February 2015 Archive

Exploring hybrid plans with Thomson Reuters' Practical Law

February 18, 2015

Hybrid plans are gaining attention as more sponsors recognize the advantage of designing DB plans that look and act like DC plans. In collaboration with October Three, Thomson Reuters’ Practical Law published a comprehensive guide to market-based hybrid plans, also known as Market Return Cash Balance plans. The article investigates the merits of these much talked about plans, to provide a thorough analysis of the facts. Download

Obama Administration 2016 budget: Retirement Provisions

February 12, 2015

On February 2, 2015 the Administration released its 2016 fiscal year budget. The 2016 budget includes a number of proposals affecting retirement plans. In this article we briefly review those proposals. Read More

2015 retirement savings proposals from the Obama administration

February 11, 2015

The Administration's middle class tax initiative, announced by President Obama in his 2015 State of the Union speech, includes several retirement savings-related proposals. In connection with the State of the Union speech, the White House released a fact sheet describing the Administration's proposals. In this article we briefly review those that relate to retirement savings. Read More

The Illinois Secure Choice Savings Program and the DOL myRA letter

February 10, 2015

On January 4, 2015, Illinois Governor Pat Quinn signed into law the Illinois Secure Choice Savings Program Act. Illinois thereby became the second state (after California) to enact legislation providing for a state-sanctioned retirement program for private sector employees. In December 2014, the Department of Labor provided the Department of the Treasury with a letter discussing the applicability of ERISA to the Administration's myRA program. In this article we review both new Illinois law and the DOL myRA letter and the issues they present for sponsors. Read More

GAO issues 401(k) cash-out report

February 09, 2015

In December 2014, the Government Accountability Office released a report, 401(K) Plans – Greater Protections Needed for Forced Transfers and Inactive Accounts. The report is generally critical of the current procedures for ‘forced’ 401(k) plan rollovers – generally transfers (sometimes called ‘cash-outs’) of balances of $5,000 or less to an IRA without the participant's consent. In this article we review the report and the GAO's recommendations. Read More

2015 Retirement Policy Outlook

February 06, 2015

In this article we review key retirement benefits issues that policymakers will focus on in 2015. We begin with a review of the changes in key Congressional policymaker positions. Read More

January 2015 Pension Finance Update

February 05, 2015

Pension sponsors suffered losses in January, due to continued falling interest rates. At month-end, the 30-year Treasury yield was a record low 2.25%. Both model plans we track lost ground last month – Plan A dropped 6% in January, while Plan B slipped 2%. Download

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