DC Plans – CORPaTH

7 06, 2023

NIRS to hold webinar on Alaska’s experience moving public employees from pensions to defined contribution plans

CORPaTH2023-06-07T13:00:40-07:00June 7th, 2023|Categories: Retirement|Tags: alaska, DB Plans, DC Plans|

Source: National Institute on Retirement Security Please join us for a webinar on Monday, June 12, 2023, at 2:00 PM ET, Alaska's Experience Moving Public Employees from Pensions to Defined Contribution Plans. Click here to register. In 2005, Alaska closed its two statewide defined benefit pension plans for teachers and public employees. Since July 1, 2006, all new Alaska hires participate in a defined contribution plan rather than a pension plan. The retirement plan change has had the unintended [...]

24 05, 2023

DC Plan Sponsors Should Pay Attention to Increased Litigation, Low Retirement Confidence

CORPaTH2023-05-24T15:21:15-07:00May 24th, 2023|Categories: 401(k)|Tags: DC Plans, litigation|

By Remy Samuels Source: Plan Sponsor Increased litigation; regulatory and legislative changes; and a lack of retirement confidence among participants were common themes observed by defined contribution plan sponsor panelists on a recent Mercer webinar reflecting on key trends in the first quarter of 2023. Roughly 43 lawsuits, noted with activity, have been filed this quarter against retirement plans, including 14 settlements that totaled about $55.3 million, said Rhonda Berg, a senior principal and defined contribution consultant at Mercer [...]

25 01, 2022

DC Plans: Cost Savings After All?

CORPaTH2022-01-25T10:59:49-08:00January 25th, 2022|Categories: 401(k)|Tags: DC Plans|

By John Iekel Source: American Society of Pension Professionals & Actuaries Defined contribution plans have outstripped defined benefit plans in number of accounts, assets, employers offering them and participants. But a recent study that examines the cost of both kinds of plans challenges the notion that bigger is synonymous with better. In “A Better Bang for the Buck 3.0: Post-Retirement Experience Drives Pension Cost Advantage,” National Institute for Retirement Security (NIRS) Executive Director Dan Doonan and Pension Trustee Advisors [...]

5 05, 2021

Variable Benefit Plans a Solution for All Types of Plan Sponsors

CORPaTH2021-05-13T08:05:26-07:00May 5th, 2021|Categories: Retirement|Tags: DB Plans, DC Plans, variable benefit plans|

By Rebecca Moore Source: Plan Sponsor Plan sponsors and others in the retirement plan industry have been showing an increased interest in new defined benefit (DB) plan designs that minimize cost volatility and/or provide risk sharing. During a recent webinar on the subject, Rachel Barnes, a member of the pension committee at the American Academy of Actuaries, noted that many corporate plan sponsors have been taking steps to transfer or eliminate their traditional DB plan obligations. While some have [...]

21 04, 2021

DC Plans More Vulnerable to ERISA Litigation Than DB Plans

CORPaTH2021-05-13T08:05:23-07:00April 21st, 2021|Categories: ERISA|Tags: DB Plans, DC Plans, erisa|

Source: AI-CIO.com Defined contribution (DC) retirement plans are far more susceptible to Employee Retirement Income Security Act (ERISA) lawsuits than defined benefit (DB) plans, lawyers argue in a lawsuit filed against The Wesco Distribution Inc. Retirement Savings Plan. “The potential for imprudence is much greater in defined contribution plans than in defined benefit plans,” said the lawsuit. The complaint, which alleges Wesco neglected its fiduciary duties by allowing excessive fees, said that companies with DC plans are much more [...]

24 03, 2021

Too embarrassed to ask: what’s the difference between a defined benefit pension and a defined contribution pension?

CORPaTH2021-03-24T14:53:59-07:00March 24th, 2021|Categories: Defined Benefit Plans|Tags: DB Plans, DC Plans|

A pension is simply a tax-efficient savings vehicle, or “tax wrapper”, that allows you or your employer to invest for your long-term future. For most of us, the main goal of a pension is to provide us with money to live off in later life, usually once we’ve retired from full-time employment. The rules governing pensions can seem confusing, particularly as the government fiddles with them at almost every other budget. But at the most basic level, there are [...]