PLANSPONSOR Weekend Newsdash
Week ending July 27th, 2018

This week we return to defined benefit (DB) plans and examine the current state of affairs—touching on how plan sponsors are managing the plans in light of tax reform and return assumptions, among other outside forces. Many DB plan sponsors are facing difficult decisions about what to do with their plans—keep them, freeze them (or hibernate them, as one of our articles discusses), close them or transfer the risk to an insurer. And, many multiemployer plans are facing dire situations, as a new Congressional committee heard testimony this week. Learn more about how PLANSPONSOR is keeping tabs on trends and tips for DB plan sponsors. 

Editor's Choice
Administration
What Is a Strategic DB Plan Termination?
Experts with cash balance plan design and administration provider Kravitz define the concept of strategic plan termination—what the pros and cons are, and what an employer’s responsibilities entail under IRS and PBGC regulations. Read more >
Administration
Tax Reform, Other Factors Leading DB Plans to Increase Funding
Nearly two-thirds (62%) of respondents to a survey say they are “very likely” to transfer some or all of their pension obligations to an insurance company once their DB plan becomes well-funded. Read more >
Investing
‘Hibernation’ the Next Step for DB Plan Investing
As more marketable obligations—such as those for in-pay retirees—are transferred to insurers, residual DB plans will have unusual and idiosyncratic features that make them more difficult to manage, which will drive pension investing to a “hibernation” focus for many, Mercer says. Read more >
Compliance
PBGC Updates Address for Pension Insurance Premium Payments
As noted on the updated PBGC website, effective immediately, the federal pension insurance program has a new set of addresses for plan sponsors sending premium payments and correspondence. Read more >
Compliance
Stakeholders Beg Congress to Act on Solvency of Multiemployer Pension Plans
Passionate testimony from a Teamster to the Joint Select Committee on the Solvency of Multiemployer Pension Plans appeared to outshine that from three financial experts. 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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