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.
As interest rates continue to rise, the savings from purchasing annuities will also rise.
The nonenforcement policy only applies to the Department of Labor, and, theoretically, a private lawsuit could still cite the regulations in support of a fiduciary claim.
On March 11, 2021, President Biden signed into law the American Rescue Plan Act of 2021 (ARPA). ARPA includes significant single-employer defined benefit plan interest rate stabilization/funding relief.
On March 1, 2021, the Senate Parliamentarian ruled that the pension provisions of the American Rescue Plan Act of 2021 (ARPA) do not violate the “Byrd Rule” and therefore may be included in this current round of budget reconciliation legislation.
As of the end of February 2021, market interest rates are up significantly since the beginning of the year. For many plans, this will mean that 2021 lump sums are valued at interest rates that are lower than current market rates.
Pension finance enjoyed its best month in more than three years in February, buoyed by higher stock prices and higher interest rates.
In this article we provide our standard analysis of de-risking: how changes in interest rates and Pension Benefit Guaranty Corporation premiums may affect sponsor decisions to de-risk (or not de-risk) defined benefit plan liabilities in 2021.