PBGC has posted this table showing the applicable present values for 2023 plan years. A two-column spreadsheet [XLSX] version of the table is also available.  MORE >>

"The proposal permits the most common methods for setting the interest rate but doesn't change the rules for other actuarial assumptions. The comment deadline is Nov. 14."  MORE >>

"[T]he Court found that the Defendants had robust policies and procedures in place for monitoring and evaluating the Plan's investment options ... [and] reiterated that not adopting an IPS is not a per se ERISA violation.... [T]he Court found that the Plan was treated no less favorably than similarly situated plans with respect to fee rebates, and dismissed Plaintiff's prohibited transaction claim. " [Falberg v. The Goldman Sachs Group, Inc., No. 19-9910 (S.D.N.Y. Sep. 14, 2022)]  MORE >>

"The judge allowed to proceed to trial plaintiffs' claims that Yale 'breached its fiduciary duty to monitor and avoid unreasonable recordkeeping fees with respect to the plaintiffs' contentions that Yale imprudently delayed consolidating to a single recordkeeper, failed to obtain competitive bids, used asset-based pricing and failed to prohibit TIAA from cross-selling' ... Plaintiffs' argument [that] Yale plans fiduciaries engaged in mismanagement and imprudent acts, which resulted in losses to the plan, will also proceed." [Vellali v. Yale Univ., No. 16-1345 (D. Conn. Oct. 21, 2022)]  MORE >>

"Annuities are 10% to 40% more efficient at generating retirement income than a traditional fixed income portfolio. Traditional single premium immediate annuities today make up just a fraction of all annual annuity sales. The proliferation of non-commission-based annuity products is transforming the annuity landscape for fee-based advisors."  MORE >>

"As of fiscal year 2021, the total reported unfunded liabilities of these plans is $1.076 trillion. In contrast, the market value of the unfunded liability is approximately $6.501 trillion. As a result, the reported funding ratio of 82.5% falls to 43.8% under a market-based valuation.... [N]ot only is the unfunded pension liability understated, but also the yearly pension cost for newly accruing liabilities. In order to achieve high returns, pension funds have accumulated large exposure to risky assets, in particular alternative investments, which results in highly uncertain investment returns."  MORE >>

"Unlike the DB benefit, the properly designed DC program does NOT require that the plan sponsor be around for the lifetime of the retiree -- portability of the DC benefit is a critical differentiator. It also means that the retiree payouts are not dependent upon the employer's design of the payout.... This 'advantage' does, however, require that the design actually be able to protect these DC retirement accumulations which are to be paid out over the lifetime of the retiree."  MORE >>

"[If] a transaction is administratively feasible, in the interests of plans and participants, and protective of their rights, there is no need for DOL to consider whether the transaction could alternatively be structured to avoid prohibited transactions.... [T]he costs associated with preparing a quantitative cost-benefit analysis for every application do not justify the marginal benefits that they would provide to DOL.... [T]he parties who participate in exempt transactions should be able to freely negotiate how any liabilities arising from an exempt transaction may be assigned."  MORE >>

"This matters to employers because it will open the market to new accounting firms that can issue the accountant's report for the Form 5500 annual filing. IQPAs are the auditors who issue the annual accountant's report. While not all Form 5500-filers are subject to the accountant's report requirement, ERISA-covered retirement plans (except for certain small retirement plans) and funded welfare plans must provide the accountant's report annually."  MORE >>

"[In] the reopening releases, the SEC stated that including only 'Big R' restatements could lead companies to make questionable materiality judgments in order to avoid recoupment of incentive compensation. By including the more commonplace 'little r' restatements in the final rules, the SEC broadened the scope of the rules considerably."  MORE >>

"[C]ompanies are advised to review their existing clawback policies to determine what modifications will be needed to comply with the new rules. Potential revisions include those relating to which officers are covered (including covering former officers), the types of compensation covered, the kinds of restatements that trigger compensation recovery, the lookback period, the mandatory nature of clawbacks under the new rules, and the exceptions to compensation recovery."  MORE >>