Here you’ll find all news stories and all posts on ASPPA Net, with the newest items at the top.
Pension plans have a lot of adjustments to make in order to comply with the PBGC premium payment rules, which the PBGC amended for plan years beginning in 2014 and beyond. And even if a plan does not owe the PBGC a premium, it still must make a premium filing.
Reacting to a forensic investigation initiated by state employees, North Carolina’s $87 billion state pension system may be moving from a sole trustee to a board soon. As reported in P&I, a panel convened by State Treasurer Janet Cowell (D) is recommending the change amid allegations set forth in a forensic investigation commissioned by the State Employees’ Association of North Carolina.
House Committee on Education and the Workforce Chairman Rep. John Kline (R-Minn.) didn’t mince words at a May 1 event on multiemployer pension plan reform: the current state of affairs “will inflict a lot of pain on homes and workplaces,” and something needs to be done. He made his remarks at an event the Quality Construction Alliance and Bloomberg Government held in Washington, D.C.
There are things you should do — and not do — in using social media. And it’s especially complicated for those in the retirement plan industry, since social media communications must comply with the rules promulgated by regulatory bodies and others. Join us for an upcoming webcast, “Realities of Social Media in a Regulated Industry,” on Thursday, May 15 from 2 p.m. to 3 p.m. EDT.
The Moving Ahead for the 21st Century Act (MAP-21) pension-funding stabilization provisions, which have been in effect for two years, are most likely to be applied to the determination of funding requirements of larger plans, those with lower funding ratios and plans with a higher number of inactive participants, a new Society of Actuaries (SOA) study shows. The SOA based its research on the data that defined benefit plans reported on their 2012 Form 5500 filings, the most recent the federal government has made publicly available.
With another testing season in the rear view and PPA restatements looming on the horizon, there are sure to be plenty of questions on everyone’s mind, and ASPPA’s IRS Q&A subcommittee wants to hear them! We are currently gathering questions to go on the list that will be submitted to our friends at the IRS and discussed at the Question & Answer general session at this October’s Annual Conference.
Target date funds play an increasingly important role in retirement plans, and monitoring a plan’s TDF options is fast becoming one of the most important fiduciary obligations plan sponsors face in managing their retirement plan investment lineup. According to a white paper by Cammack Retirement Group, TDFs hold more than half a trillion dollars, including DC plan assets, and there’s no end in sight.
Defined contribution plans that were rewritten between May 1, 2008 and April 30, 2010 and that the IRS pre-approved need to be restated with the IRS. The six-year restatement period begins May 1, 2014 and ends April 30, 2016.
In two recent pronouncements, the IRS issued plan document guidance for pre-approved defined contribution plans being restated for the Pension Protection Act of 2006 (Announcement 2014-16), as well as 403(b) arrangements (Revenue Procedure 2014-28). According to the latest ASPPA asap, written by Richard A. Hochman, the guidance is a mixed bag.
Qualified retirement plans offer employees significant tax savings and have become a mainstay of most group benefits. But to maintain their qualified status, they must comply with a set of comprehensive rules and regulations. Failure to comply can result in the immediate taxation of all participants and the loss of the business expense for company contributions, as well as personal and legal repercussions for fiduciaries.
A recent GAO report found that while 81,000 new employer-sponsored retirement plans were formed during the 3-year period between 2009 and 2011, the overall trend was negative due to plan terminations — even with increased tax incentives. In addition, new plan formation during that period was below 2003-2007 levels. But the news was not all bad: The number of participants grew.
The IRS can do more to identify improper deductions for contributions the self-employed make to their simplified employee pension plan retirement accounts. And it could bring in $71 million over five years if it does, says the Treasury Inspector General for Tax Administration in a recently released report.
Pension funding status slipped in March and liabilities grew, says a report by consulting and actuarial firm Milliman, Inc. Milliman reports that for 100 of the largest U.S. DB plans, pension liabilities grew to the tune of a collective $5 billion. Milliman blamed a drop in the monthly discount rate to 4.30 percent, down 0.08 from February’s 4.32 percent.
In an exclusive interview with Christopher Carosa of FiduciaryNews, ASPPA Executive Director/CEO Brian Graff reaffirms his strong support, and that of ASPPA and its sister organizations, for real and tangible action to ensure a secure retirement for working Americans.
As an ASPPA member, you’ll receive ASPPA Connect twice a week, on Monday and Thursday. It will provide an engaging mix of news coverage, business intel, commentary and technical guidance, as well as insight into ASPPA’s ongoing efforts to protect our industry.
The Pension Benefit Guaranty Corporation has proposed allowing an employee to roll over funds from a DC plan into a DB plan.The proposal, which the PBGC issued on April 1 and was published in the Federal Register on April 2, is intended to increase returns by making rollovers easier and removing limits that could inhibit retirement saving.
A majority of small businesses said in a recent study that the fee disclosure statements they receive from plan providers and vendors are more understandable than those they received in 2012.
Responding to the lack of access to work-site retirement plans, Illinois became the latest state to propose a mandatory retirement plan for private-sector employers. The “Illinois Secure Choice Savings Program” would be a portable IRA-like plan mandatory for all companies with 25 or more employees that have been in existence for at least two years.
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