After years or relatively low and stable inflation, the 2022 retirement plan benefit limits just announced in IRS Notice 2021-61 stand apart with a notable increase due to the higher inflation seen over the last few months. Broadly speaking, the limit increases will lead to higher qualified plan benefits for highly-paid employees while increasing tax-deferred […]Read More… from What’s the Effect of 2022 Retirement Plan Limits?
By now most single-employer pension plan sponsors know of the significant minimum required contribution relief in the American Rescue Plan Act of 2021 (ARPA). These include (1) extending the length of time for paying down unfunded liabilities and (2) adjusting the interest rates used to calculate liabilities and payment amounts. However, the default timing of […]Read More… from ARPA Pension Funding Relief – Don’t Forget the Elections!
IRS Notice 2020-79 just announced the 2021 retirement plan benefit limits and there are minimal changes since 2020. However, even static IRS limits have implications for employer-sponsored retirement plans. Here is a table of the main limits, followed by our analysis of the practical effects for both defined contribution (DC) and defined benefit (DB) plans. […]Read More… from What’s the Effect of 2021 IRS Retirement Plan Limits?
IRS Notice 2019-59 just announced the 2020 retirement plan benefit limits and there are many changes since 2019. What does it all mean for employer-sponsored retirement plans? Here is a table of the main limits, followed by our analysis of the practical effects for both defined contribution (DC) and defined benefit (DB) plans. […]Read More… from What’s the Effect of 2020 IRS Retirement Plan Limits?
Now that the first round of GASB 75 OPEB valuations are complete (and some are already onto their 2nd or 3rd rounds), it’s time to take a quick look at some common actuarial pitfalls. These are gotchas that employers and auditors may not be expecting, or notice, when reviewing a GASB 75 report. Unsupported actuarial […]Read More… from Top 4 GASB 75 OPEB Reporting Pitfalls
Lump sum windows and other pension risk transfer strategies continue to be popular among many defined benefit (DB) pension plan sponsors. Paying lump sums to terminated vested participants can reduce long-term plan costs and risks by permanently eliminating these liabilities. However, the cost of the lump sum payments is heavily influenced by the underlying interest […]Read More… from Pension Lump Sums Less Expensive in 2019
IRS Notice 2018-83 just announced the 2019 retirement plan benefit limits, and there are many changes since 2018. What does it all mean for employer-sponsored retirement plans? Here is a table of the primary benefit limits, followed by our analysis of the practical effects for both defined contribution (DC) and defined benefit (DB) plans. Qualified […]Read More… from What’s the Effect of 2019 IRS Retirement Plan Limits?
The IRS Notice 2017-64 just announced the 2018 retirement plan benefit limits, and there are many changes since 2017. What does it all mean for employer-sponsored retirement plans? Below is a table summarizing the primary benefit limits, followed by our analysis of the practical effects for both defined contribution (DC) and defined benefit (DB) plans. […]Read More… from What’s the Impact of 2018 IRS Retirement Plan Limits?
How quickly things change! A month ago we were anticipating very expensive 2017 lump sum costs for defined benefit (DB) pension plans due to continually low interest rates. However, rates have been on a strong rebound since the election and now 2017 lump sums are looking much more affordable. The IRS recently released the November […]Read More… from 2017 Pension Lump Sums Are Looking More Affordable
Many defined benefit (DB) plan sponsors are aware that interest rates dropped significantly in the first half of 2016 but staged a remarkable rise since the November election. Combined with relatively strong equity returns, 2016 year-end pension disclosures may not be as bad as expected 6 to 8 weeks ago. Discount Rate Analysis Using the […]Read More… from 2016 Pension Accounting Preview: a Positive Outlook
