Wednesday, January 3rd, 2024 A topical newsletter from PLANSPONSOR Information for plan sponsors about defined benefit plans. SPONSORED AD Compliance IRS Clarifies SECURE 2.0 Cash Balance Backloading Test Changes The IRS says that the balance and accrual rate for a participant cannot be reduced when adopting a new variable rate. Administration Pennsylvania PSERS Ends Contract With Aon, Certifies Decrease in Contribution Rates Certain public school employees will also benefit from a reduction in the mandatory employee contribution rate to the pension fund. Data and Research How Higher Interest Rates Are Changing Focus of Fully Funded Pension Funds Many corporate pension fund leaders are re-evaluating their liability-driven managers and allocations. Benefits Will IBM Resurrection of Cash Balance Plan Cause a Ripple Effect? With more plan sponsors maintaining overfunded pension plans, some analysts argue that reopening a defined benefit plan, as IBM plans to, might be a good idea. Benefits Higher Bond Yields Mean Higher Corporate Pension Funding Levels Some pension funding models reached their highest points in decades. Benefits IBM Plans to End 5% Employer Matching in 401(k) Plan The American multinational technology company is pulling its traditional 401(k) company match in favor of a company retirement account contribution for all employees. Did someone forward you this newsletter? Sign up here to get PLANSPONSOR Spotlight directly in your mailbox!

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