March 2016 Archive

401(k) fee litigation update

March 03, 2016

There has been a series of 401(k) fee lawsuits filed in recent months, following on the success of the plaintiffs in Tibble v. Edison and Tussey v. ABB. In this article we review the sorts of claims plaintiffs are bringing (in cases against the respective fiduciaries of the Anthem Inc., the Chevron Corp., and the Oracle Corp. 401(k) plans) and consider what lessons sponsor fiduciaries can draw from them. Read More

De-risking in 2016

March 25, 2016

In this article we discuss how changes in interest rates, Pension Benefit Guaranty Corporation premiums and mortality tables may affect sponsor decisions to de-risk (or not de-risk) defined benefit plan liabilities in 2016. For purposes of this article, by de-risking we mean paying out a participant’s benefit as a lump sum and thereby eliminating the related liability. Read More

Tatum v. R. J. R Part 3

March 15, 2016

In February 2016, the United States District Court for the Middle District Of North Carolina handed down its (second) decision in Tatum v. R.J. Reynolds Tobacco Company, holding (again) that even though the plan fiduciaries violated “procedural prudence” in selling Nabisco stock held by the R. J. Reynolds defined contribution plan, their decision to do so was “substantively prudent” and therefore did not violate ERISA. Read More

How partners upgraded their cash balance plan

March 28, 2016

Partners of a specialized medical practice were faced with an expensive dilemma when the yearly return on their cash balance plan investments fell quite a bit short of the annual 4% fixed- return target. Not only would partners be required to make up the difference by increasing the current annual contribution by 25%, but the mismatch between the actual return vs. the fixed target return would also upset future budgeting. Read More

How law firm partners upgraded their cash balance plan

March 28, 2016

Partners of a law firm were faced with an expensive dilemma when the yearly return on their cash balance plan investments fell quite a bit short of the annual 4% fixed- return target. Not only would partners be required to make up the difference by increasing the current annual contribution by 25%, but the mismatch between the actual return vs. the fixed target return would also upset future budgeting. Read More

Why we're running the Paris Marathon to fight Multiple Sclerosis

March 25, 2016

Watch Brian share why he is so excited to once again run with this team and support the MSIF. We’re proud to have Brian Sapp, retirement consultant in our Denver office, running with our international partners of Abelica Global to support the work of the Multiple Sclerosis International Federation (MSIF). On April 3, 2016 Brian will represent October Three in the Schneider Electric Paris Marathon for the second straight year. Read More

Running in Paris to Benefit Multiple Sclerosis

March 11, 2016

For the second consecutive year, Abelica Global, a worldwide network of independent actuarial firms present in over 65 countries, is sponsoring a team of seven runners in the 40th annual Schneider Electric Paris Marathon. The runners come from four of AG’s partner firms in France, Canada, Belgium, and the United States. Brian Sapp, a retirement consultant from October Three’s Denver, Colo. office, will run as the United States’ representative. Fundraising will benefit the Multiple Sclerosis International Federation. Download

February 2016 Pension Finance Update

March 01, 2016

Following a difficult January, pension woes continued in February, marked by weak stock markets and falling interest rates. Both model pension plans we track lost ground again last month: Plan A fell 2% in February and is now down more than 8% this year, while Plan B dropped 1% last month and 4% total in the first two months of the year Read More

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