29 01, 2016

Cities with high unfunded pension liabilities

2016-01-29T17:20:56-08:00January 29th, 2016|Categories: Pension Funding|Tags: |

See 10 cities that have high unfunded pension liabilities, according to a report from Center for State and Local Government Excellence. Local governments that participate in cost-sharing state employee retirement plans face pressure to manage their pension plan liabilities as a result of Governmental Accounting Standards Board standard 68. The new rule requires municipalities participating in chost-sharing plans to report their share of a state’s net pension liabilities. The Center for State and Local Government Excellence measured 92 cities [...]

19 01, 2016

One way to avoid PBGC premiums? Borrow to fund pension liabilities

2016-01-19T23:52:29-08:00January 19th, 2016|Categories: PBGC|Tags: |

Impending premium increases to the Pension Benefit Guaranty Corp. means more sponsors of defined benefit plans should consider borrowing money to fully fund their plans, according to new analysis from Russell Investments. The Bipartisan Budget Act of 2015 insisted new increases in both the per-participant and variable premium rates sponsors pay to PBGC. Sponsors that pay a variable premium do so at a rate based on their plans’ unfunded liability. […]

15 07, 2014

Longer life expectancies raise sponsor liabilities

2014-07-15T20:25:07-07:00July 15th, 2014|Categories: Defined Benefit Plans|Tags: , , , |

Defined benefit pension plan sponsors use mortality tables for a variety of purposes, including calculating lump sum distributions and minimum contribution requirements. The IRS mandates the mortality tables that plan sponsors must use when calculating lump sum distributions and minimum contributions obligations. Currently, plan sponsors must use the RP-2000 mortality table to determine present value lump sum conversions and minimum contributions. The Society of Actuaries published RP-2000, and it is based on data from over 20 years ago. Given that the RP-2000 data [...]

13 06, 2014

Execs eagerly awaiting guidance from PBGC on liability issue

2014-06-13T23:53:54-07:00June 13th, 2014|Categories: Pension Funding|Tags: , , |

PBGC guidance on how agency officials enforce pension liability rules cannot come soon enough for some pension plan sponsors and their advocates. In a June 3 letter, several trade associations representing corporate defined benefit plans asked the Pension Benefit Guaranty Corp.’s board of directors to intervene and drastically curtail the PBGC’s authority in cases where companies experience major operational change. PBGC officials are expected to release their guidance sometime this summer. […]

28 03, 2014

Why Corporate Pension Relief Makes Sense…Permanently

2014-03-28T21:37:17-07:00March 28th, 2014|Categories: Defined Benefit Plans|Tags: , , |

In the debate over whether to extend unemployment benefits, Congress is considering using pension funding relief to help pay the cost. Extension of unemployment benefits may or may not be a good idea, but extension of pension relief certainly is. Defined benefit pensions have faced tremendous pressure in recent years from the one-two punch of the Pension Protection Act (PPA) of 2006 and, more recently, historically low interest rates that were barely imaginable when that legislation was passed. The relief [...]

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