk their plans. However, if plans are overfunded, this could create challenges, and plan sponsors need to know what to do. As for compliance, DB plan sponsors are facing increased disclosure requirements in the near future, and they may have to provide more information in their reportable events filings if the Pension Benefit Guaranty Corporation (PBGC) gets its way. This edition of PLANSPONSOR Weekend focuses on information helpful to DB plan sponsors.

Editor's choice
Administration
Goldman Sachs: Many Pensions Stand in PRT Goldilocks Zone
According to Goldman Sachs Asset Management’s new white paper, “Stars Aligning for Corporate Plans to Take De-Risking Actions,” almost 25% of U.S. corporate defined benefit (DB) plans are now in a fully funded or over-funded position. As the paper’s title indicates, this means many plan sponsors are in a great position to take further de-risking actions. Read more >
Administration
Managing Surplus Funding When Terminating a DB Plan
An article by Brian Donohue, partner at October Three Consulting, discusses how a funding surplus can pose a challenge to DB plan sponsors’ risk transfer or plan termination actions and what they can do to mitigate this problem. Read more >
Compliance
PBGC Asks That More Information Be Added to Reportable Events Filings
The PBGC is proposing in a renewal request that all reportable events filings include controlled group information, company financial statements, and the plan’s actuarial valuation report. Read more >
Administration
SOA Mortality Scale Update Could Decrease Pension Plan Obligations
The Society of Actuaries (SOA) has updated its annual mortality improvement scale for pension plans through the publication of “MP-2018,” finding a decline in future rates of mortality improvement and lower pension plan obligations compared with its 2017 scale. Read more >
Administration
Corporate Pension Funding Ratios Greater Than 90% After September
Some firms that track pension funded status point out that plan sponsors should prepare for changes in the future as a market correction is expected and funding relief fades and higher plan sponsor contributions will be required. Read more >
MOST POPULAR STORIES
The Senate Math That Could Block SECURE Act
Senate floor time is at a premium ahead of the 2020 presidential election—so much so that even legislation that passed the House with a near-unanimous bipartisan vote is not guaranteed to become law.
House Committee Advances Bill to Establish Union Pension Lifeline Program

The legislation aims to establish a 30-year loan program and new financial assistance for financially troubled multiemployer pension plans.

Open MEPs Not for Every Plan Sponsor
If legislation passes to allow for open multiple employer plans (MEPs) for plan sponsors without a common nexus, experts believe they will offer benefits to plan sponsors, but there would be some considerations to explore before joining one.
Driving Financial Wellness at Work
Wes Collins, senior manager of participant advice services at CAPTRUST, discusses financial wellness areas of focus, broken out by career stage.
Pension Participants Claim ERISA Breaches in Dow DuPont Pension Transfer

In a new ERISA lawsuit seeking class action status, the plaintiffs claim their pension assets were disloyally and imprudently transferred during a complex series of corporate spinoffs and mergers.

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

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

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