October 2015 Archive

Update on DOL Fiduciary Proposal

October 05, 2015

According to Department of Labor Secretary Perez, DOL has received over 330,000 comments on its fiduciary regulation proposal. The DOL website shows 2,631 public comments. In August, DOL held four days of hearings, at which opponents and supporters of the proposal presented their views. In this article we provide an update on the current status of the proposal and consider what changes may be made to it. Read More

Update on Company Stock in Retirement Plans

October 21, 2015

Whitley v. BP (aka In Re: BP p.l.c. Securities Litigation), a stock drop case, is on appeal before the Fifth Circuit Court of Appeals. The case provides a useful review of post-Fifth Third stock drop litigation theories and counter-theories. In this article we begin with a review of the Fifth Third stock drop standard and then consider the arguments being made by plaintiffs in post-Fifth Third stock drop cases and possible counterarguments. Read More

2016 Increases for Retirement Plans, Social Security

October 20, 2015

The Social Security Administration just announced benefit increases, or lack thereof, effective in 2016. For the second time in the past six years, current retirees will not receive a cost-of-living increase in 2016, due to a decline in the CPI-W between the third quarter of 2014 and the third quarter of 2015. These changes will affect benefits for currently retired individuals, as well as those contemplating retirement. Read More

September 2015 Pension Finance Update

October 01, 2015

September was a rough month for pension sponsors, capping a rough third quarter of 2015. Declining stock markets and lower interest rates hurt pension plans last month, eliminating gains from earlier this year for both model pension plans we track. Plan A lost 4% during September and is now down almost 2% for the year, while Plan B dropped 2% last month and is now basically even for the year through September. Read More

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