"[OPM] is revising the table of reduction factors for early commencing dates of survivor annuities for spouses of separated employees who die before the date on which they would be eligible for unreduced deferred annuities. The annuity factor for spouses of deceased employees who die in service when those spouses elect to receive the basic employee death benefit in 36 installments under the Federal Employees' Retirement System (FERS) Act of 1986 remains unchanged."  MORE >>

"The Office of Personnel Management (OPM) is providing notice of revised normal cost percentages for employees covered by the Federal Employees' Retirement System (FERS) Act of 1986."  MORE >>

"[OPM] is providing notice of adjusted present value factors applicable to certain retirees under the Federal Employees' Retirement System (FERS): [1] Retirees who elect to provide survivor annuity benefits to a spouse based on post-retirement marriage; [2] retiring employees who elect the alternative form of annuity; or [3] retirees who elect to credit certain service with nonappropriated fund instrumentalities. This notice is necessary to conform the present value factors to changes in the economic and demographic assumptions adopted by the Board of Actuaries of the Civil Service Retirement System."  MORE >>

"[OPM] is providing notice of adjusted present value factors applicable to certain retirees under the Civil Service Retirement System (CSRS): [1] Retirees who elect to provide survivor annuity benefits to a spouse based on a post-retirement marriage; [2] retiring employees who elect the alternative form of annuity, owe certain redeposits based on refunds of contributions for service ending before March 1, 1991, or elect to credit certain service with nonappropriated fund instrumentalities; or [3] for retirees with certain types of retirement coverage errors who can elect to receive credit for service by taking an actuarial reduction ... This notice is necessary to conform the present value factors to changes in the economic and demographic assumptions adopted by the Board of Actuaries of the Civil Service Retirement System."  MORE >>

"The current accounting rule may make sense for a traditional cash balance plan, in which the interest crediting rate is generally unrelated to the plan's discount rate, by allowing recognition of the economic effect that difference. But MRCB plans function much more like defined contribution plans, where returns on plan accounts equal returns on plan assets. In that context, as FASB says, the current accounting rule 'may not reflect the economics of those plans.' "  MORE >>

"More than half of plans automatically rollover small balances -- either through the Portability Services Network or through an automatic rollover solution provider.... [N]early ten percent are considering it (8.9%). Most comments think it's a good idea though there are some concerns about not all recordkeepers being a part of the Portability Services Network and the challenges that creates."  MORE >>

"President Trump signed an executive order this spring designed to enhance the options for workers who don't have access to an employer-provided retirement plan ... The White House initiative coincides with a government matching-contribution program that also starts next year, known as the Saver's Match ... Some states are also taking measures to help workers who lack access to employer-sponsored retirement plans by providing automatic IRAs."  MORE >>

"The Wall Street Journal called it 'The Retirement-Savings Weapon Doctors and Lawyers Use to Build Wealth' and 5500 and 5500-SF form filings for 2024 reported that, of the 39,194 Schedule SB filings for Defined Benefit plans, 27,462 were for Cash Balance (CB) plans of which at least 20,919 satisfied coverage and nondiscrimination requirements by combining the CB plan with another plan. This series will examine how Cash Balance plans became so popular with an emphasis on how nondiscrimination testing got weaponized."  MORE >>

"In a combo design the employer's defined benefit and profit sharing contributions are aggregated and tested on a benefits basis ... The idea is for the owner/key employees to receive more of their retirement value in a DB plan, while rank-and-file employees receive more through a DC plan ... For 2023, Form 5500-SF included a new compliance question: [14a] Does the plan satisfy the coverage and nondiscrimination tests of Code sections 410(b) and 401(a)(4) by combining this plan with any other plans under the permissive aggregation rules? So how prevalent is a design that warrants this question?"  MORE >>