A plan sponsor using pre-approved plan documents to restate a plan for the plan qualification requirements included on the 2012 Cumulative List will be required to adopt the plan document by April 30, 2020.
Tag: defined benefit plans
Institutions that track defined benefit (DB) plans’ funded ratios measured increases or decreases in funded status as high as 1%, but noted it could have been worse if not offset by higher liability discount rates.
The proposed rule would amend PBGC’s benefit payment regulation by replacing the guarantee limitations applicable to substantial owners with a new limitation applicable to majority owners.
According to Justin Owens, director, Client Strategy & Research, Russell Investments, while total 2017 contributions were the single largest ever recorded, just as noteworthy was the contribution above requirements.
“The takeaway is critical: it pays to remain patient,” the researchers wrote.
Although the latest report from the NCHS show life expectancy at birth declined, mortality rates for the older population continue to support projections of longer life expectancy, The Segal Group notes.
When computing defined benefit (DB) plan liabilities for 2015 using unsmoothed corporate bond rates to discount liabilities, roughly 84% of plans had unfunded liabilities, versus 11% for plans using the smoothed bond rates, the Society of Actuaries found.
While January was a great month for defined benefit (DB) plan funded status, recent market volatility underscores how important risk management is, says Matt McDaniel, with Mercer.
Willis Towers Watson’s Thinking Ahead Institute’s 2018 Global Pension Assets Study also found the U.S. retirement market has a greater propensity towards home bias in investing than other countries.
Mercer offers its list of key priorities for defined benefit (DB) plan sponsors for 2018.
The most common benefit changes organizations have made or are planning or considering include expanding personal financial planning, increasing 401(k) contributions and increasing or accelerating pension plan contributions.
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.
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.