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MAP Retirement
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Cash Balance/ Defined Benefit Plan Administrator Steidle Pension Solutions, LLC
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Search the News Archive
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76 Matching News Items |
| 1. |
Fox & Hounds Blog
Oct. 30, 2013
"[A]ccording to CalSTRS's own data, more than three-quarters of the $48 billion increase in CalSTRS's unfunded liability between 2008 and 2012 appears to be attributable to an increase in liabilities. Less than 25 percent of the increase in unfunded liability appears attributable to a decrease in assets.... To this observer, CalSTRS's shortfall appears to stem less from the economic downturn and more from liabilities growing 70% faster than assets over the past 14 years."
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| 2. |
The Principal Blog
Oct. 1, 2020
"The single-employer program had a surplus of $8.7 billion on September 30, 2019 ... The median projected surplus in ten years is $46 billion.... [Plan] sponsors now wonder why their levies need to be so high.... Two Proposals: [1] Stop Indexing! ... [2] Offset Premiums with Extra Plan Contributions.... Of course, these suggestions only work if the single-employer program is looked at in isolation."
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| 3. |
The Principal Blog
Nov. 15, 2013
"[1] Plan investment contracts that don't agree with the plan document.... A typical example of where it is a problem is when a plan does not allow loans, but an investment contract does. Since the plan governs, there should be no loans; however, the service provider of the contract may grant a loan since it's allowed under the contract. This poses a compliance problem for the plan.... [2] Contractual procedures that don't agree with plan provisions.... [3] A lack of understanding of fiduciary duty."
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| 4. |
The Principal Blog
Oct. 18, 2013
"Sin #1: Many plans have provisions to force out small amounts.... This becomes a problem with multiple providers involved because all plan assets count.... Sin #2: Most people are familiar with the retirement plan loan limitations of 50% of account balance, or $50,000 if less. Yet not everybody knows that the $50,000 amount must be reduced by the highest outstanding loan balance in the prior 12 months.... A service provider may deal directly with plan participants and grant loans against balances held within a contract, without taking into account other retirement plan assets."
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| 5. |
The Principal Blog
Feb. 5, 2013
"The percent of our participants taking a new loan has declined by 3.5 percent since 2010 and is nearing pre-recession levels. At the highest point, new loans represented only 7.2 percent of participants and just barely over one-percent of total retirement plan assets. It's key to point out that the majority of loans are paid back -- into the participant's account, with interest."
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| 6. |
The Principal Blog
July 22, 2020
"Paradoxically, the answer to coping with a low rate riptide may be to stop fighting and go with the flow. The same rates that are making liabilities expensive are also making debt relatively cheap. So if rates refuse to come up, then maybe sponsors should relax and ride them to improve their DB situation."
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| 7. |
The Principal Blog
Jan. 15, 2020
"Despite an entire decade of stampeding secular bull market returns, a typical pension plan likely has very little to show in the way of funding status improvement. That's because liability returns did some stampeding of their own thanks to gradually declining bond rates throughout the past ten years."
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| 8. |
The Principal Blog
Nov. 18, 2015
"MP-2014 moves away from simpler, less sophisticated improvement scales that change infrequently in favor of: [1] More complex mortality improvement scales that depend heavily on recent data [and] [2] Frequent adjustments to recent data. The combination of these two factors greatly increases the uncertainty of mortality's impact on plan liabilities from year to year. Now sponsors already contending with investment and interest rate volatility are faced with another challenge, one that can be neither avoided nor hedged -- mortality volatility!"
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| 9. |
The Principal Blog
Nov. 1, 2013
"Sin #4: Qualified Domestic Relations Orders (QDROs) ... A typical example is that a QDRO to the plan simply provides an asset split percentage to an alternative payee. However, upon implementation, not all plan assets were taken into account, and one or more provider contracts with respect to that participant were missed. The inadequate QDRO procedures results in a plan violation, but more importantly, it's a violation of a court order, and is patently unfair to the alternate payee."
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| 10. |
The Principal Blog
Aug. 20, 2013
"Detailed employment data is crucial to correctly determining participant retirement benefits. In fact, an employee's entire employment history may be needed to determine their benefits. Without a professional service provider helping plan sponsors manage their participant data, it may not be current or easily accessible.... [P]lan sponsors in an unbundled environment commonly wait until the time of a participant's retirement to collect this information."
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