May 2015 Archive

IRS provides safe harbor for correcting missed pension contributions

May 28, 2015

Under IRS's Employee Plans Compliance Resolution System, if a 401(k) plan sponsor fails to make a contribution that an employee has elected, ‘correction’ generally requires that the sponsor, make a contribution equal to 50% of the employee's ‘missed deferral.’ In Revenue Procedure 2015-28, released on April 2, 2015, IRS provided two new safe harbors, effectively waiving the 50%-of-missed-deferrals contribution requirement for certain failures related to automatic contributions and certain short duration failures. In this article we describe the new safe harbors, beginning with some background on the issue. Read More

April 2015 Pension Finance Update

May 04, 2015

April brought some good news for pension sponsors in the form of higher interest rates, which pushed pension liabilities down and improved funding ratios for both model plans we track . Plan A enjoyed a 2% improvement last month, while Plan B gained 1%, and both plans are now even on the year through the first four months. Download

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