June 2016 Archive

Corporate tax reform and retirement savings tax policy

June 23, 2016

One element of tax reform for which there seems to be some bipartisan support is “doing something about the corporate tax.” Thus, even if after the November election we continue with a divided government, action on corporate tax reform is possible. For many corporate retirement plan sponsors, interest in reforming the current system of corporate taxation vastly outweighs interest in changes to retirement savings tax policy. Changes in corporate tax policy are, however, likely to secondarily affect the retirement savings “tax deal” – the attractiveness of saving in a tax qualified retirement plan – and we discuss those secondary effects in this article. While not all businesses are incorporated and taxed as a corporation, the general policy discussion might inform us of changes to the taxation of other forms of a business, like a partnership. Read More

Candidates’ tax proposals and retirement savings tax benefits

June 15, 2016

We are now (more or less) down to two main Presidential candidates: former Secretary of State Hillary Clinton and Mr. Donald Trump (hereafter, “Clinton” and “Trump”). In this article we discuss the tax proposals of each candidate and how they would affect retirement savings policy. Read More

Current retirement savings policy outlook – June 2016

June 06, 2016

In this retirement savings outlook we review challenges to the Department of Labor’s Conflict of Interest rule, the status of IRS’s review and adoption of new mortality tables, bipartisan legislation recently introduced to remove PBGC premiums from the Congressional budget, and recent plan reformation litigation. Read More

Fee litigation: sponsor fiduciary vulnerabilities

June 01, 2016

In this article we review the areas of 401(k) sponsor-fiduciary practice that are current or emerging targets for plaintiffs’ litigators. We include in our discussion 401(k) fee suits recently filed against BB&T (Smith v. BB&T Corporation) and Fidelity (Fleming v. Fidelity Management Trust Company). Read More

Verizon-CWA Pact Freezes Mortality Tables To Preserve Participants' Lump Sum

June 09, 2016

(Reprinted From Bloomberg BNA) Verizon Communications Inc. employees returning to work under a tentative contract can take comfort that innovative bargaining has likely preserved their right to generous pension lump-sum payouts. Overall, the lump-sum payouts that Verizon will offer plan participants under the new contract represent a "small windfall" for retirees, John Lowell, pension consultant for October Three in Atlanta, told Bloomberg BNA June 1. Download

Our UK Partner is winner of 4 pension awards

June 02, 2016

We are proud to congratulate our partner in the United Kingdom, Hymans Robertson, on their tremendous success. Hymans Robertson was recently recognized in four categories at this year’s UK Pensions Awards: Read More

May 2016 Pension Finance Update

June 01, 2016

Higher interest rates and higher stock prices improved pension finances modestly in May. Both model pension plans we track gained a bit of ground last month. Plan A improved 1% in May, but remains down more than 6% so far in 2016, while Plan B picked up less than 1% last month, but is still down 3% year to date. Read More

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