22 08, 2017

Corporate Employers Flee Pensions With Gap Topping $375 Billion

2017-08-22T15:51:12-07:00August 22nd, 2017|Categories: Defined Benefit Plans|Tags: , |

The vast majority of S&P 500 companies don’t have enough money set aside to meet all their obligations to current and future retirees. There’s a total gap of at least $375 billion for the 200 largest plans. This is how they got here. […]

12 08, 2016

Why Pension Reform Still Has a Long Way to Go

2016-08-12T21:07:06-07:00August 12th, 2016|Categories: Pension Reform|Tags: |

Next week marks the 10th anniversary of a landmark federal law with a hopeful name – the Pension Protection Act of 2006. Has the law lived up to its name? The anniversary is an apt time to consider changes still needed to improve the retirement security of American workers. The track record of the Pension Protection Act (PPA) is mixed. The law imposed more stringent funding requirements for defined benefit pensions. It also spurred important improvements in workplace 401(k) [...]

8 08, 2016

Unforeseen consequences one legacy of the Pension Protection Act

2016-08-08T20:34:26-07:00August 8th, 2016|Categories: PBGC|Tags: , |

Like many pension-related laws, the Pension Protection Act that passed a decade ago was designed to address a crisis. At the time, underfunded pension plans were threatening the financial stability of the Pension Benefit Guaranty Corp. But while the act did help strengthen the federal agency, it also had the unintended effect of discouraging defined benefit plan sponsors and hastening the switch to defined contribution plans, observers say. “It was sold on the basis that we were going to [...]

21 01, 2016

DC Plan Stats Show Effect of PPA

2016-01-21T23:17:20-07:00January 21st, 2016|Categories: Pension Reform|Tags: , |

The 2006 Pension Protection Act (PPA) and the Department of Labor’s (DOL’s) fee disclosure requirements issued in 2011 and 2012 tied as the top-ranking event influencing the management of defined contribution (DC) plans, according to Callan’s 2016 Defined Contribution Trends report. The PPA set the stage for wide adoption of automatic features in DC plans and made Roth contributions permanently available for DC plan participants, among other things. Callan says the influence of the PPA has resulted in 61% [...]

5 12, 2014

House votes to extend multiemployer pension provisions

2014-12-05T00:08:33-07:00December 5th, 2014|Categories: Retirement|Tags: , |

Multiemployer pension provisions in the Pension Protection Act of 2006 set to expire Dec. 31 would gain another year in a tax extension passed by the House Wednesday. H.R. 5771, the “Tax Increase Prevention Act of 2014,” which extends more than 50 expired business and individual tax breaks, has to be scheduled for a vote in the Senate, which does not have its own package, before Congress adjourns Dec. 11. […]

19 06, 2014

How do you solve a problem like TDFs?

2014-06-19T23:55:28-07:00June 19th, 2014|Categories: Retirement|Tags: , |

Really. You’ve got to admire their effort. But wasn’t it the ol’ Gipper who once said the nine scariest words in the English language are “I’m from the government and I’m here to help”? In 2006, Congress passed the Pension Protection Act. One of its objectives was to address a huge problem with the way people invested their long-term retirement money. Too many workers placed their assets in short-term investments. Congress, with probably every legitimate financial advisor backing it, [...]

7 05, 2014

Pension Plan Amendment Pursuant to PPA Doesn’t Violate Fifth Amendment, Court Says

2014-05-07T17:30:31-07:00May 7th, 2014|Categories: Pension Funding|Tags: , , |

A multiemployer pension plan in critical status didn’t violate provisions of the U.S. Constitution when it was amended to eliminate an early-retirement subsidy as part of a rehabilitation plan filed pursuant to the Pension Protection Act, the U.S. District Court for the Eastern District of Washington ruled. In a May 2 opinion, Judge Lonny R. Suko claims by a pair of plan participants that the amendment–that eliminated an early-retirement scheme whereby a participant could receive full benefits before reaching [...]

10 04, 2014

President Obama Signs Co-op Pension Bill

2014-04-10T21:36:03-07:00April 10th, 2014|Categories: Pension Reform|Tags: , , |

A bill that increases stability and reduces cost pressures for co-ops in the NRECA Retirement Security Plan is now law. President Obama signed the Cooperative and Small Employer Charity Pension Flexibility Act into law on April 7. The measure passed the House of Representatives by voice vote on March 24, after unanimously passing the Senate on Jan. 28. The law provides a permanent exemption for not-for-profit sponsors of multiple-employer pension plans, like electric co-ops in the RS Plan, from [...]