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Segal Advisors' Response to the SEC's Report on the Pension Consulting Industry (PDF)

2 pages. Provides responses the 10 questions the SEC suggested that pension plan sponsors ask their consultants.

The Segal Company Acquires Aon Consulting's U.S. Multiemployer Defined Benefit Business

Excerpt: The transaction involves about 60 multiemployer plans for which Aon Consulting had been providing services.

2016 Segal Health Plan Cost Trend Survey (PDF)

"Medical trends are projected to range from a low of 6.8 percent for HMOs to a high of 9.9 percent for FFS plans. For the most common plan types offered -- open-access PPO/POS plans and HMOs -- trend rates are projected to vary by about 1 percentage point across product types.... The trend rate for prescription drug carve-out coverage for actives and retirees under age 65 is expected to increase significantly in 2016 to a rate of 11.3 percent.... The projected trend for hospital services is 8.2 percent for 2016, which is slightly higher than the projected trend for 2015. The projected trend for physician services is 5.5 percent for 2016, which is a modest reduction from the projected trend for 2015."

Another District Court Rejects Use of Segal Blend for Use in Multiemployer Plan Withdrawal Liability

"Employers who have withdrawn from a multiemployer pension fund that has assessed a withdrawal liability using the Segal Blend or some other discount rate assumption that varies from that used for funding and who do want to consider challenging that liability should consider: [1] Getting an analysis from an actuary independent from the fund of what the difference in withdrawal liability would have been had the fund used the same discount rate it does for funding calculations. [2] Determining whether that difference is sufficient to justify the cost and effort of pursuing arbitration and a possible court battle." [Sofco Erectors, Inc. v. Trustees of the Ohio Operating Engineers Pension Fund, No. 19-2238 (S.D. Ohio May 19, 2020)]

Sixth Circuit Strikes Down 'Segal Blend' for Calculation of Multiemployer Plan Withdrawal Liability

"This result means, in the Sixth Circuit at least, that in many cases the withdrawal liability that a multiemployer plan may assess against withdrawing employers may be significantly lower than it has been in the past." [Sofco Erectors, Inc. v. Trustees of Ohio Operating Engineers Pension Fund, No. 20-3639 (6th Cir. Sept. 28, 2021)]

Court Rejects 'Segal Blend' for Withdrawal Liability Calculations

"[T]he court found that the plan's Trustees and Enrolled Actuary do not have complete discretion in their choice of an appropriate discount rate in determining withdrawal liability for employers that significantly reduce or entirely cease contributing to a multiemployer plan.... [This article will] discuss why ... the judge ruled on this issue the way he did, [and] what this could mean for other employers withdrawing from multiemployer funds[.]" [The New York Times Co. v. Newspapers & Mail Deliverers'-Publishers' Pension Fund, No. 17-6178 (S.D.N.Y. Mar. 26, 2018)]

2016 Medical Stop-Loss Coverage (PDF)

"Interest in stop-loss coverage has grown since the [ACA] eliminated annual and lifetime dollar limits on essential health benefits -- and as the number and value of high-amount claims has risen. This infographic presents 2016 data drawn from more than 200 Segal Consulting health plan clients that have stop-loss coverage."

Congress Likely to Amend Affordable Care Act in 2017

"Segal expects that the 115th Congress, which convenes in January 2017, will act quickly to repeal the parts of the [ACA] that can be repealed without triggering a filibuster in the Senate. This will likely involve ... [the same process] that Congress followed in late 2015 and early 2016 when it passed HR 3762, legislation to repeal the significant parts of the [ACA]. That legislation was vetoed by President Obama on January 8, 2016, and the House failed to override the veto on February 2, 2016. Congress will likely pass much of this legislation again, and this time a bill will be signed, not vetoed. This Update provides background on the budget process, including what can -- and cannot -- be achieved through it. The Update also briefly addresses the regulatory and enforcement process and what may occur using those administrative tools."

Survey of Principal Features of Multiemployer Defined Contribution Plans (PDF)

"Given the increasing importance of defined contribution plans in helping to ensure participants' 'retirement readiness' as a supplement to a defined benefit pension plan, trustees may want to benchmark their fund's annuity plan, which can be either a profit-sharing plan or a money-purchase pension plan, against Segal's client database."

Agencies Provide Guidance on Coupons and Out-of-Pocket Limits for Nongrandfathered Plans

"[DOL, HHS and IRS] acknowledge the confusion previously generated by HHS in the 2020 Notice and stated that HHS, in consultation with the other Departments, will address this issue in the Notice of Benefit and Payment Parameters that will be issued for 2021.... In the meantime, the Departments will not initiate an enforcement action if a plan sponsor (or insurer) excludes the value of the coupon from the OOP limit, including in situations where there is no medically appropriate generic available."