John Iekel

Retirement ‘a Daunting Challenge,’ Report Says

By John Iekel 9/14/2020

In recent years, preparing for retirement has been an increasing burden—and one exacerbated by higher costs, says a recent report. It joins the chorus of those warning that it is hard and harder for people to save, and outlines factors explaining the more difficult climate for preparing for, and... READ MORE

PBGC Amends its Regulations on Benefits Payable in Terminated Single-Employer Plans and Allocation of Assets in Single-Employer Plans

By John Iekel 9/14/2020

The Pension Benefit Guaranty Corporation (PBGC) has issued a final rule that amends its regulations on benefits payable in terminated single-employer plans and allocation of assets in single-employer plans. The PBGC has amended the regulations to prescribe certain interest assumptions under the... READ MORE

Aggregate Pension Plan Funding Up in August

By John Iekel 9/11/2020

Estimated aggregate funding of pension plans that Standard & Poors (S&P) 1500 companies sponsor increased by 4% in August, according to a new study. Mercer reports that aggregate funding for those plans rose to 83% in August. They attribute the improvement to an increase in discount... READ MORE

IRS Postpones Excise Tax Due Dates for Minimum Required Contributions Delayed Under the CARES

By John Iekel 9/11/2020

The IRS in Announcement 2020-17 has said that it is postponing until Jan. 15, 2021 the due date for reporting and payment of excise taxes relating to minimum required contributions delayed under Section 3608(a) of the CARES Act. The IRS issued Announcement 2020-17 on Sept. 10. The Jan. 15, 2021... READ MORE

Missed the Restatement Deadline? Remember VCP

By John Iekel 9/10/2020

July 31, 2020 is in the rearview mirror. And for preapproved pension plans and 403(b) plans that was a big day—the date by which those plans were to make their restatements. Jerry Kalish, founder and President of National Benefit Services, Inc., in a recent entry in the Retirement Plan Blog,... READ MORE

CRS Outlines Proposals to Fix Social Security by Raising or Eliminating the Wage Cap

By John Iekel 9/8/2020

Raising or eliminating the cap on wages subject to taxes could reduce the long-range deficit in the Social Security trust funds, says the Congressional Research Service (CRS), in a report it issued on Sept. 2 that outlines proposals that would use those approaches. The report, “Social Security... READ MORE

PBGC Updates Assumptions for Determining De Minimis Lump Sum Benefits in PBGC-Trusteed Single-Employer Plans

By John Iekel 9/8/2020

The Pension Benefit Guaranty Corporation (PBGC) on Sept. 8 announced that it is modernizing the assumptions it uses to determine de minimis lump sum benefits in PBGC-trusteed single-employer plans. The PBGC says that it is taking into consideration modern structures and methods and intends this... READ MORE

Treasury Outlines Plans Fulfilled and Still to Be Met

By John Iekel 9/4/2020

The Treasury Department in a fourth quarter update to its 2019–2020 Priority Guidance Plan reports on the progress it and the IRS have made in meeting the plans they set regarding projects during the period July 1, 2019-June 30, 2020. The 2019-2020 Priority Guidance Plan contained 203 guidance... READ MORE

IRS Expands Extensions of the Deadline for Discretionary Amendments Made to Certain Pre-Approved Plans

By John Iekel 9/3/2020

The IRS in Revenue Procedure (Rev. Proc.) 2020-40 has expanded the situations in which the plan amendment deadline for discretionary amendments made to qualified pre-approved plans and 403(b) pre-approved plans may be extended. Rev. Proc. 2020-40 modifies Section 15.05 of Rev. Proc. 2016-37 and... READ MORE

IRS Issues Guidance Implementing Payroll Tax Relief

By John Iekel 9/1/2020

The IRS has issued Notice 2020-65, guidance implementing President Trump’s Aug. 8 Presidential Memorandum directing the Secretary of the Treasury to defer the withholding, deposit and payment of certain payroll tax obligations under Internal Revenue Code Section 7508A. The Treasury Secretary has... READ MORE

Interest Rates and Liability-Driven Investing

By John Iekel 8/31/2020

How corporate pension plan funds are invested is of great importance. One of the strategies some plans use is liability-driven investing (LDI); a recent paper discusses how interest rates relate to such an approach. In “The Impact of Interest Rate Expectations on LDI Strategy,” Senior Consultant... READ MORE

Communication Best Practices

By John Iekel 8/31/2020

Communication with employees about benefits is always critical. And now there’s an added wrinkle—the pandemic. It’s changed the rulebook, at least in some ways, and a recent blog entry offers suggestions on communicating in this upended environment. In “How to Communicate Employee Benefits in... READ MORE

PBGC Seeks to Extend Info Collection About Missing Participants

By John Iekel 8/31/2020

The Pension Benefit Guaranty Corporation (PBGC) plans to ask the Office of Management and Budget (OMB) for its approval to extend its collection of information to aid its effort to locate missing participants and beneficiaries and pay their benefits. The PBGC intends to request that the OMB extend... READ MORE

Pension Buyout Costs Down in July, Says Report

By John Iekel 8/28/2020

Estimated retiree buyout costs fell in July, marking a reversal of the results in the previous month, says a recent report. Both the average accounting discount rates and the annuity purchase rates decreased in July, says Milliman, fueling a drop in the lower estimated retiree buyout cost. The... READ MORE

Serving Employees and Plan Participants in Challenging Times

By John Iekel 8/27/2020

Among those most attuned to retirement plans in challenging times like these are those approaching retirement. For them, the term “retirement plan” has a very double meaning—and employers and plan sponsors can play a role in addressing their concerns. In “Retirement Plans and Coronavirus: Take... READ MORE

PBGC Issues Final Rule on Procedures for Guidance Documents

By John Iekel 8/25/2020

The Pension Benefit Guaranty Corporation (PBGC) is issuing its final rule on procedures for PBGC guidance documents in accordance with Executive Order (EO) 13891, issued by President Donald J. Trump on Oct. 9, 2019. This final rule sets forth the PBGC procedures for issuing PBGC guidance documents... READ MORE

Time Grows Short for Hybrid Plans to Submit Amended Determination Letter Requests

By John Iekel 8/25/2020

Time is running out for statutory plans to submit determination letter requests under a program the IRS announced and launched in 2019. Amended individually designed statutory hybrid plans have until Aug. 31, 2020 to submit determination letter applications. The IRS on May 1, 2019 issued... READ MORE

Virtual Presentations in a Virtual World

By John Iekel 8/24/2020

The circumstances in which retirement plan professionals—like everyone—have found themselves spell opportunity to develop new ways of working with and serving clients. An Aug. 6 webcast offered practical ideas on how to capitalize on that opportunity and serve clients virtually—and in the process,... READ MORE

DOL Proposes Registration Requirements for Pooled Plan Providers

By John Iekel 8/21/2020

The Department of Labor (DOL) on Aug. 20 issued proposed regulations that would establish requirements for pooled plan providers (PPPs) to register with the DOL. The DOL says that it recognizes that there may be challenges associated with these new types of multiple employer plans (MEPs) that it,... READ MORE

IRS Issues Proposed Rollover Rules for Qualified Plan Loan Offset Amounts

By John Iekel 8/19/2020

The Aug. 18 proposed rules spell out procedures for rolling over qualified plan loan offset amounts under the Tax Cuts and Jobs Act (TCJA). The rules set forth regulations relating to amendments made to Internal Revenue Code Section 402(c) by Section 13613 of the TCJA. That provision of the law... READ MORE

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