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Guaranteed Income
Single premium buy-out sales in the third quarter of 2021 were up sharply and approached record levels, according to a new report.
In its study of 19 companies that represent 100% of the U.S. pension risk transfer market, the Secure Retirement Institute reports that U.S. single premium buy-out...
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In a private letter ruling (PLR), the IRS has issued a waiver of the 60-day rollover deadline for Roth amounts erroneously deposited in traditional IRA. It issued PLR 202147015 on Sept. 1, 2021, but only recently released it.
The Scenario
In the circumstance about which the IRS issued the PLR, a...
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While 4% generally has been considered a safe withdrawal rate for retirees for the better part of the last three decades, a new paper by Morningstar argues that, given current conditions, the rate should be lowered.
In The State of Retirement Income: Safe Withdrawals Rates by Morningstar’s...
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In its inaugural U.S. Retirement Market Outlook, T. Rowe Price offers insights on the major themes professionals at the firm expect to shape the retirement landscape in 2022.
According to the paper, given the impact of the significant global events over the past two years, the three themes that...
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The recent past and the challenging present have had a variety of consequences for retirement plans and participants. A panel of experts in a recent webinar discussed where we are and what can be done to improve retirement saving.
The experts, all from T. Rowe Price, included Joshua Dietch, Vice...
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According to an announcement by the program’s board, MarylandSaves will begin offering its new automatic workplace retirement and emergency savings program starting next summer.
Created by legislation that went into effect on July 1, 2016, MarylandSaves is a state-sponsored program that seeks to...
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The Department of Labor announced on Nov. 23 that in FY 2021, the Employee Benefits Security Administration recovered more than $2.4 billion in direct payments to retirement plans, participants and beneficiaries.
Those recoveries resulted from 1,072 civil investigations, 741 of which resulted in...
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While it’s the celebration following a successful harvest held by the Pilgrims and members of the Wampanoag tribe in 1621 that provides most of the imagery around the holiday, Thanksgiving didn’t become a national observance until much later.
Incredibly it wasn’t marked as a national observance...
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The Pension Benefit Guaranty Corporation (PBGC) announced on Nov. 23 that it has updated the ERISA Section 4044 mortality table for 2022 valuations.
This table is used:
to determine liabilities when a single-employer plan terminates in an involuntary or distress termination; and
when a...
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Americans give state-facilitated retirement programs an enthusiastic nod, a recent study has found.
In the National Institute on Retirement Security (NIRS) study “Americans’ Views of State-Facilitated Retirement Programs,” NIRS Executive Director Dan Doonan and Kelly Kenneally, who has provided...
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The Pension Benefit Guaranty Corporation (PBGC) on Nov. 22 posted the applicable present values for maximum guarantees for 2022 plan years.
The PBGC provides the values in a table that contains the present values of its maximum guarantee for purposes of the Code Section 436(d)(3) restriction. ...
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There are proposals to replace the current formula by which the Social Security windfall elimination provision (WEP) is determined to one that is proportional. The Congressional Research Service (CRS) has issued a study that compares such a formula to the way it is currently determined.
In “The...
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Under a new law, employers in California are responsible for CalPERS overpayments under certain circumstances.
SB 278, enacted on Sept. 27, 2021, is intended to ensure that a retired CalPERS member is protected from a retroactive clawback of their benefits when alleged misapplication or...
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The Pension Benefit Guaranty Corporation (PBGC) reports that in 2021, not only did the financial condition of its single-employer program continue to improve, but its multiemployer program has improved dramatically in what the agency calls “a sharp contrast” to its condition just one year ago.
So...
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Yes, younger generations have lower levels of financial literacy—but the results of a new study suggest that the overall levels and implications may not be what you think.
According to the report from the TIAA Institute and the Global Financial Literacy Excellence Center (GFLEC) at the George...
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Editor’s Note: This is the first in a three-part series on pension plan funding. It features discussions with Brad Smith, Partner at consultant and investment firm NEPC and member of its Corporate Defined Benefit Team.
Pension plan funded status has long been a topic of interest and concern. But...
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Bipartisan retirement security legislation that shares some overlap with the SECURE Act 2.0—and is supported by the American Retirement Association—has been approved by a key House committee.
The House Education and Labor Committee on Nov. 10 approved the Retirement Improvement and Savings...
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Colorado and neighboring New Mexico plan to form a partnership regarding the state-run retirement saving programs each operates.
The Colorado Department of the Treasury announced Nov. 9 that the Colorado Secure Savings Program and the New Mexico Work and $ave programs signed a Memorandum of...
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October was a treat, not a trick, for pension plan funding. Two recent reports have good news for pension plans and their participants and beneficiaries.
Milliman reports that in its 100 Pension Funding Index—which measures the health of the 100 largest corporate defined benefit plans—the funded...
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The IRS has shed light on whether rehiring a retiree causes that retirement to not be considered a bona fide retirement and on in-service distributions to people who are still working.
The IRS provided this information by adding frequently asked questions (FAQs) to those it provides concerning...
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