As mentioned in our July lump sum interest rate post, many defined benefit (DB) plan sponsors are considering lump sum payouts to their terminated vested participants as a way of “right-sizing” their plan. The ultimate goal is to reduce plan costs and risk. The IRS recently released the November 2013 417(e) rates, which will be […]Read More… from Preview of 2014 Lump Sum Interest Rates
Each year, defined benefit (DB) pension plan sponsors must pay pension insurance premiums to the Pension Benefit Guaranty Corporation (PBGC). In light of large PBGC premium rate increases in 2013 and future years, plan sponsors should carefully evaluate their options before proceeding with their next premium payment. Background There are two components to annual PBGC […]Read More… from Evaluating PBGC Premium Options in Advance of Big Increases
The “Moving Ahead for Progress in the 21st Century” (MAP-21) legislation signed into law last week included significant pension law changes. These included good news and bad news for sponsors of defined benefit pension plans. The good news is that MAP-21 provided some relief from the historical low interest rate environment. The funding segment interest […]Read More… from MAP-21: Good News & Bad News for Pension Plans
