PBGC has determined the premium rates applicable for the 2023 plan year in accordance with the indexing rules provided in section 4006 of ERISA, and updated the Premium Rates web page accordingly.  MORE >>

"The proposed regulation would appear to resolve some of the issues that have arisen in recent years with respect to the interest rate used to determine withdrawal liability. However, the wording of the regulation raises a number of questions. If the interest rate can be within a specified range, who decides what rate will be used? Can the interest rate be decided after a plan year is over?"  MORE >>

"The PBGC predicts the proposed rule, if enacted, would, among other things: ... [1] [R]esult in in increased withdrawal liability payments by employers of between $804 million and $2.98 billion over the next 20 years. [2] Provide more certainty resulting in reduced arbitration and litigation costs ... [providing] between $500,000 and $1 million in savings annually."  MORE >>

"The proposed regulations, if finalized in their current form, would allow pension plans to use any rate within the permitted spectrum ... without any specific methodology or constraints on how the rate is selected.... [T]he proposed regulations do not (and likely could not) modify how an employer's withdrawal liability payment schedule is calculated or the 20-year cap that applies even if the employer will not fully pay its nominal liability in 20 years under the payment schedule.... The impact of these proposed regulations is, therefore, plan and employer-specific."  MORE >>

"The notice's relief applies only for the 2020 and 2021 distribution calendar years.... [P]resumably IRS expects plans and taxpayers to comply with the proposed regulations' interpretation of the 10-year rule for 2022 and later years. This could also signal that IRS doesn't intend to revise its interpretation of the 10-year rule in response to comments received on the proposed regulations."  MORE >>

"The Social Security Administration just announced ... the maximum amount of earnings subject to Social Security tax will increase in 2023 from $147,000 to $160,200 ... Employers who sponsor retirement plans that are 'coordinated' with Social Security in some fashion [will] see an impact on benefits earned and payable under such plans.... IRS will soon release limits applicable to retirement plans for various purposes in 2023, based on an 8.33% increase in CPI-U ... [A table] summarizes [estimated] calculations for 2023[.]"  MORE >>

"The decision to establish a 401(k) plan is a business decision.... [O]nce the plan is established, decisions regarding the operation of the plan are governed by the fiduciary obligation to act in the best interests of the plan participants.... [H]ere are 10 critical questions you need to ask to confirm compliance with these standards:"  MORE >>

"[The Retirement Savings Modernization Act (S 4973, HR 9066)] would amend ERISA to let plan fiduciaries offer investments from a list of specific asset classes -- including digital assets, private equity (PE) and annuities -- without any presumption of imprudence."  MORE >>

12 pages. "The purpose of this discussion brief is to provide a source of information to actuaries seeking to better understand the considerations and complexities when using augmented pension mortality assumptions ... [defined as] a valuation assumption that uses additional predictive information taken from nontraditional data elements (beyond age, sex, collar, etc.) from a source external to that data set ... Examples and discussion ... further illustrate the concept."  MORE >>

"This post briefly describes occasions when plan participants (or designated beneficiaries) take money out of 403(b) accounts. Process steps and tax implications for each type of withdrawal method are described. Research results, three 'need to know' facts, and six take-away action steps conclude this discussion."  MORE >>

"The most important decision you will make in retirement planning is how much of your resources to allocate to the upside and floor portfolios ... The correct balance [between the upside and floor portfolios] will depend on how willing you are to risk losing your standard of living for the chance of having an even higher one."  MORE >>

"Plan sponsors often agree to ... fiduciary disclaimer clauses in exchange for revenue sharing payments from the broker's/adviser's broker-dealer. The plan sponsor then uses such revenue sharing payments to reduce the plan's administration costs. The legal issue with such fiduciary disclaimer clause/revenue sharing arrangements is that reducing administrative costs does not change the cost-inefficiency of imprudent investment options within the plan or otherwise reduce the ongoing financial impact of such imprudent investments."  MORE >>

"In his recent Forbes column, Edward Siedle cited a study claiming that 94 percent of America's state and local government pensions are gambling on cryptocurrencies ... Of the 50 state/government pension plans around the world that responded to the survey, only 16 percent were in the US -- meaning only 8 ... of the more than 5,000 US-based public pension plans are part of the figure Siedle references. The study is hardly representative of US public pensions and their investment strategies."  MORE >>

"[D]iscretionary clauses are contrary to ERISA's purpose and intent. Legislation that would prohibit discretionary clauses in benefit plans other than multi-employer plans ... was recently passed by the U.S. House of Representatives [HR 7780], and it must be passed by the U.S. Senate as well, and signed into law by President Joe Biden."  MORE >>