Updates – Defined Benefit Plans

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protected content PBGC Finalizes Rules Regarding the Treatment of Rollover Amounts in DB Plans

The Pension Benefit Guaranty Corporation (PBGC) finalized regulations regarding the treatment of rollovers into defined benefit plans if the plan is terminated and trusteed by the PBGC (the “rollover regulations”). … More

ERIC Offers Recommendations on PBGC Information Collection Request on De-Risking Activities

The ERISA Industry Committee (ERIC), the Washington, D.C.-based trade association representing America’s major employers, today in a letter to the Pension Benefit Guaranty Corporation (PBGC) urged the agency to support plan sponsors’ efforts to maintain their defined benefit pension plans, including methods used by companies which enable them to continue to sponsor these plans.… More

protected content ERIC Submits Letter on PBGC Information Collection Request on Payouts to Certain Former Employees

ERIC on November 24 submitted a comment letter in response to the Pension Benefit Guaranty Corporation’s (PBGC) Information Collection Request on payouts to certain former employees. … More

protected content ERIC to Hold December 8th FocusOn Call on De-Risking and Defined Benefit Plans

ERIC has scheduled a FocusOn call on De-Risking and Defined Benefit Plans: Current Trends & Employer and Participant Considerations. With the continued trend of companies shifting portions of their pension benefits to an insurance company, we thought it would be helpful to ERIC members to offer an in-depth discussion on the process and considerations of de-risking pension plans.… More

protected content PBGC 2014 Annual Report Shows Improvement in Single Employer System

The Pension Benefit Guaranty Corporation (PBGC) on November 17 released its Annual Report, showing that the agency’s deficit increased to about $62 billion in fiscal year 2014, mostly due to the declining condition of a limited number of multi-employer plans. … More

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ERISA Advisory Council Offers Recommendations on Lifetime Income, PBM Disclosure, and Outsourcing Plan Services

The ERISA Advisory Council recently presented its recommendations to the Department of Labor (DOL) on the topics it studied in 2014, which included facilitating lifetime plan participation, whether to extend DOL’s service provider fee disclosure regulation to pharmacy benefit managers (PBMs), and outsourcing employee benefit plan services.… More

protected content GOP Mid-Term Election Sweep Will Impact Legislative Agenda

Vast tomes could (and will) be written about what went wrong for the Democrats or right for the Republicans. Anti-Obama sentiment, bad polling, lack of interest among young and retired voters, disgust with a gridlocked Congress, a flood of outside money, and local factors all probably played a role. But the fact remains that the GOP Congress will have to deal with a Democratic President for the next two years. So, what does that mean for the legislative agenda?… More

ERIC Joins Letter to House and Senate in Support of Frozen Plan and Nondiscrimination Testing Legislation

ERIC is advocating for the passage of legislation that would amend the nondiscrimination provisions of the Internal Revenue Code applicable to frozen defined benefit plans. … More

protected content GAO Issues Report on Measuring Pension Plan Liabilities

The U.S. Government Accountability Office (GAO) recently issued a report on determining the current value of defined benefit plans titled “Pension Plan Valuation: Views on Using Multiple Measures to Offer a More Complete Financial Picture”. … More

protected content Society of Actuaries Releases Report on Mortality Tables for Defined Benefit Plans

The Society of Actuaries released its report on selecting mortality assumptions for employer accounting purposes in the following reports: RP-2014 Mortality Tables and Mortality Improvement Scale MP – 2014. As you may recall, the actuaries are updating mortality tables that are used for various purposes relating to the administration of defined benefit plans… More

protected content IRS Announces 2015 Pension Plan Limits; PBGC Updates Website Showing 2015 Premiums, Maximum Benefits

The Internal Revenue Service on October 23 released the annual cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2015. Meanwhile, the Pension Benefit Guaranty Corporation (PBGC) updated its website to show the premium rates and maximum guaranteed benefit for 2015. … More

protected content Senators Harkin and Wyden Send Letter on De-Risking to Regulatory Agencies

Yesterday, Senator Harkin (D-IA), Chairman of the Committee on Health, Education, Labor & Pensions (“HELP” Committee), and Senator Wyden (D-OR), Chairman of the Senate Finance Committee, sent a letter to the Treasury Department, Department of Labor (DOL), the Pension Benefit Guaranty Corporation (PBGC), and the Consumer Financial Protection Bureau regarding the issue of de-risking transactions in defined benefit plans.… More

protected content PBGC Provides Reporting Relief for Plans Using HATFA Funding Rates for 2013

The Pension Benefit Guaranty Corporation (PBGC) recently issued Technical Update 14-2 advising that so-called 4010 filings do not need to be amended solely to revise actuarial information that changed because of a decision to use Highway and Transportation Funding Act (HATFA) rates for the 2013 plan year.… More

protected content DOL Issues Report on Pension Plan Coverage; Fuels Congressional Interest in Coverage Issues

On October 8, the Department of Labor (DOL) issued a report on 2012 participation in defined benefit (DB) and defined contribution (DC) pension plans. The report is based on Form 5500 annual reports. Not unexpectedly, the report shows a continuing shift from DB plans to DC plans. It will very likely fuel the interest … More

ERIC Signs on to Letter to Society of Actuaries on Mortality Tables

ERIC has signed on to a letter to the Society of Actuaries with various other business trade associations expressing concern over the process and timing of the release of the final reports on RP-2014 Mortality Tables. … More

protected content ERIC Focus on Benefits for Executives—Third Quarter—October 2014

This quarterly publication is designed to alert company management about several of the most important recent developments in the benefits arena that warrant their attention.… More

protected content Covington & Burling Summary of Hybrid Plan Regulations

Richard Shea and Robert Newman of Covington and Burling have released a brief summary of the long-awaited final regulations on hybrid plans that address the market rate of return issue. … More

protected content IRS Releases Final Regulations Requiring Retirement Benefit Plan Returns on Magnetic Media

The Internal Revenue Service on September 29 published in the Federal Register final regulations detailing the requirements for filing on magnetic media certain benefit plan statements, returns, and reports for plan administrators and employers … More

ERIC Joins Letter to Congress Honoring the 40th Anniversary of ERISA

The undersigned organizations, representing plan sponsors, service providers, and plan administrators who deliver retirement benefits to millions of American workers, ask you to join us in celebrating the passage of this law and the success of the private retirement system that has been created around it.… More

protected content PBGC Releases Guidance on HATFA & PBGC Premiums

Today, the Pension Benefit Guaranty Corporation (“PBGC”) released Technical Update 14-1: Effect of the Highway and Transportation Funding Act of 2014 HAFTA on PBGC Premiums. … More

PBGC Announces Plans to Collect Information on Cash Outs and Annuitizations of Benefits

The Pension Benefit Guaranty Corporation (“PBGC”) recently announced that it is planning to start collecting information on actions taken to cash out or annuitize benefits for certain former employees. … More

protected content Senators Cardin and Portman Introduce Frozen Plans/Nondiscrimination Testing Relief Legislation

Senate Finance Committee Members Ben Cardin (D-MD) and Rob Portman (R-OH) once again have teamed up on retirement security issues by introducing legislation to provide relief from ongoing nondiscrimination testing for frozen defined benefit plans, subject to certain conditions. … More

protected content Some Benefits Proposals Could Emerge in Lame Duck

When Congress returned home to campaign for the November 4 elections, lawmakers left for themselves a substantial list of must-do issues for their lame duck (post-election) session. That session—which is of the current 113th Congress—is scheduled to start November 12. … More

protected content Treasury Issues Final Hybrid Plan Rules and Proposed Regulations on Transition Issues

The U.S. Department of Treasury earlier today released final regulations regarding hybrid retirement plans, and proposed regulations concerning transitional amendments to satisfy the market rate of return rules for hybrid retirement plans.… More

ERIC Offers Support for Chairman Tiberi’s Bill to Provide Relief from Nondiscrimination Testing for Frozen DB Plans

In a statement submitted today to the House Ways and Means Subcommittee on Select Revenue Measures, the ERISA Industry Committee (ERIC) urged the subcommittee to protect and encourage the continuation of retirement plans by minimizing costs to maintain retirement plans, provide relief for frozen defined benefit plans, recognize the deferral nature of retirement savings, and critically evaluate proposals to change the system.… More

2008 2009 2010 2011 2012 2013 2014