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Browsing Defined Benefit

Annuity Purchase Update – January 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.

2021 Retirement Policy – A Year In Review

Throughout the year, we have followed the performance of the interest rate and securities markets, tracking their effect on retirement finance. As of mid-December, interest rates are up 30-40 basis points for plans with typical duration, and the S&P 500 is up 25% on the year.

DB Plan Terminations – Some Basics

The combination of higher interest rates and a strong stock market have significantly improved pension funding. For some sponsors looking to exit the DB system, this improvement in funding may put them in a position to consider plan termination. In this article we briefly review some of the key issues the project of terminating a plan presents.

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

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