Cash Balance Plans: Eyes Wide Open

As we’ve mentioned in previous posts, there has been a lot of press this year about cash balance plans and how they can provide great retirement deferral opportunities for certain types of plan sponsors: law firms, physicians groups, and small employers. However, there is the occasional case of buyer’s remorse with these plans so I […]Read More… from Cash Balance Plans: Eyes Wide Open

Pension Liability Primer

Here’s a link to a presentation I gave to an accounting firm and some of their clients yesterday. It is geared towards plan sponsors and gives a high-level overview of the basis for calculating pension liabilities. The presentation also reviews and compares various pension liability results so that plan sponsors can better understand what all […]Read More… from Pension Liability Primer

PBGC “Alternative Method” Premium Election Problems

We’ve been following the recent saga where the PBGC is not allowing some employers to correct their 2009 PBGC filings for apparently innocent mistakes. Now some congressional heavyweights are adding their voice to the mix. Under the new post-PPA PBGC filing rules, an employer may make an election to use either the “Standard Method” or […]Read More… from PBGC “Alternative Method” Premium Election Problems

First Look at Proposed GASB Accounting Changes

Over the past couple of years, the GASB (Governmental Accounting Standards Board – they write the public employer accounting rules) has started the process of updating the accounting rules for public employer pension and retiree health plans. They issued an invitation for ideas/comments in 2009 and now we are getting our first sneak peek at […]Read More… from First Look at Proposed GASB Accounting Changes

Plan document restatements for terminating plans

Historically, the IRS has required that plan documents for terminating retirement plans be amended to reflect all legal requirements enacted up through the plan termination date. However, there was some uncertainty as to whether the “new” 5- and 6- year plan restatement rules actually required plan sponsors to: Entirely restate the plan document upon plan […]Read More… from Plan document restatements for terminating plans

Off-Year GASB 45 Accounting

A full valuation (measurement) of GASB 45 liabilities is required every 2 to 3 years, depending on the size of the employer. In the years when actual measurements are performed, the GASB 45 results (ARC, Annual OPEB Cost, and Net OPEB Obligation) are fairly straightforward to calculate. However, there is often confusion about what to […]Read More… from Off-Year GASB 45 Accounting

Public Pension Backlash

I have been saying to my colleagues for the past couple of years that the backlash against public employee pensions was on the horizon. Recent newspaper articles and pension studies confirm that the storm is finally here. With many private employees seeing their retirement savings halved during the recession and their employer-sponsored retirement plans cut […]Read More… from Public Pension Backlash