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Browsing Uncategorized

Senate Finance Chair releases outline of broad, bipartisan retirement legislation

On June 17, 2022, Senate Finance Committee Chair Ron Wyden (D-OR) released an outline of the bipartisan Enhancing American Retirement Now (EARN) Act. The Committee is expected to take up this legislation beginning the week of June 20. The EARN Act, together with the Retirement Improvement and Savings Enhancement to Supplement Healthy Investments for the…Read More

Retirement income and inflation – April 2022 update

Until 2021, the main drivers of retirement finance/retirement income were interest rates and asset performance. The other variable affecting nominal performance, mortality, has been (and is expected to continue to be) relatively stable.

Democrats introduce mandatory 401(k) plan reenrollment legislation

On February 18, 2022, Senator Kaine (D-VA) (in the Senate) and Representative Manning (D-NC) (in the House) introduced the Auto Reenroll Act of 2022, a bill that would require 401(k) plans taking effect in 2025 or after to provide for a 3-year reenrollment of non-contributing participants in order to take advantage of the automatic enrollment testing safe harbor, allow certain “permissible withdrawals,” or assert state preemption for default contributions.

Annuity Purchases for Retirees with Small Benefits – Guaranteed Savings 2022

Executive Summary The cost to maintain a defined benefit pension plan has skyrocketed.   The primary reason is the premiums paid to the Pension Benefit Guaranty Corporation (PBGC).  Most plan sponsors have reduced their headcounts in recent years to effectively manage these premium overhead costs.  The first wave focused on lump-sum windows for terminated vested participants….Read More

The 2021 PBGC Premium Burden Report

plan sponsors are paying PBGC Variable Rate Premiums and of those that still are, fewer sponsors are leaving money on the table than at any previous year since we began publishing the PBGC premium report

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