August 2012 Archive

Current pension legislative outlook -- August 2012

August 22, 2012

In this article, we briefly cover three topics: (1) decisions with respect to 2011 DB plan contributions and 2012 quarterly contributions; (2) Department of Labor revised guidance on brokerage window disclosure; and (3) the court of appeals decision in Bidwell v. University Medical Center (involving losses in connection with 2008 qualified default investment alternative (QDIA) transfers). Read More

2012 segment rates under MAP-21 released by IRS

August 21, 2012

On August 16, 2012, IRS issued Notice 2012-55, providing new valuation interest rates for 2012, reflecting changes made by the "Moving Ahead for Progress in the 21st Century Act" (MAP-21). In this article, we summarize what the rates would have been for 2012 (if MAP-21 relief had not passed) and what they are (i.e., with the MAP-21 floor). Read More

Pension funding relief: 2012 benefit restriction issues

August 05, 2012

The President has signed the "Moving Ahead for Progress in the 21st Century Act" (MAP-21) into law. The new law includes funding relief for defined benefit plan sponsors (in the form of a floor on the interest rate used to calculate DB liabilities) and an increase in Pension Benefit Guaranty Corporation premiums. We expect to post several articles on the details and application of the new MAP-21 rules. In this article we focus on the treatment of benefit restrictions in 2012. Read More

July 2012 Pension Finance Update

August 01, 2012

July was a month of mixed signals in the financial markets but generally bad news for pension sponsors. Treasury rates declined; however, yields on high-quality corporate bonds dropped even more, reaching record low yields around 4%. Overall, sponsors saw declines of 2%-6% in pension funded status during July, driven by record low corporate bond yields. Download

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