When you terminate your employment from a company that has a defined benefit (“DB”) plan, you usually have an option to take a lump-sum payment or to leave the assets in the company’s plan and receive monthly payments for your lifetime (and your spouse.) More than 90% of employees opt for a lump-sum payout from [...]
As an HR professional, the list of potential stressors can seems endless. From being available to all company employees, managing crises and staying educated on the latest trends, there comes a point when time to reflect and recharge is vital. Depending on the time of the year, the burdens put upon the HR department can [...]
On or before July 1, 2012, plan sponsors should have received disclosures from all covered service providers to the plan of the costs of services, direct and indirect compensation, and fiduciary status. Responsible plan fiduciaries are obligated to ensure provided disclosures are complete and in compliance with Regulation 2550.408.b-2(c). In making a determination of completeness, [...]
Defined contribution and defined benefit plans are extremely complex, which has led to an industry devoted solely to administering and ensuring the proper compliance of these plans. As a general rule, the more customized a plan becomes, the more expensive it becomes to administer. And to be clear, there’s nothing wrong with having a highly customizable [...]
New legislation, Moving Ahead for Progress in the 21st Century Act ("MAP-21"), has provisions affecting defined benefit (“DB”) pension plans. Plan sponsors who want to terminate their DB plans want their plan assets to be about equal to their plan liabilities on a termination basis (e.g. insurance company annuity or PGC lump sum). This way [...]
Even more than money, family relationships are fundamental to a successful (i.e., enjoyable, fulfilling) retirement. Think about it: would you rather spend your older years pinching pennies but enjoying a great marriage, with loving and mutually supporting relationships with your children, frequent interactions with grandchildren, and happy connections with extended family – or would you [...]
Most companies want to see a predictable and stable retirement of their older employees in order to facilitate growth opportunities for younger and more technologically advanced employees. That is one of the main reasons why companies sponsor 401(k) plans. But, based on the findings below, this is not going to happen. If employees can't afford [...]
Without a defined benefit pension plan (DB plan) employers don’t have control over the timing of their employee’s retirements. Older employees may not be able to afford to retire, will remain on the payroll and may never retire. If they don’t save enough to retire, they can block upward mobility and not allow employers to [...]
Well, if the stock market caught you off guard again … “fool me once, shame on you! But, fool me twice, shame on me!” Do your company and your employees want to continue on a stock market roller coaster? What do you think will happen to the stock market if, for example, Israel strikes Iran [...]
You know you’re not getting the value you deserve when your actuary: 1. Is not available immediately when you need them. If the person that you report to wants an answer now, you need an actuary who will give you advice immediately. If you are in union negotiations, you need answers immediately. 2. Doesn't give [...]