Tag: defined benefit plans

Study Quantifies How Much DB Plans Benefit the Economy

According to a report from the National Institute of Retirement Security, “Retirees with DB pensions know they are receiving a steady check despite economic conditions. In contrast, retirees may be reluctant to spend out of their 401(k)-type accounts if their savings are negatively impacted by market downturns.”

Art by Mark Wang

DB Plan Glide Paths Should Be Dynamic

When a glide path is established, it needs to be revisited at least once a year to ensure that the goals for the pension plan are achievable.

New Risk Assessment Required for DB Plans

ASOP 51 requires actuaries performing valuations for defined benefit plans to identify risks that, in the actuary’s professional judgment, may reasonably be anticipated to significantly affect the plan’s future financial condition, and Eric Keener, with Aon, says this may help plan sponsors avoid adverse actions.

PBGC Posts 2019 Premium Rates

A table on the PBGC’s website shows that the flat-rate premium for single-employer plans has grown from $31 in 2007 to $80 in 2019, and the variable-rate premium has grown from $9 to $43.