"[For defined benefit plans,] reasonable actuarial assumptions are to be used to determine how expected forfeitures will affect the present value of plan liabilities. The difference between expected and actual forfeitures will then increase or decrease the plan's minimum funding requirement in future years.... [For defined contribution plans, an] operational qualification failure will occur if forfeitures remain unallocated at the end of the 12-month period following the end of the plan year."  MORE >>

"While the added contribution cost [for long-term part-time employees] may be relatively modest, this change likely will require changes to administrative procedures (adding procedures for checking whether the hours were met in the prior two years, etc.), which will likely require change orders and fees."  MORE >>

Chart details SECURE 2.0 employer retirement plan changes that become effective for years beginning, or distributions or transactions occurring, after 2023.  MORE >>

"Congress recently passed legislation seeking to nix a [DOL] rule meant to help retirement plan managers factor things like climate change and social justice into investment decisions, a move that attorneys say highlights the legal risks for plans that offer funds devoted to socially conscious investing.... [W]ith the push for ESG coming from all different directions, plans are inevitably putting themselves at risk."  MORE >>

"Too many plan sponsors have simply chosen to blindly follow the advice of conflicted third parties, such as mutual funds and insurance/annuity salesmen. The courts have warned plan sponsors that reliance on third parties must be both reasonable and justified. As the courts have warned plan sponsors, reliance on commissioned sales people is rarely reasonable or justified due to the inherent conflict of interests that exists with such advisers."  MORE >>

"[This paper] will discuss the various underlying risks and ways that plan sponsors can manage them so they don't become a significant burden while continuing to provide meaningful retirement income to plan participants."  MORE >>

"Nearly 15 years ago, corporate pension plans lobbied Congress to pass a wonky benchmark rule that provided funding relief in the wake of the global financial crisis. Now, as interest rates have risen rapidly, the rule is coming back to haunt their plan sponsors. The consequences could be painful. In a bear market, corporations could be forced to make contributions to pension plans that are already fully funded."  MORE >>

"Pension finances enjoyed another month of positive experience in February, as higher interest rates offset the impact of falling stock markets. Both model plans ... saw improvement last month: Plan A improved 2% in February and is now up almost 3% for the year, while Plan B improved a fraction of a percent last month and is up almost 1% through the first two months of 2023."  MORE >>

"Contrary to [one] article's conclusions, U.S. public retirement systems governed by members from key stakeholder groups ... are as likely, if not more likely, to be effectively managed than are large, aggregated funds in ... other countries where boards are often comprised of academics and 'investment professionals' whose proximity to members and stakeholders may be remote."  MORE >>

"[This post discusses:] [1] Mission and vision statements of the two major actuarial bodies in the U.S. (and how advancing an actuarial approach can be considered entirely consistent with these statements). [2] Fundamental concepts of actuarial science that the actuarial bodies appear to ignore when providing planning advice to retired households ...  and [3] Possible reasons why the actuarial profession in the U.S. is reluctant to advance actuarial solutions"  MORE >>