December 2017 Archive

Congress passes tax bill, President expected to sign

December 21, 2017

On December 19, 2017, the House and then the Senate approved HR 1, the “Tax Cuts and Jobs Act.” (Because of Senate procedural rules, the bill as passed by the Senate was, in three minor respects, different from the House bill and was sent back to the House for re-approval on December 20, 2017.) President Trump is expected to sign the bill into law Read More

CenturyLink complaint claims large cap multi-manager fund a “defective design”

December 21, 2017

On November 30, 2017, a participant in the CenturyLink 401(k) plan filed a complaint with the United States District Court for the District of Colorado claiming that the inclusion of a multi-manager large cap fund in the plan’s fund menu was per se imprudent. In this article we review the complaint and some of the issues it raises. Read More

Splitting pension plans can reduce PBGC variable-rate premiums

December 20, 2017

In this article we consider a strategy for reducing PBGC variable-rate premiums – the split-up of a plan (which we’re going to call the ‘combined plan’) into a plan that covers participants subject to the variable-rate premium headcount cap (the ‘HCC plan’) and a plan that covers all other participants (the ‘non-HCC plan’). Such a strategy may reduce PBGC variable-rate premiums in two ways. First, it can be used to maximize the effect of the headcount cap. And, second, it may allow the sponsor to make contributions that reduce variable-rate premiums where the headcount cap would otherwise prevent that result. Read More

November 2017 Pension Finance Update

December 01, 2017

Stock markets brought more good news to pension sponsors in November, with a continuation of the remarkably steady bull market of 2017. Both model plans we track saw improvement in funded status last month: traditional Plan A improved 1% and is now up almost 5% for the year, while the more conservative Plan B improved a fraction of 1% in November ahead almost 2% through the first eleven months of 2017. Read More

Happy Holidays

December 14, 2017

As the holiday season approaches, we take a step back and are reminded of what truly matters most in life…people. Here at October Three everything we do revolves around people and relationships. Read More

Share this with your Colleagues:

Latest News:

  • Budget deal retirement savings provisions - Read More
  • January 2018 Pension Finance Update - Read More
  • DB funding and 2017 tax planning - Read More
  • PBGC finalizes regulation revising missing participant program - Read More
  • Current outlook – 2017 year in review - Read More
  • Cash Balance Plan Design - Read More
  • ReDefined Benefit Plan™ - Read More