Practical HR Tips, News & Advice. Updated Daily.
The first of what is expected to be a series of interest rate increases by the U.S. Federal Reserve on Dec. 16 should start to help defined benefit retirement plans recover from years of underfunding, Moody’s Investor Service said in a report Dec. 14. Pension funding levels for about 670 rated U.S. non-financial corporate pension […]
The 2015 ERISA Advisory Council plans to build on a 2013 effort by devising new draft model notices and disclosures for lump-sum pension distribution offerings to participants and retirees. Instances of pension risk transfer — often referred to as “derisking,” from the plan sponsor’s point of view — are on the rise among single-employer defined […]
For the third time in eight years, a federal district court decision endorsing Xerox’s pension plan interpretation has been reversed, setting aside judicial deference usually granted to these interpretations under ERISA and moving Xerox retirees closer to winning final benefits. The issue in the case is how an earlier lump-sum distribution to some employees affects […]
BY Justin Alex, Proskauer Rose Law Firm Defined benefit plan sponsors can solve plan overpayments in several ways, including using IRS self-correction programs. But it’s important to remember that plans are not required to keep paying benefits to those not eligible for them to begin with, Proskauer Rose law firm associate attorney Justin Alex reminds us […]
Working with investment managers on optimal asset mixes and maximizing returns long has been important for employer retirement plan sponsors and committees. But in recent years it also has become advisable for those overseeing fund managers to understand responsible investing principles — at the same time they have become more important for many plan participants. […]
Regulatory guidance is closer to fruition that may help 401(k) and 403(b) plan sponsors better educate plan participants on lifetime income options, and may allay their concerns about the expense and legal risk of doing so. On May 8, the U.S. Department of Labor’s Employee Benefits Security Administration issued an advance notice of proposed rulemaking […]
New guidelines from the U.S. Department of Labor help defined benefit plan sponsors see and report exactly what’s changed for their calculation of pension plan liabilities under Moving Ahead for Progress in the 21st Century Act requirements. Several changes to ease funding requirements for DB plans arrived with the start of MAP 21’s transportation reauthorization […]
By Lyne Duhaime and Ross Gascho If your company is both the sponsor and administrator of a pension plan in a Canadian province other than Quebec, you should take note of the recent Ontario Court of Appeal decision in Re Indalex. Although the case deals with competing claims in insolvency and deficits in wound up […]
By William Duvall After years of consultations, the Canadian government has announced significant changes to the legal framework for federally regulated pension plans. In addition, proposed changes to the Income Tax Act would affect all defined benefit plans whether regulated federally or provincially. While we can’t cover all the contemplated changes in this article, we […]
by Bill Duvall At the best of times, employer-sponsored pension plans bring with them thorny administrative and legal problems. These issues multiply in an economic environment in which many such pension plans face funding problems while employers seek to reduce their costs. Many employers have attempted pension plan amendments to reduce funding pressures. One such […]