On October 20, 2023, the IRS published final regulations under Section 430(h) of the Code regarding the mortality tables to be used by most qualified defined benefit plans for valuation dates on or after January 1, 2024. Key changes from the prior regulations are summarized below. The annual static mortality tables from the regulation will also be used for purposes of … Read More
ARPA Includes Key Funding Relief Provisions
Last week saw the American Rescue Plan Act of 2021 (ARPA) signed into law. In addition to providing additional COVID-related stimulus through direct payments and extended unemployment benefits, the law has funding relief provisions for single-employer pension plans. The law most notably impacts two areas: Shortfall AmortizationsThe period for shortfall amortizations is permanently extended from 7 to 15 years, effective … Read More
DOL Announces New Electronic Disclosure Rule for Retirement Plans
On May 21, 2020, the Department of Labor (DOL) announced its final rule on electronic disclosures for retirement plans. The final rule is an alternative method of furnishing electronic disclosures and does not replace the 2002 Safe Harbor Rules, nor does it apply to health plan disclosures. Under the new rule, plan sponsors may send electronic disclosures to plan participants, … Read More
SECURE Act Signed into Law
Last week saw the U.S. Senate pass an omnibus spending bill, which President Trump signed into law on Friday. Attached to this bill was the Setting Every Community Up for Retirement Enhancement Act (SECURE Act), which would make changes to both employer-sponsored retirement plans and individual retirement accounts, most notably: Expand the ability of employers to partner together to offer … Read More
IRS Announces Updates to 2020 Retirement Plan Limits
Each year the IRS provides cost of living adjustments to benefit plan limits to assist sponsors in administering their plans. On November 6, the IRS released Notice 2019-59, which provided 2020 limits for retirement plans. Information on the release can be found here. Some of the key limits are shown below, along with the increase in the Social Security taxable … Read More
SOA Mortality Tables Finalized for Private-Sector Retirement Plans
In May 2019, the Society of Actuaries (SOA) released an exposure draft of the Pri-2012 Mortality Tables for private-sector retirement plans. These new tables were based on data collected for 2010 – 2014, with a central year of 2012. The Pri-2012 tables update the RP-2006 tables (the mortality table basis for the RP-2014 Mortality Tables that are currently in use). … Read More
SOA Releases Mortality Improvement Scale MP-2019
When the Society of Actuaries (SOA) released the RP-2014 mortality table in 2014, they included mortality improvement scale MP-2014. The purpose of this scale is to reflect mortality improvement into the future, since one would expect future mortality rates to be lower with further advances in health and medicine. A practice was then started to update this improvement scale annually … Read More
PBGC Releases Latest Projections
The Pension Benefit Guaranty Corporation (PBGC) released its fiscal 2018 projections report in August 2019. The PBGC operates insurance programs for Single-Employer and Multiemployer pension plans and this annual report provides projections of the financial status of each program. The Single-Employer program is the healthier of the two programs. In 10-year projections with 5,000 alternative economic paths, the program was … Read More
New GASB Exposure Draft Would Alter 457 Plan Reporting
The Governmental Accounting Standards Boards (GASB) released a new exposure draft in June 2019 entitled “Internal Revenue Code Section 457 Deferred Compensation Plans That Meet the Definition of a Pension Plan and Supersession of GASB Statement 32.” While a brief statement, the reporting requirements for 457 plans could be impacted. According to the statement, 457 plans have evolved since the … Read More
New SOA Mortality Tables for Private Sector Retirement Plans
Last month (May 2019), the Society of Actuaries (SOA) released an exposure draft of the Pri-2012 Mortality Tables for private-sector retirement plans. These new tables are based on data collected for 2010 – 2014, with a central year of 2012. The Pri-2012 tables update the RP-2006 tables (the mortality table basis for the RP-2014 Mortality Tables that are currently in … Read More
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