February 2016 Archive

New in the 2017 budget: no single employer PBGC premium increase; open MEPs

February 18, 2016

On February 9, 2016, the Administration released its 2017 fiscal year budget. The new budget includes a number of proposals affecting retirement plans – most are carry-overs from prior years, but two are new: a change in the Administration’s position on Pension Benefit Guaranty Corporation single employer premiums and an “open MEP” proposal. Read More

Candidates tax proposals and 401(k) “tax appeal” Part 3 – Democratic proposals

February 09, 2016

In our prior articles in this series we discussed current 401(k) tax benefits generally and how they would be affected by Republican Presidential candidates’ tax reform proposals. In this article we discuss how the tax reform proposals of the Democratic Presidential candidates, former Secretary of State Hillary Clinton and Senator Bernie Sanders (I-VT), would affect 401(k) tax benefits. Read More

Candidates tax proposals and 401(k) “tax appeal” Part 2 – Republican proposals

February 04, 2016

In our first article in this series we discussed current 401(k) tax benefits. In this article we discuss how the proposals of three Republican candidates – Mr. Donald Trump and Senators Marco Rubio (R-FL) and Ted Cruz (R-TX) – would affect those benefits. Read More

Candidates tax proposals and 401(k) “tax appeal” Part 1

February 01, 2016

In the primary campaign, on both the Republican and Democratic side, there has been a lot of talk about changing our current income tax system – everything from “closing loopholes” to abolishing the IRS and switching to a “business flat tax” that some have compared to a value added tax. In this article we review the tax benefits provided by the current system. Read More

Anthem sued over DC fee arrangements

February 09, 2016

Participants in the Anthem 401(k) Plan (the Plan) have sued plan fiduciaries, claiming that the plan (1) overpaid for investment and recordkeeping services and (2) imprudently included a money market fund, and not a stable value fund, in the plan’s fund menu. Plaintiffs claim, among other things, that inclusion of low-fee (e.g., 4 basis points) passive funds in the Plan’s fund menu violated ERISA because there was an even lower-fee alternative available. In this article we review plaintiffs’ complaint. Read More

October Three Consulting Opens New Office in Jacksonville

February 25, 2016

October Three Consulting, a Chicago-based actuarial firm specializing in the design and administration of retirement plans, is expanding their pension plan administration services to a new office in Jacksonville, Fla. Effective immediately, October Three’s eighth office will handle call center, case management, fulfillment and distribution processing responsibilities for their corporate clients. These operations will be run by pension experts using the firm’s proprietary administrative system, the O3 Daily Platform. Download

January 2016 Pension Finance Update

February 01, 2016

For the second straight year, pension sponsors suffered a significant setback in January, due to a combination of declining stock markets and lower long-term interest rates. Both model pension plans we track were down last month: Plan A dropped more than 6%, while Plan B lost almost 3%. Read More

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