Biden’s increase in capital gains tax will have a significant impact on retirement savings tax incentives. For those affected by the increase in capital gains tax, the value of saving in a tax qualified retirement plan could nearly double when compared to saving outside of the plan.
We consider briefly the treatment in Khan v. Pentegra of two issues: (1) who is the responsible fiduciary? and (2) for fee comparison purposes, what plans are comparable to a MEP?
Pensions finances held steady in April, as higher stock markets offset lower interest rates.
The focus of this guidance is not sponsor cybersecurity. Rather, the focus is on the responsibility of plan fiduciaries for the cybersecurity of plan providers, a slightly more complicated issue.
For sponsor fiduciaries, a big question for 2021 will be: how will DOL’s policy with respect to fiduciary advice affect the plan, the sponsor, and the plan’s service providers?
Despite the persistence of the pandemic, it is clear that the outlook for plan sponsors is currently trending positively. Equity markets are strong and interest rates are rising. This is leading to improved plan funding statuses and lower annuity purchase prices.
Multiple employer plans (MEPs) are emerging as a provider-based alternative to single employer 401(k) plans, particularly for smaller employers. It seems likely that, as these MEPs accumulate assets, they will begin to be the target of the same sort of fiduciary litigation that has afflicted the single employer 401(k) plan community. In this introductory article…Read More
Pension finances enjoyed another good month in March, capping the best quarter in memory, led by higher interest rates with stock markets playing a supporting role.
The American Rescue Plan Act of 2021 (ARPA) significantly relaxes single-employer defined benefit plan minimum funding requirements. New rules change the incentives for sponsors of underfunded DB plans to fund/not fund. In this article we analyze some of the strategic funding decisions confronting those sponsors.
Single-employer defined benefit plan interest rate stabilization and funding relief included in the American Rescue Plan Act of 2021 (ARPA) presents DB sponsors with a number of short-run decisions. In this article, we identify some of the more significant ones, along with some of the guidance needed with respect to these decisions.