March 2015 Archive

NERA Response to Administration conflicted advice proposal

March 24, 2015

In this article we review the paper, Review of the White House Report Titled "The Effects of Conflicted Investment Advice on Retirement Savings," by National Economic Research Associates, for Securities Industry and Financial Markets Association, released on March 16, 2015. Read More

Reducing PBGC variable-rate premiums: contribution timing

March 30, 2015

Pension Benefit Guaranty Corporation variable-rate premiums have been going up dramatically. The simple way to think about this premium is as a tax on underfunding. That tax went from 0.9% in 2013 to 2.4% in 2015. In 2016 it will be 2.9% or 3.0%, more than tripling in three years. This increase has led sponsors to look for ways to reduce these premiums. In this article we review the strategies for reducing PBGC variable-rate premiums available to sponsors. We then focus on one specific strategy – accelerating (by one to five months) 2015 funding. Read More

Letter from our president

March 30, 2015

When we first opened our doors five years ago, October Three was simply a vision to better the retirement industry. Backed by decades of experience in the defined benefit space, we have since watched an entire company take shape. Looking over the years, I am grateful for the many opportunities that spurred our growth. We are delighted to now be moving into our new home on the Willis Tower’s 83rd floor. Read More

Paris Marathon with Abelica Global to support Multiple Sclerosis

March 25, 2015

On April 12th, a member of our staff will be running the Schneider Electric Paris Marathon as part of the Abelica Global team to benefit Multiple Sclerosis research. AG will be sponsoring a team of nine runners selected from their member firms, which represents five countries – France, Channel Islands, Canada, Belgium and United States. Read More

Actuaries From Around the World Running To Fight Multiple Sclerosis

March 16, 2015

October Three is running in the Schneider Electric Paris Marathon on April 12, 2015, in Paris, France as a part of the Abelica Global team effort to benefit the Multiple Sclerosis International Federation. Download

GAO issues de-risking report

March 13, 2015

On February 26, 2015, the Government Accountability Office issued a report: Participants Need Better Information When Offered Lump Sums That Replace Their Lifetime Benefits. The report provides a useful summary of the current state of de-risking, focusing on transactions in which participants are offered a ‘lump sum window’ – a limited-time offer to certain participants to take their benefit as a lump sum. In this article we review the report. Read More

Administration support for new conflict of interest rule

March 12, 2015

On February 23, 2015, the Department of Labor sent to the Office of Management and Budget a proposal for a "new conflict of interest rule." The new proposal is not publicly available and won't be until OMB completes its review. But the statements, reports, FAQs, fact sheets, and the President's speech do tell us a number of things. In this article, based on that information, we discuss (1) the Administration's view of the importance of this proposal, (2) how it intends to support its adoption and (3) what (in bare outline) the proposal may look like. Read More

2015 Pension de-risking

March 11, 2015

In this article we discuss how changes in interest rates, Pension Benefit Guaranty Corporation premiums, the new Society of Actuaries mortality tables and regulatory developments may affect plan sponsor decisions to de-risk (or not de-risk) defined benefit plan liabilities in 2015. Read More

Final funding notice regulation released by DOL

March 10, 2015

On January 30, 2015, the Department of Labor released a final regulation on the content and form of the annual funding notice generally required to be provided by plan administrators of defined benefit plans. The regulation is effective for plan years beginning on or after January 1, 2015. In this article we review the final regulation. Our purpose is to provide a general overview of it; plan administrators preparing funding notices will want to consult the regulation itself. Read More

February 2015 Pension Finance Update

March 04, 2015

During February, pension sponsors reversed losses they suffered in January, as both stocks and interest rates moved higher on the month. Both model plans we track gained ground last month – Plan A improved 6%, while Plan B gained 3% – leaving both plans essentially even for the year through February. Download

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