January 2018 Archive

DB funding and 2017 tax planning

January 28, 2018

With the passage of tax reform in December 2017 corporate tax rates are going down, from a top marginal rate of 35% in 2017 to 21% in 2018. This means that deductions taken in 2017 are generally worth more – as much as 14 percentage points more – than deductions taken in 2018. In this article we review the extent to which defined benefit plan sponsors may accelerate funding and increase their DB funding deduction for 2017, the possibility of a related reduction in PBGC variable-rate premiums, and strategies for managing the risk that such accelerated funding may generate a future plan surplus. Read More

PBGC finalizes regulation revising missing participant program

January 22, 2018

On December 22, 2017, the Pension Benefit Guaranty Corporation published a final regulation revising its missing participant program for terminating defined benefit plans and extending it to terminating defined contribution plans. Read More

Current outlook – 2017 year in review

January 15, 2018

In this article we briefly review some of the retirement savings policy issues we covered in 2017 and provide links to previously published articles providing more detail. We begin with tax reform legislation and developments with respect to DOL’s fiduciary rule. Read More

December 2017 Pension Finance Update

January 02, 2018

Pension funded status dipped in December, but most plans enjoyed improved funded status for the year. Stock markets enjoyed their best year since 2013, but long-term interest rates pushed remorselessly lower and credit spreads narrowed to lows not seen since before the 2008 financial crisis, driving up pension liabilities. Read More

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