Recent Increases In Retirement Ages Will Be Insufficient To Cover Increased Pension Costs

from Spencer’s Benefits Reports: Life expectancies around the world are rising faster than increases in public pension retirement ages, resulting in larger pension costs as more time is spent in retirement. This was the conclusion of a report by the Organization for Economic Cooperation and Development (OECD) entitled Pensions at a Glance 2011. The report […]

Nearly one-third of employers planning to restore matching contributions in 2011, survey says

After significant cutbacks in employer matching contributions over the past few years, nearly one third (30%) of plan sponsors are planning to reinstate previously eliminated or reduced matching contributions during 2011, according to the 7th annual Retirement Plan Survey, conducted by Grant Thornton LLP, Drinker Biddle & Reath LLP and Plan Sponsor Advisors LLC. In […]

Decline in DB plans due to over-regulation, NIRS research concludes

Private sector companies have trended away from offering defined benefit plans because of an onerous regulatory environment, according to a research brief released by the National Institute on Retirement Security (NIRS). In 2005, only 33% of private sector employees with workplace retirement plans had pensions, yet coverage was at 85% in 1975. The research brief, […]

Payment of wrap fees by IRA/Roth IRA owners not treated as deemed contributions

The payment of wrap fees by IRA and Roth IRA owners to the IRAs’ nonbank custodian for investment planning and advice and related financial services would not be deemed contributions to the accountholders’ IRAs and Roth IRAs, according to IRS Letter Ruling 201104061. A company that was a securities broker/dealer and investment adviser offered IRAs […]

Denial of benefits to former trustee upheld

A former pension plan trustee and plan participant who repeatedly raided the plan’s assets and overstated its value was not entitled to later receive plan benefits in Katzenberg v. Lazzari, according to the U.S. Court of Appeals in New York City (CA-2). A former company owner, who was also the pension plan trustee and a […]

Benefits Update – April 2011

From the editors of CCH’s BENE and BAN products, here are hot topics from recent Employee Benefits Management Directions newsletters as well as recent explanatory updates in Employee Benefits Management. Also included are recent explanatory updates to the Benefits Answers Now product. If you have any comments/suggestions concerning the information provided or the format used, […]

DB plans greatly outperformed DC plans in 2008, but DC plans rebounded in 2009, Towers Watson finds

Rates of return for defined benefit (DB) pension plans outperformed those for defined contribution (DC) plans –predominately 401(k) plans –in 2008 by the widest margin since the beginning of the decade, according to an analysis of more than 2,000 plan sponsors by Towers Watson. However, DC plans outperformed DB plans in 2009, the study found. […]

Benefits Update – March 2011

From the editors of CCH’s BENE and BAN products, here are hot topics from recent Employee Benefits Management Directions newsletters as well as recent explanatory updates in Employee Benefits Management. Also included are recent explanatory updates to the Benefits Answers Now product. If you have any comments/suggestions concerning the information provided or the format used, […]

Benefits Update – February 2011

From the editors of CCH’s BENE and BAN products, here are hot topics from recent Employee Benefits Management Directions newsletters as well as recent explanatory updates in Employee Benefits Management. Also included are recent explanatory updates to the Benefits Answers Now product. If you have any comments/suggestions concerning the information provided or the format used, […]

Benefits Update – January 2011

From the editors of CCH’s BENE and BAN products, here are hot topics from recent Employee Benefits Management Directions newsletters as well as recent explanatory updates in Employee Benefits Management. Also included are recent explanatory updates to the Benefits Answers Now product. If you have any comments/suggestions concerning the information provided or the format used, […]