The agency is required to adjust these amounts annually for inflation, but the agency says its goal is to encourage compliance, not to penalize plans that inadvertently forget to file information.
Tag: defined benefit plans
Most firms that track DB plan funded status estimated between 1% to 3% improvement for the year.
Michael A. Moran, with GSAM, says the firm expects voluntary contribution activity to continue into 2018, as defined benefit plan sponsors claim a deduction at their former, higher tax rate.
Public pension fund members surveyed expressed interest in more transparency about pension fund investments and investment returns.
The idea is to put participants with lesser unfunded vested benefits (UVBs) in one plan, and those with greater UVBs in another.
Beginning in January, terminating DC plans will have the option of transferring missing participants’ benefits to PBGC instead of establishing an individual retirement account (IRA) at a financial institution.
A final rule provides a new table for determining expected retirement ages for participants in pension plans undergoing distress or involuntary termination with valuation dates falling in 2018.
The updated mortality improvement rates and static tables apply for purposes of calculating the funding target and other items for valuation dates occurring during calendar year 2019.
Eighty-one percent of pension plan professionals say funded status volatility is their top motivating factor for pursuing an LDI strategy.
A report from Cerulli Associates states the primary reason an institutional investor seeks out a CIT is the fact that it can often gain more favorable pricing compared to using other vehicles.
Firms that track DB plan funding reported increases in the month ranging from 0.4% to 1.0%.
No lever alone is enough to close the pension funding gap, according to a report from Cambridge Associates.
The request regards distress terminations and PBGC-initiated terminations of DB plans.
The tables are to be used for determining contributions to DB plans and permitted disparity in DC plan contributions.
Those tracking S&P plans estimate a slight decrease in or flat pension funding ratio, while other estimate a slight increase. Most agree funding is up for the year.
The group says it has considered moving from a DB plan for clergy to a DC plan and concluded that doing so “would be irresponsible.”
NEPC says pension plan sponsors' expected returns are unrealistic.
Funded status of the typical corporate pension plan increased by 1% or 2% over the quarter, depending on the model tracked.
According to the GAO report, the three pillars of the current retirement system in the United States are anticipated to be unable to ensure adequate benefits for a growing number of Americans due, in part, to the financial risks associated with certain federal programs.