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Do You Know Where Your Participants Are?

March 14, 2016

Authors

Brian Berglund

Do You Know Where Your Participants Are?

March 14, 2016

by: Brian Berglund

Missing ParticipantThe Department of Labor (“DOL”) has recently implemented an initiative to investigate the manner in which defined benefit plans of large employers comply with the required minimum distribution rules set forth in Section 401(a)(9) of the Internal Revenue Code (“Code”). The initiative is focused on the extent to which large employers have processes in place to (i) locate missing plan participants, (ii) inform deferred vested participants that a benefit is payable, and (iii) commence benefit payments in a timely fashion by each participant’s “required beginning date” (generally, the April 1 following the later of the calendar year in which the participant reaches age 70½ or the calendar year in which the participant terminates employment).

In light of the DOL’s audit

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Thinking of “De-Risking”? You Might Have to Think Again….

July 20, 2015

Authors

benefitsbclp

Thinking of “De-Risking”? You Might Have to Think Again….

July 20, 2015

by: benefitsbclp

While pension plans as a whole are heading toward extinction, many employers haven’t been able to terminate their plans for a variety of reasons – including collective bargaining mandates and underfunding status which precludes termination.  Employers in this situation are left confronting the pressure to move the risk from the corporation’s balance sheet to the individuals covered by the plan.  This risk mitigation concept is generally referred to in the industry as pension “de-risking”.  One common de-risking strategy has been to offer a limited time period during which individuals in pay status can elect to forego future annuity payments and receive an accelerated lump sum payment that is the actuarial equivalent of their remaining annuity payments (sometimes referred to as a “lump sum risk transferring program”).

De-risking has been met with resistance from Congress and the agencies tasked with overseeing pension matters – PBGC, IRS, Treasury and DOL; these governmental

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