To give you the best possible experience, this site uses cookies. If you continue browsing, you accept our use of cookies. You can view our privacy policy to find out more about the cookies we use.

Accept
X

To give you the best possible experience, this site uses cookies. If you continue browsing, you accept our use of cookies. You can view our privacy policy to find out more about the cookies we use.

Accept
X

Browsing Defined Contribution

2021 Increases for Retirement Plans, Social Security

The Social Security Administration just announced benefit increases effective in 2021. Current retirees will receive a cost-of-living increase, beginning in January 2021, of 1.3%, reflecting the increase in CPI-W between the 3rd quarter of 2019 and the 3rd quarter of 2020.

Election 2020: 7 Things to Know About Joe Biden’s Tax Plan

With a presidential election coming up next month, tax policy will be one of the issues on the table. And, while it seems reasonable to assume that if President Trump were to be re-elected his tax policy would not change, we also know that if former Vice President Joe Biden gets elected, there will be changes.

Fourth Circuit allows legacy stock claim to proceed

On August 11, 2020, the United States Court of Appeals for the Fourth Circuit handed down its decision in Stegemann v. Gannett, ruling (in a 2-1 holding) that plaintiffs could proceed with their claim that a legacy stock fund in the Gannett 401(k) plan violated ERISA’s fiduciary prudence and diversification requirements.

Annuity Purchase Update: September 2020 Interest Rates

Pensions enjoyed their best month of the year in August, driven by higher stock prices and higher interest rates. The average duration 7 annuity purchase interest rates increased 16 basis points and average duration 15 rates increased 27 basis points since last month as seen in the below graph titled Annuity Purchase Interest Rates.

Agencies release guidance on SECURE Act changes

On September 2, 2020, IRS released Notice 2020-68, providing Q&A guidance on (among other things) issues for qualified retirement plans under the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act). On August 20, 2020, DOL released a proposed rule establishing requirements for (required) registration of “pooled employer plans” (PEPs, also known as open multiple employer plans or Open MEPs) under the SECURE Act, providing a new Form PR for that purpose.

DOL proposes new rules on proxy voting

On August 31, 2020, the Department of Labor released a proposed regulation revising DOL’s rules for the voting (or not voting) of proxies by ERISA plan fiduciaries. The new rule requires that fiduciaries apply an economic cost-benefit analysis to decisions about whether or how to vote proxies and/or engage in shareholder activism that is explicitly stricter than current rules.

Annuity Purchase Update: August 2020 Interest Rates

Pension plans have experienced unprecedented volatility in 2020. While the market volatility has caused the treasury rates to fall dramatically, the spread between treasury bonds and the bonds insurance companies invest in have widened. The widening of this spread would typically tell us that now would be a good time for pension plans to purchase annuities.