28 07, 2015

IRS Shuts Down Pension Plan De-Risking Technique of Offering Lump Sums to Retirees in Pay Status

2015-07-28T22:50:14-07:00July 28th, 2015|Categories: Pension Funding|Tags: , , |

In an unexpected development, the Internal Revenue Service (IRS) recently issued Notice 2015-49, which essentially prohibits qualified defined benefit pension plans from offering retirees who are in pay status an option to convert their annuities into immediate lump sums. The notice refers to these offers as “lump sum risk-transferring programs.” Over the past few years, many plan sponsors have made or considered these types of offers as one technique for “de-risking” their qualified pension plans. A lump sum distribution [...]

30 10, 2014

2 senators call for derisking rules

2014-10-30T20:42:30-07:00October 30th, 2014|Categories: Pension Reform|Tags: , |

Senate Finance Committee Chairman Ron Wyden, D-Ore., and Senate Health, Education, Labor and Pensions Committee Chairman Tom Harkin, D-Iowa, want federal regulators to set clear guidelines for employers undertaking pension derisking. In a letter sent Wednesday to agency heads at the Department of Labor, Department of Treasury, Pension Benefit Guaranty Corp. and the Consumer Financial Protection Bureau, Messrs. Wyden and Harkin asked them to consider developing guidance on procedures and the fiduciary duties of plan sponsors. […]

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