To give you the best possible experience, this site uses cookies. If you continue browsing, you accept our use of cookies. You can view our privacy policy to find out more about the cookies we use.

Accept
X

Our Perspective

Annuity Purchase Update – November 2021

Despite the persistence of the pandemic, it is clear that the outlook for plan sponsors in 2021 is remaining positive. Generally, plan funding statuses in 2021 have improved and annuity purchase prices have declined.

Retirement Policy Update – November 2021

President Biden signed into law the Infrastructure Investment and Jobs Act (IIJA). The new legislation (among many other things) extends 25-year average interest rate stabilization relief under ERISA’s DB plan minimum funding rules another five years.

Retirement policy provisions of the Build Back Better Act – Update

November 18, 2021 The House of Representatives has delayed a vote on a slimmed down Build Back Better Act (BBBA), sending it to the Congressional Budget Office for a spending “score.” Reports are that, provided the CBO score is within White House estimates, moderate Democrats have agreed to vote for the bill. The BBBA includes…Read More

Retirement income, inflation, and retirement finance

The Consumer Price Index (CPI) has steadily risen throughout the year, with prices in September 2021 5.4% higher than the beginning of the year. This represents, fundamentally, a reduction in the buying power of a (nominal) dollar since the beginning of the year. How does this affect retirees and those saving for retirement? The effect…Read More

DOL proposes new ESG and proxy voting regulation – would significantly change rules adopted by the Trump DOL at the end of 2020

On October 13, 2021, the Department of Labor released a proposed regulation on “Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights” (environmental, social, or governance (ESG) investing and proxy voting), proposing to significantly revise the position taken by the Trump DOL at the end of 2020 on these issues. (We discuss the…Read More

2022 Increases for Retirement Plans, Social Security

The Social Security Administration just announced benefit increases effective in 2022. Current retirees will receive a cost-of-living increase, beginning in January 2022, of 5.9%, reflecting the increase in CPI-W between the 3rd quarter of 2020 and the 3rd quarter of 2021, the largest inflation adjustment in 40 years. In addition, the maximum amount of earnings…Read More

401(k) fee litigation – what must a plaintiff allege to survive a motion to dismiss? Forman v. TriHealth and Hughes v. Northwestern

This term the Supreme Court is considering – for the first time – critical issues in defined contribution plan fee litigation, in Hughes v. Northwestern. In this note we discuss the recent decision (September 24, 2021) by the United States District Court for the Southern District of Ohio, dismissing plaintiffs’ claims in Forman v. TriHealth,…Read More